Sunday, March 6, 2011

8 Quick Tips For Starting a Small Business

Everyone says that it is easier to be your own boss. How to start your own business has some foresight and planning.

You may eventually want to open a garden store, or sell antiques? Have you seen the perfect place for your small business, and you have little capital to work? Not so fast. You have to plan things a bit before jumping in with both feet. With a little extra time and extra phone calls the chances of success will greatly improve. Consider these tips for starting a small business :

1. Business Organization :-
You have to form a business organization. Will it be a corporation? If so, what type (S-corp? C-corp?) An association? A limited liability company? A limited liability company? There are different tax implications for each of them, and it would be best to consult an accountant and / or attorney. You need to have on board anyway, when its time to do your taxes.

2. File the necessary paperwork with the state and the IRS :-

Once you decide what the organization that you will actually submit to the state for legal recognition. Then, you must file an application with the IRS for an EIN (Employer Identification Number). Yes, there is a lot of filing to be done. You have to be constituted before a bank can lend money, or a landlord may enter into a lease with you, so this is the next critical step. Get it done as soon as possible.

3. Local zoning codes of research to make sure it can work where you want :-
Before you begin negotiating a lease with a potential owner of a kennel (for example), be sure to check local zoning regulations. Often, trade regulations can be restrictive. Some applications may require a conditional use permit (a discretionary permit can be difficult to obtain), or may be prohibited altogether.

4. Obtain the licenses required by the State and / or city.
Running a salon? Day care center? You need state licenses. Make sure you get the annual renewal, too. Other operations will require licenses from local businesses. Look in the front of the phone and call City Hall.

5. Have you determined the demand for goods or services you will sell? If so, will have a competitive price? This will be taken into account when overloading and taking into account the start-up costs (legal and accounting fees, rent, employee salaries, supplies, etc) For example: San Jose Real Estate business.

6. Do you have the best location?
Perhaps the proposed rent is a little high, but the main entrance will be in a busy area your potential customers will notice. Are there advantages and disadvantages that may apply in negotiations with the owner to help reduce the overall costs of monthly rent?

7. Need a loan to do the things?
If so, there are many financial institutions willing to lend in certain circumstances. You have to prepare a business plan and has really done their homework. See above for each of the factors listed above. The best you can do, the more likely to receive a bank loan. A reasonable request, on reasonable terms, without much risk will be better received by the financial actors. Show them the probability of success. They want to share their success.

8. Despite the above, do you have the time to invest in your dream? For a small business running is much more than a "regular" 40 hour work week. Some people estimate that at least twice. You can not do this to one side.

From a small business is not impossible, but requires painstaking work and foresight. Go through these tips, do some research and consult experts. I wish the best of luck!     

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