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.