Should I Start My Business Formal or informal?

Hello. I have received many emails from people in many countries of Latin America, wondering if I should start doing business informally or whether to go through all the paperwork often cumbersome formality.

In this regard I fully understand the difficulties and delays of formality. From experience I must point out that the entrepreneur as an obstacle should not use the "pretext" for the formality of their actions. The true entrepreneur starts with a lot of "caution" is often a business with a certain informality. For the experience I must also indicate that the formality has many advantages, such as possibilities of bank credit, avoid legal problems, municipal, police, etc etc etc. However, it is also important to explain that many people "using the pretext of" paperwork delay "before" you start your business, because in his heart the paralyzing fear, panic, not necessarily to informality, but fear failure as an entrepreneur.

The worst fear is the "inaction". I do not mean this article we should be "irresponsible" and work through a total mess as well as lack of important documents and permits for our enterprise. What I explain is that in many countries of Latin America, often, the entrepreneur (as a matter of saving money up front) starts with a grade of "relatively informal" business. With the passage of time goes into formality, no matter what it means spending money, wasting time in the process, exposure to swarm the formal system in the world of business, etc. It is rather important to take into account informal start something must be "for now" but we always try to bring to formality. This will avoid for the foreseeable future a lot of headaches that we can bring informality.

When I said that informality should be relative to the start does not mean that we should be neglected especially in the aspect of "security" as a bad security policy that can bring us misfortune should always be avoided. So I used the word "relative informality." As a final corollary: If we have to start a venture we use the elements necessary to avoid endangering the lives of those around us or work with us, but that the "formality" is not an obstacle to start something. Sow to reap.

Until next time

Original article: Juan Carlos Vélez-General Manager Ceateci

www.ceateci.net

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