In the Money: Becoming an Entrepreneur
Entrepreneurship is on the rise and can be an applied to just about any area. However, you want to pick a field to work in and start a business there. Start a business that will not only be successful because of its niche but will also be something that you are passionate about. Entrepreneurship is hard work, so focus your attention on something you care about.
If you want to start a business but do not know where to start do not worry because you are not alone. No matter what the motivation is to be your own boss, you can start at any time.
Here are 11 tips on how to get started:
Create a business plan: a business plan will help you gain clarity and focus. You should have information about what you want your business to be, how much you want to spend and what your goals are. There are many business grants available, especially for minorities and many of them have restrictions on how old the business (based on business filing date) can be for them to give the grant, so proper business planning is key. You can start by asking yourself the following questions:
What am I building?
Who will I serve?
What are my objectives and strategies to achieve my goals?
How will my business be funded?
Register your business: you can determine what type of business structure you want. This can be a sole proprietorship, limited liability company or a corporation. The business structure you choose will impact many factors from your business name, to your liability and how you file your taxes. Do your own research and pick the best business structure for you. You may also need to register trademarks, copyrights or patents to protect your content.
Federal Tax ID: an employer identification number (EIN) will identify you, your business accounts, tax returns and documents even if you have no employees. When filing tax documents, payments and related correspondence it is important to use this number. You can get one for free by visiting the IRS’s website.
State Tax ID: in order to legally sell something you need to have a sellers permit. A permit allows you to collect sales tax and work with wholesaler vendors should you need to. Check with your particular state to get information on this. Depending on your state you can even get a sellers permit for free!
Business checking account: it is a good idea to separate your personal assets from your business assets in case of litigation. Additionally, when the assets are separate you will be able to clearly see what money is for business use which will allow you to do the accounting for your business more efficiently. If you want to open a bank account for your business, you will need to have a certificate of organization and your company’s EIN.
Establish a business phone number: whether you use a cell phone, landline or VoIP you want to make sure you have a separate number for your business and in your business’s legal name. Having a separate number can protect your privacy by making sure your personal phone numbers are not exposed to the public. One cost effective way to do this is to use Google Voice or you can get a 1-800 number it is all up to you and what best suits your business needs.
Business address: you can get either a virtual mailbox which is a digital mailbox service that you can access via computer, tablet or smartphone or a UPS address. These are real U.S. street addresses where you can receive, forward and pick-up or discard packages and mail. When you register your business the address becomes public, if you have a business address you can safeguard your private address while still making sure you receive important packages and mail.
Start a website: no matter what your niche is or where you are located in the world it is important to start a website for your business. Define your audience and pick a domain name that represents your brand. You should also carefully consider your website hosting (GoDaddy, Weebly or HostGator) and website builder options (Wix, Squarespace or WordPress) as a good hosting platform and website builder is essential for solid business performance, some website builders even come with hosting integrated already. You can even find a sponsor for your website and get paid for your content!
Build business credit: open a business credit file with the business reporting agencies (Dun & Bradstreet, Equifax and Experian). You can get a DUNS Number from Dun & Bradstreet for free. A DUNS number (important for contracts and grants) is a nine-digit number used to identify each physical location of your business. You may also want to obtain at least one business credit card that is not linked to you or any other owners personally. Pick a business credit card from a company that reports to the business credit reporting agencies.
Packaging and shipping: if you are starting a business that requires shipping (USPS, FedEx, DHL or UPS) you will want to think about packaging and shipping. Designing your own packaging can add a nice custom touch to your product(s) and you can even thank your customers by putting in a hand written note. Some other suggestions for packaging could be the use of poly mailers and personalized tissue paper. When thinking about packaging (boxes, bags, tissue paper or poly mailers) and shipping (delivery times - regular vs. express) factor in how much you are willing to spend because you do not want to add too much cost to yourself or potential customers.
Marketing: there are a million ways to grow. You can use social media (Facebook or Instagram), ads or an e-mail list. This will allow you to reach your target audience and provide them with the services or products that they want.
You should now have enough information to be well on your way to becoming your own boss! Please note there are several websites out there that can help you with all of this such as, LegalZoom but if you are willing to do some of the legwork yourself you can save some money. Finally, you are not alone and may be surprised by how invaluable your friends and other personal contacts you have at your fingertips are so do not be afraid to reach out to them!
Disclaimer: this is intended for informational purposes only and should not be construed as personalized investment, legal or financial advice. Please consult your investment, legal and financial professional(s) regarding your unique situation.