It’s fun and enjoyable to be your own boss and make your own decisions. However, before quitting your job and selling soaps from your truck’s tailgate (or whatever your personal passion is) here are 5 things to think about before starting your own business:
Step 1: Research
Find out whether or not your product will sell. Look up your competition and see how well their items are profiting.
Check back daily to their stores or websites to see if their inventory has diminished at all. Also, check available domains to see what your options are.
Who is your competition?
If there is no competition, why isn’t there any competition in this business?
Does this mean that there is no demand or that the demand isn’t being met?
What location will you use? Is this going to be an online only store or will you have a storefront?
These are all important questions that you need to find the answers to before you invest your hard earned money and precious time.
Step 2: Make a Business Plan
Collect and organize all of the important information about your business.
Things to consider include general company description, what products you will sell, or service’s you will provide.
Strategize your marketing plans, daily operations, how your company will be structured, and a model of your financial plan.
A business plan is a must have for all businesses and will be necessary if you need financing- banks or investors will want to look it over. By doing this, you will impress them by having it ready on the first meeting.
Step 3: Planning your Finances
This is the time to think about where your cash flow is coming from and how you are going to be distributing that money in your business.
Generally, a large initial investment takes time before turning a profit.
You will need to look into start up costs, which includes licensing, permits,equipment, construction, legal fees, branding, store inventory, property, and employee’s salaries.
As well, don’t forget about or neglect your own salary.
Some people say you can’t pay yourself until your company turns a profit. However, that is terrible advice. No one can afford to live for free!
For your sanity, you need a set salary for yourself. Otherwise, how are you going to pay your own bills if you don’t have an income to do so?
Step 4: Chose a business structure
Decide if you are going to be a sole proprietorship, a partnership, a limited liability company (LLC), or a corporation.
The reason you need to decide this is because it will impact your business name, your legal liability, and your taxes.
Step 5: Filing for an employer identification number (EIN)
You can go through the process with the IRS yourself, even though we all know how fun government paperwork is.
It’s a long tiring process filing for an EIN form.
BUT (insert ray of sunshine) there are companies who take all the guess work out of it for you and speed things along. They make it easy to apply for ein online.
They do this everyday and know all the ins and outs.
They can also get most new merchant applications approved in 24-48 hours.
Now that you have a place to start go for it!
Enjoy your new business.
Be your own Boss.
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