Can you roll out of bed one morning and decide upon starting a small business? Believe it or not, many people have done it. They dream up a new concept, log on to a laptop and perform some research, and then purchase a web domain or make another preliminary move. It feels like magic in the beginning, but running a business will test your dedication to your new venture. Some companies may take form in minutes, and others will evolve over years of planning. You may not be given to risk-taking without proper planning, but writing a one-page business plan is often all you need to flesh out a business concept and begin testing it in the market.
It’s Funny (Or Is It?)
If you’ve already put down your coffee mug and begun to scratch your head, that’s understandable. The funny part about starting a business is that, for the lucky ones, the startup phase costs next to nothing. Some business owners find their first clients by chance. You might say to someone in passing that you’d perform a particular task for a lower price or with greater precision than someone else, and, before you know it, you’re committed to a new project. At first, it feels like you have just accepted a side gig. Once you get home, you realize that you could be on the road to full-time entrepreneurship. The reality of this new undertaking’s associated responsibilities could set in days or weeks later.
Take a Deep Breath
Of course, writing a business plan includes steps such as defining the vision and purpose of your company, estimating the initial costs for headquarters, inventory, equipment, and personnel, defining what you will sell, and establishing where you will market goods or services. There are more considerations, including the kind of business structure that will suit your goals, how to define the concepts of your business model so prospects will understand, and when to give your contacts the green light to start spreading the word about your new company. It’s really that simple.
Even for people who are meticulous in their work habits, there comes a point when they must take a chance and begin. Consider how you will access enough capital for the first phase of business ownership. For example, a pizza delivery service has to find a location and to purchase or lease food service equipment. This service also needs foodstuffs and packaging materials printed with its business logo. Other business owners, such as professionals offering plumbing or pressure washing, may already own their tools and therefore can begin working without delay. You may already own a vehicle and have the right work attire at home. Just create a schedule and outline a pricing structure for the first batch of clients.
Handle Your Money Wisely
At a minimum, you will want to go to the bank and open a business account. It is crucial to keep business funds separate from personal funds. This holds true even if you will deposit some of your personal cash into the business account to cover startup costs.
Choose a Tax Structure
Every state has its own rules for creating the tax structure for a new company. While your state may not have an income tax for businesses, per se, you might need to incorporate and register your business in the state. Under state law, your company might require certain licenses, insurance, and bonds in order to operate. For example, a lawyer cannot practice without a state bar license and many types of companies serving minor children must have all workers pass a background check and a fingerprinting process before they begin operations.
We’re here to help you determine the right tax structure for your business. Talk with us before you incorporate and finalize your financial accounts. If you hire experts in tax and bookkeeping services from the outset, you’ll feel more prepared as the revenue begins flowing into the firm. Otherwise, you might not have a good grasp of where the startup capital goes or how to project the break-even point. For details, please contact us today.