Starting a company in Texas can be challenging at any time, but you may face a greater number of obstacles if you choose to do so when economic conditions are relatively weak. However, with adequate planning, it may be possible to overcome those hurdles.
It may be harder to obtain working capital
During times of economic uncertainty, banks and other traditional lenders may be less willing to provide working capital to new businesses. Therefore, it is important to have a loan officer or a self-employed friend review your business plan prior to submitting a loan application. Taking this step may help to ensure that you’re providing the information that a lender will need to take a chance on your company.
Start small and expand slowly over time
It may be in your company’s best interest to hire independent contractors as opposed to employees to save money. It may also be a good idea to operate from a home office instead of a dedicated commercial location. If you do hire employees, it may be better to hold off on offering a benefit package until the company makes enough money to afford doing so. Finally, you may be able to save money on advertising costs by using social media and email marketing tools to increase your brand reach. Adding a podcast, webinar or blog to your site can help position yourself as an expert in a given field.
It may be a good idea to consult with a business law attorney during the business formation process. An attorney may be able to help draft incorporation documents, partnership agreements or other important documents. This person may also help you decide how to structure your company and provide insight into how to obtain working capital for the organization.