Build Your Team for Your Business' Success

Today, countless communication channels allow us to learn new skills and empower us to gain the confidence needed to tackle various projects whether at home or elsewhere. My best DIY project was replacing the water pump on my outboard boat engine, which took me about 20 minutes after watching an online video. The best part? I was able to save over $325! Not to mention, I avoided the hassle of trailing the boat to the shop and leaving it there for a few days.

While I successfully completed the installation, it's important to consider the nature of the project: I was replacing a single part and could immediately see the freshwater properly exiting the lower unit. There were very few variables that could have affected the engine's operation or the overall performance of the boat, making the risk of doing this DIY project relatively low.

However, starting or running a business is far more complex. Unlike a DIY project, a business exists to serve customers, and in doing so, it often has to engage daily in multiple transactions with other businesses to meet customer needs. Because of this complexity, it's crucial when building or operating a business to establish relationships with three key partners: a business attorney, a CPA firm, and a bank. These three pillars are not only essential but critical to the long-term success of the business. They help lower the risks of legal liabilities, potential audits, and the time and effort involved in running a business smoothly.

A transactional or business attorney ensures that a business is properly established and that all the appropriate legal documents are in place, such as articles of incorporation, shareholder or operating agreements, bylaws, and work-for-hire contracts. These documents must be tailored specifically to the business and the state in which it operates. I’ve witnessed many business breakups and legal battles that could have been avoided if the proper legal documentation had been in place from the start.

Secondly, partnering with a CPA firm allows a business owner to maintain financial organization and gain a clear understanding of its finances. This relationship can also strengthen the ability to pursue new projects, secure financing, and be critical when planning or executing a business exit. I’ll never forget when one of my clients was selling the company. He told me, “Rafael, as part of the sale, the buyer needs my accounting books to be audited” Fortunately, he had the right CPA firm in place, and they were able to produce the necessary documentation on time, ensuring the sale went through without delays.

Finally, finding the right bank and establishing a relationship with a banker is vital to avoiding unnecessary banking transaction costs or delays, especially if your business conducts international, interstate transactions or operates online. I once had a client who sold obsolete parts to companies outside the U.S. At that time, only a handful of banks in town could provide the specific transactions needed at a low cost while avoiding delays in processing deposits. Additionally, a relationship with your banker can help your business prepare for future financial needs, such as a line of credit, loan, or other products that keep your business operational. As the saying goes, “Ask for money when you don’t need it; don’t ask for money when you do.” This couldn’t be more true.

In conclusion, while certain DIY projects can be rewarding and low risk, running a business is a far more intricate endeavor that requires careful planning and support. Establishing strong relationships with a business attorney, a CPA firm, and a reliable bank will provide the foundation necessary to navigate the complexities of business operations. These trusted partners not only help mitigate risks but also position your business for long-term success.

Additionally, one of the best ways to navigate the local market for these three pillars is by having a conversation with the Chamber’s Executive Director or team. They can help connect with trusted professionals in these key areas. This personalized guidance is one of the greatest benefits of being part of an organization like the Chamber, as it provides access to vetted resources.  So, take a break from working in your business and start working on your business schedule that meeting with the Chamber team, because a coffee with them might be one of the best investments you make all year!

Rafael Caamano is the site manager for the UCF Business Incubator in Winter Springs. The UCF Business Incubation Program provides in-depth help to early-stage businesses throughout Central Florida. If you would like to learn more, please visit our website by clicking here.