Unanswered questions keep every business owner up at night. But the isolating experience is more universal than many think. Here, Novo’s team responds to the questions owners have grappled with as they’re building their operations — and our honest answers are informed by years of concerns, stories, and lessons from our 250,000 customers.

1. “Is it normal to struggle to know if you should be an LLC or an S-Corp?” —Chasty Wilson, co-owner, HVAC-R repair and refrigeration service in Douglasville, Georgia

What Novo knows: This is a question every independent business owner has at some point. And there’s never an easy answer: The benefits of being an LLC versus an S-Corp vary significantly based on your business size, needs, employee structure, and even where you live. (Sorry, New York City folks, the allure of S-Corp tax savings don’t apply to you, just another brutal reality of the cost of city living.) Check out our breakdown of the various business structures for independent business owners and choose what makes sense for you — not what’s trending or what VC-backed startup is trying to convince you of on Instagram.

2. “Are our margins normal? Because of our quality materials and U.S.-based manufacturing, and the fact that we’re a D2C brand, our margins are very different. I’ll see other product-based companies on Shark Tank, and they’re like, ‘I have a water bottle, it costs me $1 to make it and I sell it for $39.’ That is not my margin. I’m always desperate for a 1:1 comparison.” —Nikki Benbenek, co-founder and CEO, Blueberry and Third kids’ furniture brand in Ashburn, Virginia

What Novo knows: A 97% margin sure sounds nice, but is definitely not the reality for most owners. Even big brands in the toy category like Mattell and Funko report gross margins closer to 46% and 42%, respectively. For a D2C brand with premium materials, sitting between 40-70% gross margins (before all your steep operating costs!) falls beneath the “normal” umbrella.

3. “The big questions that keep me up at night aren't always operational, they're existential. We're building a global brand in a global economy that feels pretty tenuous right now. How [could] that volatility ultimately reshape our expansion plans?” —Price Latimer, co-founder and chief creative officer, Alkemis clean-paint manufacturer in San Antonio, Texas

What Novo knows: This is a question I wish we could help our customers with, but you know your company and your own risk tolerance better than anyone else. Markets will always swing, and you’ll never be able to control the macro environment. What you can control and utilize is the feedback you get from the community you’ve built and the customers who trust you. Trust your own data, metrics, and learnings before you make a move based on anyone else’s experience.

4. “Is this contract normal? How do you define and charge for your services? We’re a hotel brand that offers management services; what are our intellectual property terms of our name, since we’re lending the brand identity to each property? If this investor and owner sells the property in five years, where does the brand name Dear Valentine go?” —Melissa Shelton, co-founder, Dear Valentine hospitality development and management company in New Orleans, Louisiana

What Novo Knows: That’s a tough one, and while we know about finances, we’re not going to pretend to have a law degree. You’re smart to be thinking about all the ways you can and should protect yourself and your brand. It’s good to ask yourself these question — next step, lock in a contract attorney that can provide trusted advice as your business grows and expands its partnerships.

5. “Is it normal for this phone to not be ringing?” —Chasty Wilson, co-owner, HVAC-R repair and refrigeration service in Douglasville, Georgia

What Novo Knows: Unfortunately, yes, but we bet it will ring. Everyone’s business ebbs and flows — especially seasonal repair services like what you offer — and it’s about managing and preparing for expectations. Check out some of our resources on business budgeting and how to pay yourself (even when income is inconsistent).

*Novo Platform Inc. strives to provide accurate information but cannot guarantee that this content is correct, complete, or up-to-date. This page is for informational purposes only and is not financial or legal advice nor an endorsement of any third-party products or services. All products and services are presented without warranty. Novo Platform Inc. does not provide any financial or legal advice, and you should consult your own financial, legal, or tax advisors.