When you first start to legitimize your business, it may be tempting to try to do some of the steps yourself. It’s understandable that you may want to save the money; however, it is highly recommended to just go ahead and hire the professionals. The second most likely reason for a business to fail is poor management. Part of managing your business properly is to engage the help of professionals who understand the right way to do things.
- You Can’t Know Everything – It’s just a fact that there is no amount of research you can do to make up for the years of education and studying that a professional has done to get their degrees and designations. Instead, spend your time learning more about your expertise and let others do their thing.
- You are Putting Yourself at Risk – Even if you start an LLC or an INC, there are ways you can totally void all the protections that this action puts into place. One such thing that can ruin your protection is co-mingling money. Accidentally using your business PayPal card to buy nonbusiness stuff like vacations will remove that protection.
- You’re Putting Your Family at Risk – Did you know that anyone in your immediate family, and possibly even other relatives if you live under the same roof, can be liable for your business mistakes if you’re not careful.
- You’re Putting Your Partners at Risk – If you don’t have the right contracts in place, a clear separation of businesses, and so forth, both of you could be putting each other’s businesses and livelihood at risk.
- Your Time is Worth More – The fact is, you do something worth a paycheck already. You are an expert in your field. You don’t need to become an expert in everything to be successful. In fact, you need to hire the right experts so that you can do more of what you do.
- You May Pay More for a Mistake – While the couple hundred dollars a month it might cost you to have a bookkeeper and CPA at your disposal seems harsh right now, if you make a mistake - even through ignorance - it can end up costing much more than that.
- Ignorance of the Law is Not a Defense – Even if you didn’t know you couldn’t deduct that meal you had as a business expense and you do it, you’ll still pay a fine. You might even be accused of fraud if you’re not careful.
- You’re Probably Leaving Money on the Table – Most people report that hiring a good lawyer and an excellent financial person such as a CPA ends up saving money and making more money than those who try to do it themselves. The truth is, most people will put off certain things, primarily bookkeeping and financial matters, instead of doing it. If you hire a professional, it will get done in a timely fashion.
- You Need the Expert Advice and Support – It has been mentioned already: you cannot ever know everything, and sometimes internet searches just waste time. If you can call or email an expert, even if you get a charge, it’s going to end up saving you time and money.
- An Expertly-Designed Contract is Worth More Than You Pay for It – If you use any type of contracts or need to sign one, a contract lawyer can save you not just thousands but hundreds of thousands. Ask people who got sued after they became rich, like Facebook’s founder, for example. That could have been prevented by having a solid contract in place.
Some things you just should not DIY as a small online business owner. The law is too complicated for most people to remember or know. Even the experts will have to look up the information to ensure compliance. The good thing is, they know what to ask and what to look for; you don’t. You could be doing something that you think is right, then find out it’s wrong and end up paying hundreds of thousands of dollars due to the mistake.
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