It is not unusual to find businesses closing down everyday, while at the same time other businesses seem to be expanding and growing. If you are interested in starting a business and staying in the game for a while, then you can put these tips into practice.
Raise a Capital
If you are not planning to personally fund your business, raise capital before you launch the business. The promise of money is never as good as cash in your bank account.
Understand the Place of Family
Be upfront with your spouse about the possibility of dependence when the business is not running so good.
If you have kids to not neglect them in pursuit of business, involve their well being as much as possible because if you become territorial about your business instead of involving family, you are guaranteed at least some friction.
praise and validate family members for caring Even when their suggestions are bad Putting aside your pride and having thick skin will help you make better business decisions and keep your interpersonal relationships healthy and strong.
Don't Get Too Excited About Profits
Money is coming into your business and you are (and should be) doing cartwheels. But do not forget that you will need to pay quarterly taxes to the federal government and your state on any profits made. Unless you are not going to owe any taxes for the year, you need to budget to pay taxes.
Depending upon your business structure, this could mean payroll taxes as well as income taxes. Many localities also base business license fees on how much money you make.
Paying Yourself
The most important start-up cost to consider is your own salary. Many business owners are willing (and expect) to work for free, or at a reduced salary while they establish their businesses. However, you will still have personal expenses and bills to pay outside of your business expenses. If you do not have personal funds set aside to cover months where the business is not bringing in enough income to pay yourself, you will quickly find yourself in a difficult place.
Have a Backup Parachute In Place
If you form a sole proprietorship you and the business are essential one legal entity. If someone sues the business, they can collect from you personally. If the business has debts - they are your debts.
If you start a corporation, you limit your financial liability, however, you could also be booted out of your own business if your board of directors rallies to fire you.
To protect your long-term personal and business future, be sure to research the various types of business structures to choose the one that makes the most sense for you. Just because your friend chose one type of business structure, does not mean it is right for you.
Factor in Feed back for improvement
The opinion of your "market" and their needs should be your priority it is the key to staying in business.
We hope you found this article useful, we are always open to feed backs.
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