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Entrepreneurs should seek advice from specialists, professionals say
By Tom Harlan

Entrepreneurs wear many hats as they build new enterprises, but they should enlist the help of legal financial and marketing specialists if they want to be susessful, local experts said.

Entrepreneurs should surround themselves with a good lawyer, an accountant and a financial adviser because starting a business is extremely complicated, said Carlos Torre, a wealth-management adviser for Merrill Lynch.

Mr. Torre said many entrepreneurs should seek out advisers who have seen businesses in different stages so they can point out opportunities and help solve problems.

"Business is an interesting ride, "he said, "especially in Miami where everything changes overnight."

An entrepreneur opening a small business needs to think of many issues related to employees and the business before lawsuits come in, said Judd J. Goldberg, a senior associate with Littler Mendelson, a labor and employment law firm.

In the initial stages of opening a business, entrepreneurs should outsource payroll and accounting functions, Mr. Goldberg said, adding that the entrepreneur's main focus should be to attract clients.

While specific tax advise depends on the entrepreneur's background, each entrepreneur should meet regularly with an accountant, said Alan Lips, a partner at accounting firm Gerson Preston Robinson & Co.

"A good entrepreneur meets with a CPA on a quarterly or semi-quarterly basis, " he said. "An overview of financial statements can give great insight into what kind of planning can be implemented to make a business more successful."

Entrepreneurs who are not in touch with their accounting on a weekly basis should contact a CPA to discuss setting up a system to better record assets and liabilities, Mr. Lips said. "Accounting, like sales, directly affects the bottom line, " he said.

In a new business that requires a lot of capital, it is critical for the entrepreneur to pay attention to cash flow and have a conservative budge, he said.

" A real savvy entrepreneur is going to have a cash-flow projection of what his first 12-18 months is going to look like before he dives in," he said. "We'll help them derive all the assumptions and come up with everything they need to do to set up their business."

Small-business owners should understand that Florida leads the country in class-action overtime suits, said Carol Lumpkin of Littler Mendelson.

She said all business owners should distribute an employee handbook that includes clear job descriptions and spells out policies on sick and vacation days and overtime pay based on federal and state laws.

"All businesses should create a handbook and job description and make sure they are sticking to them, " she said.

Entrepreneurs should contact a financial adviser who can help the businessman maintain and expand his wealth, Mr. Torre said, adding that many small-business owners need help with financing or run into cash-management problems as their businesses grow.

They have may funds in the wrong accounts for may not be earning interest on their investments, " he said.

Cost-effective marketing helps entrepreneurs with a new business get their products or services in front of the right people, said Patricia A. Thorp, president and owner of Thorp & Co., a Coral Gables marketing firm.

Many corporations are reluctant to hire unknown companies and will give business to the market leader, so startups need networking and publicity efforts to level the playing field, she said.

Her firm recommends that small businesses join a local organization and become actively involved in a high-profile role that involves leadership and speaking to gain visibility, she said.

Publicity through trade newspapers and magazines is another way to gain industry credibility, she said. Ms. Thorp said she recommends that clients do press interviews and pay to have prints of articles, which should focus on how their products or services can solve an industry problem.

While advertising with brochures and other materials may be effective, it can be expensive for startup businesses that are cash-strapped, she said.

"Don't spend a dollar more than you have to, but be sure to spend money where you need to," she said.

Overall, Mr. Torre said, several entrepreneurs start out with an idea and know how to sell and market it, but they don't consider the legal, labor and financial issues involved. And entrepreneurs that do consider those issues don't have time to build their businesses, he said.

"We live in a very competitive world," Mr. Torre said. "You have to be extremely quick in making business decisions."