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Starting a New Business: Where to Start
Starting up a small business comes with many rewards. First, and most importantly, you make all the decisions for the company, so you answer to no one else. Secondly, you create the hours, so if there's a family function planned or an emergency that requires your attention you can be there. And third, your salary has no cap so you can reach new heights, and gain financial independence. Before saying goodbye to your day job, it's important to realize that the rewards don't come without risks. These include long hours initially and the need for capital to keep the business operational. Here's a list of some of things you will need in order to set yourself up for success.
An Idea
The first step involved in creating a business is to have an idea of a product or a service that a good portion of the public needs. It doesn't have to be unique in nature. In fact, your new business could mean acquiring an existing business, like buying a CPA firm, for example. Your business offering could come from one preexisting, so much of the heavy lifting is off your plate.
Money
Once you have an idea that you feel is something the public will want or can use, then you need to have the money to fund it. The amount of start-up money you need will depend on the type of business you intend to start. If your instance you operate the business out of your home through a website you would need money for the inventory and an internet connection. However, if you plan to drive your own rig as an independent truck driver you would need to find a semi-truck for sale and that can run upwards of $100,000 just for the truck.
Name of the Company
Selecting a name for your company can become a difficult task. You want to stand out from the crowd and achieve name recognition. Take the time to come up with a name that represents what you want the business to stand for and what will attract others to you versus others in the playing field. Once you have the name selected, make sure you register and trademark it.
Business Plan
You may have many ideas floating around in your head, however, until you transfer them onto paper you won't really know if your proposed business venture will make enough to keep you comfortable. A business plan gives you the numbers in black and white that are simply indisputable. It also lets you set short and long-term goals to keep you motivated.
The Business Entity
It's also important to choose the business entity. Are you going to be a sole proprietor, operating it on your own or will you have a partner? These are important decision that you need to make with each one having its advantages and disadvantages with regard to filing your taxes. If you are not certain as to which one to choose consulting with a certified CPA makes sense. The good news is that no matter which entity you choose, you can change it at a later date, should the need arise.
Making the decision to start a new business can provide you with many financial rewards. Just make sure to take all the necessary steps ahead of time to ensure that you have a product or service that the public will embrace.
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