If you didn’t know who Donald Trump was before his meteoric rise into the Presidency, you definitely know who he is now. Born to wealthy parents who ran a successful real estate business, Trump grew up learning the skills he would need to foster his own real estate empire, which includes plenty of hotels, casinos and golf courses worldwide. And although Trump had an advantage above most when it came to his success, anyone can start a business with nary a dime to their name and rise to the heights of global success. Take Steve Jobs, for example, who founded Apple in his garage before utilizing his interpersonal skills to build relationships that helped him grow the brand into the innovative sensation it is today.
It’s no secret that, even with connections or access to the necessary finances, building any type of business can be an arduous task. In fact, not even Trump was immune to economic dry spells. It’s how you approach those hardships when they arise that determines your resolve. Facing bankruptcy in the early nineties, Trump used his controversial personality to enhance what he had learned in deal making and negotiation to save and rebuild his legacy into one of the most well-known brands in the world.
There are an incredible number of factors that must be taken into consideration when deciding to start a business. The first and most important is what type of entity you wish to form: a sole proprietorship, a partnership, a limited liability corporation or a corporation.
Choosing a sole proprietorship is the fastest, easiest way to start a business. There’s no formal paperwork or major legal formalities to deal with, no shareholder meetings or corporate minutes to worry about, and instead of a board of directors that must be involved in every major decision, the owner has full control over every aspect of the business. On the other hand, the owner is also liable for all business debts, which means the owner is putting all their personal assets at risk.
With a corporation, shareholders and board members aren’t liable for corporate debts, it’s far easier to raise money (by creating and selling stocks and acquiring investors), and the entity comes with much more tax benefits in a variety of areas.
Above all else, building a business takes time, patience, tenacity, negotiations, compromise and a willingness to take risks. More importantly, it takes trust, both in yourself to be able to do what needs to be done, as well as those you put faith in to help build your dream. Without it, you’re on the road to failure before you even begin.