A young budding entrepreneur contacted me recently about a new business she is working to start. Her first step towards entrepreneurship, however, was somewhat surprising to me.
Rather than researching her potential customer’s needs and why they would pick her product over the ones they currently use, she formed a corporation. She could have waited years before incorporating.
In my opinion, unless she has paying customers, forming a corporation is a waste of money.
Proverbs 24:27 says, “Prepare your work outside, and make it ready for yourself in the field; afterward, then, build your house.”
If you are launching a new business, your first step ought to be determining your customer needs and wants. Then, test your idea by beginning to sell your product. Build your administrative “house” soon after.
