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Sequencing Growth While Bootstrapping


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#1 somedreamer

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Posted 13 July 2017 - 10:29 AM

Hey guys! I've been following this forum and learning a ton from you all since I started business in 2014. We started small with just 2 units and focused on backyard customers. Now we've got 6 units repeat customers and are being asked to do larger events. Our business plan includes incorporating and insurance but had we done that at the start we would not be in business today.

Now that we've proven to ourselves that we have staying power and positive cash flow we want to start moving on incorporation and insurance.

I'd like to hear from you all about a recommended sequence to do all this if we cannot yet afford to do it all at once. Which of these moves should I be looking to make first?

Does incorporation require insurance first? Or would my insurance premium be more cost effective if we are incorporated first?

Thanks for your advice.
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#2 MWI

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Posted 16 July 2017 - 10:37 PM

Yes, insurance apps will ask for your FEIN, or SSN depending on the legal entity.  However, based on your above questions I would probably get out of business now and hope you never have a major lawsuit. 



#3 ADB

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Posted 17 July 2017 - 03:35 AM

MWI, do you have a brain to keyboard filter?

 

Somedreamer, our forum members apologize for our Member MWI, sometimes we would like to not know him.  Although knowledgeable, he's not always humble, and has no tact.

 

Somedreamer, your questions are probably best answered if directly asked to an insurance broker.  Your insurance might be a smidge lower if you are incorporated, but lower insurance premiums (to the best of my knowledge) will come with year to year experience.  You could also ask your insurance broker if you become a SIOTO member, if they will also offer you a slightly lower premium.

 

Personally, if you have one inflatable or a hundred inflatables, I wouldn't consider being in business without being incorporated and insured.  It's to easy to be sued and lose everything, even if you have done nothing wrong, it can cost you many thousands to prove your innocence.  (MWI's not so subtle point.)


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#4 somedreamer

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Posted 17 July 2017 - 05:25 AM

Thanks for your answer ADB. Both insurance and incorporation are coming soon. I'm aware of the exposure and will get covered right away. I just didn't have a rich uncle or a stack of savings bounds to cash in for the thousands of dollars needed to put all the pieces in place at once. People who think like MWI seem to forget that this forum exists to help new and existing businesses alike. I'm not running a carnival. I'm building a company one or two units at a time. Still, the negative energy just motivates me to work even harder to grow. Thanks.

Edited by somedreamer, 17 July 2017 - 05:26 AM.


#5 JumpAndJamLi

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Posted 24 July 2017 - 07:18 PM

Great response from ADB!

Somedreamer you should get insurance asap. It is realativly cheap for insurance and well worth the money. I could not sleep at night if i dodnt have it. I use cossio insurance and am happy with them. Give them a call for a quote.




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