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Long-term company management is not for all entrepreneurs

| Jul 9, 2019 | Business Formation & Planning |

Maybe you’re jazzed by the idea of actively promoting and running a business you have created through inspiration and sweat equity.

Or perhaps you just loathe the idea.

If that latter sentiment more accurately captures your view toward ongoing business management, you likely take due notice of any comment like this one:

“Starting out with the wrong organizational structure or poorly drafted organizational documents can put a real crimp in a new entity’s ability to perform.”

That remark features prominently on our website at the proven Connecticut commercial law firm of Berdon, Young & Margolis. It undoubtedly makes some entrepreneurs cringe.

Here’s why: Some creative business individuals simply aren’t cut out to be long-term company principals tasked with attending to endless business details. They wilt under the very thought.

Conversely, they are stellar performers when it comes to conjuring up viable commercial ideas and getting them to the point of viability in a competitive marketplace. They are “ideas” people who want to create and leave what follows in the wake of creation to other parties.

A recent Forbes article notes that those individuals comprise a distinct demographic that can materially profit from the timely sale of embryonic startups to established companies that might be riveted on future possibilities.

For obvious reasons, that is not typically a quick and easy endeavor. Forbes duly notes that it can be “a complicated process and fraught with pitfalls.”

The publication additionally points out, though, that entrepreneurs who “plan ahead and build with an acquisition in mind” can often reap sizable profits via that strategy.

Questions or concerns regarding a company purchase/sale or any other commercially linked matter can be addressed to an experienced legal team at an established business law firm.