Joel Spolsky of the always-excellent Joel On Software has a new article up on Inc. Magazine’s site. He interviews Jessica Livingston (founder of a group of Angel Investors) regarding why start-ups fail.

Paul Graham, Jessica’s husband and partner in Y Combinator, has tackled this subject on his website. “The biggest reason founders stop working on their start-ups is that they get demoralized,” he writes. “Some people seem to have unlimited self-generated morale. These almost always succeed. At the other extreme, there are people who seem to have no ability to do this; they need a boss to motivate them. In the middle there is a large band of people who have some, but not unlimited, ability to motivate themselves. These can succeed through careful morale management (and some luck).”

Of course it is easier to stay motivated when you don’t get bogged down in the often confusing process of setting up your company properly. Clients utilizing MyNewCompany.com’s Formation Services don’t have to worry about this. We take the hassle out of starting a company and give you the peace of mind of knowing that you have done everything correctly during the start-up process!

BusinessPundit has a useful roundup/ review of web-based applications and tools HERE.

Whether you are running the finances of a one man band or a small but growing business, managing your finances is both critically important and immensely boring. Luckily there are some easy ways to manage your cashflow, invoicing, expenses and taxes online.

The always-worth-reading Seth Godin has a post about how the natural instinct for everyone during a downturn (recession, depression, whatever you call it) is to start hiding, cut back, give up. He thinks, in fact, that many businesses are hoping they can hide – not having to do the hard work.Â

He says:

Growth is frightening for a lot of people. It brings change and the opportunity for public failure. So if the astrological signs aren’t right or the water is too cold or we’ve got a twinge in our elbow, we find an excuse. We decide to do it later, or not at all.

Then goes on:

Inc. magazine reports that a huge percentage of companies in this year’s Inc. 500 were founded within months of 9/11. Talk about uncertain times.

But uncertain times, frozen liquidity, political change and poor astrological forecasts (not to mention chicken entrails) all lead to less competition, more available talent and a do-or-die attitude that causes real change to happen.

If I wasn’t already running my own business, today is the day I’d start one.

MyNewCompany.com was founded in October of 2001, one month after the 9/11 attacks – we’ve been profitable for 8 years running. Don’t use the recession as an excuse not to start or grow a business – in fact, now is a great time; everyone else is scared and now is the time to strike.

BusinessWeek.com has a post explaining how getting an FEIN (Federal Employer Identification Number) is not only required for Corporations and LLCs, but can also help keep your Social Security Number confidential when you file a DBA.

You’ll also have to obtain an EIN if you decide to form a different business entity, such as a corporation or limited liability company. If none of those apply, then you can use your Social Security number as your taxpayer ID. Some business owners prefer to use an EIN, even though they are not required to, just to avoid using their Social Security number, says Lisa Schwartz, with Mitchell & Smith in Camarillo, Calif.

MyNewCompany.com can prepare your FEIN Application and/or obtain an FEIN on your behalf as part of our Business Formation Services!