Starting a New Practice or Business: Building the Right Foundation
Starting a new practice or business is exciting, but it is also one of the most important times to establish the right operational and legal foundation.
Many entrepreneurs, understandably, focus heavily on growth and revenue. However, the reality is that successful businesses are often built on the systems, protections, and infrastructure created long before growth happens.
One important reminder for startups is that profitability often takes time. Depending on the business model, market conditions, and available capital, it may take time for operations to stabilize and for profitability to become consistent. That does not mean something is wrong—it simply means preparation you invest at the beginning matters.
Before opening your doors, there are several areas worth reviewing carefully.
Licensing, Registration, and Compliance
Depending on your industry, business owners may need:
- Professional licenses or permits
- Business registrations and tax IDs
- Sales tax registration for products sold within the business
For healthcare providers in particular, this can sometimes create confusion. Although professional healthcare services are generally not subject to sales tax, selling products within a practice—such as skincare products, dental products, or other retail items—may trigger additional tax and compliance obligations.
Preparing to Hire Employees
Many startup owners focus heavily on customers while unintentionally overlooking workforce requirements.
Before hiring your first employee, employers should ensure appropriate protections and systems are already in place, including:
- Workers’ compensation coverage
- Short-term disability coverage
- Unemployment insurance
- Payroll systems and employee onboarding processes
Having these systems in place will eliminate potential legal issues in the beginning and will create a stronger operational foundation, which often prevents larger problems in the futurer.
CREATING NECESSARY LEGAL DOCUMENTS
As you start your new business, it can be overwhelming to determine which legal documents are necessary. The list below outlines documents that are often important at the outset and can help protect the business as it grows, particularly when adding employees, contractors, or additional locations.
- Forming a legal entity (PC, PLLC, LLC, depending on jurisdiction) to protect the business
- Preparing documents for customers to sign, if necessary. For healthcare practitioners, this would include all patient consent forms, including HIPAA privacy notices, consent for treatment, financial consent and others.
- Preparing employment agreements, which may be for licensed individuals, clinical support staff, non-clinical staff or even contractors hired to help support the business in the beginning.
- An Employee Handbook that outlines the business’s office policies including what the business is obligated to provide pursuant to the specific requirements of that jurisdiction.
The more information you have before starting, the more prepared you will be for any potential issues or concerns that may come up as you begin your business.
Building Operational Systems Early
Many challenges business start-ups face are not caused by a lack of demand for the product being sold—they are caused by a lack of systems.
This includes:
- Payroll processes
- Time tracking
- Benefits administration
- HR documentation
- Financial tracking and reporting
Investing in infrastructure early often creates smoother growth later.
Managing an Aging Workforce: What Employers Should Know
At the same time businesses are launching and growing, the workforce itself is changing.
Employees are working longer than previous generations, and workers over age 55 now represent one of the fastest-growing segments of the workforce.
For employers, this creates both opportunities and responsibilities.
Age Discrimination Considerations
Under federal law, employees aged 40 and older receive certain protections against age discrimination under the federal and state laws.
This means employers must remain mindful throughout:
- Hiring decisions
- Promotions and compensation
- Performance management
- Termination decisions
- Severance agreements
The goal is not simply avoiding legal risk—it is ensuring employment decisions are based on legitimate business factors rather than assumptions. Understanding the applicable laws related to age discrimination is the first step to ensure that you or any of your employees are not in violation.
Disability and Accommodation Considerations
As employees work longer careers, employers may encounter situations involving the need for accommodations or health-related limitations.
This can create challenges because employers must balance:
- Business operations
- Employee performance expectations
- Legal reasonable accommodation requirements
One of the biggest mistakes employers make is assuming they understand an employee’s limitations without engaging in the appropriate process. Failure to do so can create potential legal issues for the business. Speaking with experienced counsel will help ensure that the business is following the law as it relates to this class of employees.
Planning for Workforce Changes
The reality is simple:
The workforce is getting older—and employers should plan accordingly.
Organizations should think proactively about:
- Workforce planning
- Succession planning
- Accommodation processes
- Documentation practices
- Training managers on employment issues
These conversations are becoming increasingly important as workforce demographics continue shifting. Addressing these issues early on can protect the business from potential discrimination, wrongful termination and other claims by the employees.
Final Thoughts
As businesses, workforces, and regulations continue to evolve, it’s important to build a business that can adapt and support your goals for the future..
The organizations that position themselves best are often the ones that remain proactive rather than reactive.
Taking time now to build strong foundations, review policies, and plan for growth can create significant advantages later, and assist in avoiding unnecessary legal issues for your business.