Starting
Your Own Business:
What Does It Take?
How
many times have you, or someone you know,
said something like "I've always
wanted to have a business of my own. Something
I'd really enjoy doing. Be my own boss."
Lots of
people have the dream, but they get bogged
down in the details of how to go about
it. While this article isn't meant to
serve as a complete business start-up
guide, it will give you an idea of some
of the steps involved in starting your
own business.
1. Hire
Professionals
The most important professionals you'll
need at the beginning are a lawyer and
an accountant. The lawyer can help you
decide if you want to be a corporation,
partnership, sole proprietorship, or some
other type of company. A good accountant
can help you make this decision based
on which will be most advantageous to
you from a tax angle. A lawyer can also
help you register your business and get
any licenses and permits you will need,
and can advise you about patenting your
idea or protecting your intellectual property
by requiring everyone you discuss your
business with to sign non-disclosure or
confidentiality agreements.
2.
Make a Business Plan
You may need to hire a writer or other
business professional to help you write
a business plan. You'll need one to help
yourself get organized as to what your
business's main purpose or goal will be.
This could be anything from serving hot
dogs to people outside the home improvement
store to providing technology support
to major players in the business world.
Either way, you need a plan that sketches
out how you will proceed toward your goal
and an estimate of how much money you'll
need to get there. What will your equipment
costs be? Will you be hiring employees?
How about renting office space? All of
these cost estimates should be included
in your Business Plan.
3. Get
Financing
How much start-up money will you need?
Do you have savings you can use? Friends
or business associates who might want
to invest in your venture? Or do you need
a bank loan? Whatever the situation, you'll
need to present a copy of your business
plan to bankers or investors if you need
to borrow money to get your company rolling.
4. Set
Up Your Record-keeping System
A good accountant can advise you on the
best record-keeping software for your
business, and help you set up a system
for keeping track of payables, receivables,
sales tax, payroll, employee benefits
plans, and so forth. You will be relying
on the accountant for at least your yearly
tax return for your business, and possibly
for quarterly payroll and sales tax returns.
Your accountant can also get you an EIN
number (Employer Identification Number).
5. Find
a Location
Depending on your business, location may
be very important. If you need to be visible
to the public (say your business is a
bookstore or restaurant), then you'll
have to think long and hard about where
you should set up shop. Location can make
you or break you-and the rent is due no
matter which way your fortune turns. You
will also need to get a phone, get the
utilities turned on, install your furniture
and equipment, and get a sign or two that
shouts "Hey look! We're here!"
6. Set
Up Accounts with Credit Card Companies
Every brick-and-mortar business these
days takes plastic or they don't stay
in business. You'll pay a small percentage
for every credit or debit card transaction
a customer makes. You will need to invest
in a method for checking the validity
of debit and credit cards-like those "Slide
Card Here" machines at cash registers
everywhere.
7. Hire
Employees
You may not need to do this step if you're
a one-person operation. Maybe you can
get by with just one part-time person
to answer phones and do some of the paperwork.
Of course, it depends on your business.
You can probably run a small bookstore
by yourself, but even a tiny restaurant
means you'll need a cook, several servers,
someone at the cashier, and so forth.
You'll need to have them complete various
forms for the IRS, and you may want to
run background checks or at least check
some references before you hire anyone.
8. Promote
Your Business
Decide how you will let people know you
exist, what you can do for them, and why
they should come to you instead of someone
else. Common forms of advertising are
TV and radio commercials, newspaper ads,
flyers, and coupons that appear in booklets
distributed by local companies.
The
list above might make you think twice
about starting a business of your own.
Perhaps you aren't looking to make such
a financial commitment regarding the hiring
of professionals, finding a location
And it's also a big, big risk.
But let's
look back at the way this article began:
"I've always wanted to have a
business of my own. Something I'd really
enjoy doing. Be my own boss."
YOU
CAN! Without all of the headaches of traditional
business.
There
is a very simple way of attaining this
goal that has worked well for millions
of people. You can have your very own
business in your home, and you can cross
off all or most of the steps listed above.
The best part of exploring home-based
business opportunities is that there is
little risk and the
upside is tremendous.
Many of
the inconveniences and pressures of the
traditional business are wiped away with
the home business. The biggest roadblock
to starting or buying a business is that
they require a considerable up-front cash
investment. In addition to the large investment,
the time commitment you must make when
starting a business can ultimately turn
out to be far greater than what you have
experienced in any job, and the return
is not necessarily worth the extra time
or the financial risk.
There
is another option.
Fill out
the form below, and I will provide you
with additional information about the
opportunity that is truly shaping my life
and allowing me the freedom to live out
my dreams without all of the headaches
and costs of traditional business.