Due Diligence Before Starting a Business

Consult with the Small Business Development Centers

Stop and Think. Especially if this is your first business venture. Starting a business is more than just meeting the legal requirements; there’s much much more. There are personality, family, financial, market, education and planning considerations. Adequate and thorough analysis of these and other factors is a must. After all, your livelihood and the financial stability of your family is at stake.

The Louisiana Small Business Development Centers provide step by step guidance in assessing the viability of your idea and development of a business plan. The SBDC offers, at no charge, vast resources on demographics, industries, disposable income, competition, location evaluations, traffic counts and other data essential to the realistic evaluation of your business. If you have any plans to apply for a business loan, do not skip this step. Lenders will require a business plan, so it is in your best interest to start off right.

Don’t delay. Call the SBDC at Southeastern Louisiana University to make an appointment. 985.549.3831

Consult with an attorney, accountant and insurance agent as part of your due diligence.

After you have confirmed through the SBDC resources that you have a viable idea and plan, you should consult with an attorney, accountant and insurance agent.

The attorney and accountant can assist in the evaluation of the legal and tax considerations for the type of entity you should operate (such as sole proprietorship, corporation or limited liability company).

The attorney can also provide advice on other business related issues such as:

• Employee handbooks
• Leases
• Real estate transactions
• Contracts of all kinds
• Duties owed by owners to each other
• Advantages and disadvantages of multiple owners and much more

Accountants can help you create and understand budgets, periodic financial statements and tax planning.

An insurance agent can provide guidance on the type of insurance you need to operate your business, the amount of coverage and the properly named insured.

Types of insurance that may be of interest to you are:

• Coverage against bodily injury and property damage
• Coverage against injuries sustained by employees
• Automobile insurance
• Employment related lawsuits
• Directors and officers protection
• Malpractice/errors and omissions
• Personal property coverage
• Flood
• Employee dishonesty
• Loss of income and much, much more

Have questions about your business or business idea?

Then contact us for a consultation.

And, visit our Business Law webpage.