When you’re running a business, especially in the early days, there’s a lot to keep track of. It's easy to overlook things, and let me just say upfront—if you’re reading this and realizing you might’ve missed a few steps, you’re not alone.
I’ve worked with countless entrepreneurs, and I can tell you this: missing a few things doesn’t mean you’re failing. In fact, the majority of small business owners admit they don’t have it all figured out.
But here’s the beauty of being an entrepreneur—you’re taking steps to grow, and that already puts you ahead of most people.
A 2019 study showed that while 62% of Americans dream of starting their own business, fewer than 10% actually do it. And for those who seek mentorship or coaching, their odds of success increase by more than 70%. So even if you make (or have made) some mistakes, or you're not where you want to be, that's OK! Because you're already miles ahead, just by taking the time to look into these things... And that’s why addressing these foundational areas is so powerful.
Let’s dive in.
1. Keeping Business and Personal Finances Separate
This is the number one issue I’ve seen trip people up. It’s not just about staying organized (though that’s part of it). Mixing personal and business finances can lead to tax headaches, legal trouble, and frankly, a lot of stress. If you only fix one thing on this list, open a separate business bank account and credit card. Your future self (and your accountant) will thank you.
2. Filing Statements of Information and Other Key Documents
Every state has its own rules about annual filings, and let me tell you, they do not remind you nicely if you forget. I’ve seen businesses fall out of good standing simply because someone forgot to file a $20 statement of information. Set a calendar reminder. Trust me, this small step will save you a world of trouble later.
3. Using a Registered Agent to Protect Your Privacy
If your home address is listed on public filings, you’re leaving yourself exposed—literally. Using a registered agent keeps your personal information private and ensures you don’t miss important correspondence, like tax notices or legal documents. It’s an affordable, easy solution that offers big peace of mind.
4. Disability Insurance: Don’t Leave Yourself Unprotected
This one’s a bit of a sleeper issue. Many states offer disability insurance for small business owners, but it’s not automatic, and a lot of people don’t even realize they need it. Here’s the thing: if you can’t work due to an illness or injury, what’s your plan? Disability insurance is like a safety net for you and your income.
5. Build a Budget and Know Your Numbers
Here’s a quick test: Can you answer these three questions off the top of your head?
What’s your monthly business expense budget?
How much money did you make last year?
How much do you plan to make this year?
If you hesitated, you’re not alone, but successful entrepreneurs review these numbers regularly—monthly, at a minimum. It’s not about perfection; it’s about clarity. Knowing your numbers gives you the power to make better decisions and stay ahead of the game.
6. Insurance Brokers should be one of Your Secret Weapons
Insurance can be overwhelming. Liability, professional coverage, cybersecurity—the options feel endless. That’s why having an insurance broker you trust is a game-changer. They’ll help you figure out what you actually need (and what you don’t) so you’re protected without overpaying.
7. Review Labor Law Changes at Year-End
If you have employees, the end of the year is the perfect time to check in with a labor attorney. Employment laws change all the time, and many new regulations take effect on January 1. I’ve seen entrepreneurs get blindsided by compliance issues that could’ve been avoided with one annual meeting.
8. Major Changes? Check Your Entities
Did you start a new venture, acquire a rental property, or join a partnership this year? If so, it’s worth reviewing whether you need to set up a separate entity for those assets or projects. Grouping everything under one umbrella might seem simpler, but it can expose you to unnecessary risk.
9. Update Contracts and Policies Regularly
When was the last time you reviewed your client agreements, vendor contracts, or privacy policies? If it’s been more than a year, it’s time. I’ve seen old, outdated contracts cause unnecessary disputes—and worse, lost revenue. Keep them fresh, clear, and legally sound.
10. Reflect on Your Foundation Annually
Year-end isn’t just about closing the books; it’s about reflecting. Take stock of what’s working, what’s not, and what needs attention. Did you set goals you haven’t tackled yet? Are there systems or processes that need upgrading? A little time spent on review and reflection can set you up for a smoother, more successful year ahead.
Final Thoughts
If this list feels overwhelming, take a breath. Nobody gets everything perfect right out of the gate. The key is to start where you are, tackle one thing at a time, and surround yourself with the right people to support your growth.
I’ve seen these issues pop up over and over, and I promise you: addressing them will save you so much time, stress, and money down the line. And if you’re already working on some of these, give yourself credit. You’re building something incredible—one solid step at a time.
Remember: the fact that you even have these compliance things to review and look over is in and of itself a symbol of your success! It means you're doing things that most people only dream of. And as always, if you want to dive deeper into any of these areas, I’m always here to help.
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