Mission Driven Business Don't Make These 4 Startup Mistakes With Amy Cosper
Brian Thompson chats with Amy Cosper, former Editor-in-Chief of Entrepreneur Magazine, award-winning journalist, and author of the new book, "The Ultimate Guide to Startup Success." In this episode, Amy brings fierce honesty, contagious energy, and deep wisdom about what it really takes to build a mission-driven business in uncertain times. You'll also hear some of the biggest legal and financial mistakes founders make and be reminded why entrepreneurship can be a radical act of hope and defiance.
Episode Highlights Mission-driven businesses don't have to be altruistic.Amy describes a mission-driven business as one fueled by a higher purpose, but she's careful to clarify that purpose doesn't have to be altruistic.
"Having a mission-driven or purpose-driven company is what you stand for," she said. "It doesn't have to be altruistic, but it is what you believe in."
The mission should be the company's soul that emanates out to the branding, business plan, and revenue streams. As a consultant to startup founders, Amy routinely sees that entrepreneurs struggle with finding clarity.
"If you don't have clarity in what your company does, it's going to be really hard to find your purpose," she said.
Avoid common legal and accounting mistakes.Because entrepreneurs are visionary, they often overlook important, practical needs. Amy shared four, common mistakes she hopes future founders will avoid:
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Not maintaining accurate books from the start: While you may not want to think about the numbers, it's important to do accurate accounting as a business owner.
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Not getting an IRS Employer Identification Number (EIN): Your EIN is like a Social Security number for your business and should be tied to your entity.
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Giving your business short-sighted name: Naming your business after a fleeting trend or something specific to a geographic region becomes problematic when you want to grow.
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Not understanding how to structure partnership and operating agreements: If you don't plan for how a business will get split up or choose an appropriate business structure, you're setting yourself up for headaches when it's time to pivot.
"My hope for the book is that entrepreneurs and founders don't make the same mistakes that I made," Amy said. "When you're creating something new, or you're disrupting a known way of thinking, you're not thinking about how to structure an operating agreement or whether it's better as an LLC or S Corp. My advice is to take a pause and do a little bit of research."
Just start.Amy knows people who have been about to launch their business for 20 years. While it's scary to take the first step, she encouraged want-to-be entrepreneurs to just start.
"You get to make your own destiny," she said. "You're in charge."
Resources + Links-
Amy Cosper: LinkedIn
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Brian Thompson Financial: Website, Newsletter, Podcast
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Follow Brian Thompson Online: Instagram, Facebook, LinkedIn, X, Forbes
Brian Thompson, JD/CFP, is a tax attorney and Certified Financial Planner® who specializes in providing comprehensive financial planning to LGBTQ+ entrepreneurs who run mission-driven businesses. The Mission Driven Business podcast was born out of his passion for helping social entrepreneurs create businesses with purpose and profit.
On the podcast, Brian talks with diverse entrepreneurs and the people who support them. Listeners hear stories of experiences, strength, and hope and get practical advice to help them build businesses that might just change the world, too.