Expert Series: New Year, New Business

In honor of the new year, Wallis Bank is debuting a new blog series. The Expert Series blogs will consist of useful and beneficial information from the experts themselves. The new series will cover informative topics and will allow you to see different perspectives from professionals in that particular field.

To kick off the Expert Series, the first topic is New Year, New Business. We conducted an interview with two of our customers that are successful entrepreneurs to get insight into the process of starting a new business.

Shahin Naghavi is currently a Managing Partner for Riverside Equity Group. Riverside Equity Group’s business activities encompass the long-term ownership, management, acquisition, development and redevelopment of strategically located community shopping centers and select industrial properties.

Ali Nasser is the Founder and CEO of AltruVista, a wealth planning firm focused on helping successful business owners with their biggest financial and life decisions. Ali speaks on topics tailor-made for business owners: exit planning, balance sheet strategy, investment, estate, and life planning. Ali’s first book, The Business Owner’s Dilemma, will be released in 2021.

Naghavi and Nasser are prime examples of established business owners that have diverse approaches to launching a business. Continue reading for advice from experienced entrepreneurs who represent different industries and mindsets for starting a business.

1. How do you know when your idea/product has potential enough to invest your time and money to start a new business?

Shahin Naghavi: When an idea pops in my head, I immediately start running through the pros and cons. What problem does it solve? And how can we market it? After a few days/weeks of taking notes and doing a 1-5-10 year timeline, I’ll decide if I should start investing maximum energy and resources. 

Ali Nasser: Does your idea solve a problem? Are you passionate about building it? If so, validate your idea with a “qualified buyer.” Identify 3-5 people that would buy or use your service. Make sure that those qualified buyers would write a check for what you do. By validating your product or service with a small group of buyers first, you will save a lot of time and money as well as get invaluable feedback.

There are various ways to justify your idea. Whether that be creating timelines or receiving outside opinions, being confident in your idea/product is crucial.

2. How much money do you need to start and run a business?

Shahin Naghavi: It all depends on the project and project vision.

Ali Nasser: You don’t necessarily need any money to start a business. The 4 key things you need are passion, perseverance, a simple plan, and proof of concept. You can present your plan and proof of concept to raise money, find a partner, or find investors. If you have these 4 things, you can find funding or use personal savings.

Although having a base is a good start, a well thought out vision and plan can take you a long way. If people aren’t willing to invest in the project, then returning to the drawing board might be the next step. 

3. How do you know which business structure is best for you? LLC, corporation, sole proprietorship, partnership, etc.

Shahin Naghavi: It’s always a good idea to consult your mentors, CPA, and attorney. Start the business correctly and legally from the beginning. 

Ali Nasser: Consider your purpose for building this company. Is it to increase your cash flow? To grow and sell the company? Is it your hobby? Depending on your goal, your tax, legal, and financial advisors can provide you with the right entity. Most small businesses start as an LLC, but this will vary based on the above goals.

Assembling a team or support system can be a huge advantage. Asking for help is not a sign of weakness. Utilizing your resources could be one of your greatest strengths. If starting a business was easy – everyone would do it. 

4. Is a business plan necessary/required to start a business?

Shahin Naghavi: I’m actually anti-business plan. I feel it causes analysis paralysis. You either want to make it work or you don’t. Your passion and work ethic is the best plan. 

Ali Nasser: It would be in your best interest to have a simple business plan. Ideas become clear when you put them on paper. I love the ‘lean canvas’ template for a one-page business plan; it keeps things focused and simple. A plan allows investors and your team to have more clarity of your vision.

There is no mandatory or correct route to start a successful business, and every firm’s journey is unique. A comprehensive business plan or your enthusiasm and perseverance could lead you to achieve your goals. 

5. What forms and paperwork do you need to find/fill out when starting a business?

Shahin Naghavi: Consult your attorney! In short, this could include LLC, a DBA, and a Company and Partnership agreement. 

Ali Nasser: I am 100% against business owners gathering all the forms and documents to start a business on their own. I advise you to find a good CPA or attorney to open your entity, so you can focus on building your company and finding good people to support you. 

Consulting a professional is very beneficial. Getting lost in legal documents could delay or deter you from concentrating on your vision and the project itself. 

6. How do you open a business bank account? Where should you do it?

Shahin Naghavi: If you haven’t already established a banking relationship, then do that now. A banker is a long-term partner who will believe in you. Reach out to Wallis Bank and set an appointment to meet in person. 

Ali Nasser: Find a bank that understands business owners, don’t just go straight to your regular retail bank. Wallis Bank has a specialty in business owners, and I have found they understand the owner’s needs and position. This can create added value for a small business.

Find a bank that wants to create a relationship with you, rather than receiving payments. Your banker should want to see you and your business succeed. Bankers are experienced professionals that can be a source of valuable advice. 

7. What type of risks are associated with a new business? How do you plan to manage risks/unforeseen situations?

Shahin Naghavi: Always hedge! Plan for the worst and plan for the best simultaneously. 

Ali Nasser: Anytime you start a small business, there are risks. Taking risks is an essential part of the entrepreneurial dream. Without taking a risk, you cannot generate the reward. Including a SWOT analysis in your business plan can help prepare for risks or unforeseen situations. 

If there are no risks, then there is no reward. You should be prepared and have backup plans accessible when unforeseen situations arise.  

8. When is the best time to start a new business?

Shahin Naghavi: Right this moment. Today, yesterday, tomorrow. 

Ali Nasser: Start now. I suggest you immediately start validating your idea or concept and get momentum. Talk to target buyers, receive feedback, and get started as quickly as possible. Perfection is the enemy of progress. Focus on the “what” and the “why,” and you will figure out the “how” over time.

Don’t wait for the “perfect” time to begin the process of your new business. Here is your sign to start investing in yourself and your goals!

For more information about Riverside Equity or AltruVista, please visit www.riverside-equity.com or www.altruvistawealth.com.