You have decided to be an entrepreneur. You want to start a
business because you want be your own boss, take risks and
assume total responsibility. After a careful analysis of your
skills and goals in life, you know that you have it in you to
become a successful business owner.
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So you begin to explore your capabilities, interests and
resources and decide on the kind of business. You find that
there is a good market for your business, and the existing
demand can sustain your operations. To help your entrepreneurial
course, you prepared an excellent business plan that attracted
investors for your business (well, you can always call your
family and friends as investors).
You now have a business plan, funding, and you're ready to
roll. But wait; there are still a number of things to be done. Here
are some tasks you need to do prior to putting that "Open
for Business" sign
1. Review local business orders.
You definitely do not want
to start in hot legal water. Before you open your business,
check your zoning ordinances. If you are starting a home
business, you generally have nothing to worry about, unless you
have employees wandering in and out, and generating traffic or
parking problems in your neighborhood. Call your county's clerk
office or local chamber of commerce to get information on the
proper board or commission to contact for zoning laws. Also run
a quick and thorough check for potential infringements and if
anyone else is using the business name. Do this before you spend
any money on advertising, business cards or stationeries, or
signs.
2. Get your business cards ready.
It is wise for a start-up
to pay the lowest price to get the quality you need. It doesn't
mean buying the cheapest. Rather, it suggests that you look for
the quality that fits your business needs. If you were selling
Web design services, you would want a card that projects
creativity, quality and professionalism so it is best for you to
pay more for your cards. However, if your business is worm
farming, you could probably use the cheapest cards you can find.
There are several resources on the Internet to help you
create and purchase business cards:
- Vistaprint = offers free business cards and you need to pay
only for the shipping cost. Quality is good with a number of
design choices available.
- Kinko's = the printer specialist
allows you to customize perfectly matched business cards,
letterheads and envelopes. Their LiveDesigner tool allows you to
design your cards depending on the image that you want to
project (e.g. contemporary vs. traditional). Prices range from
$0.26 to $0.06 per card.
3. Line up suppliers.
Finding the right supplier is one of the important start-up
decisions you will make for your new business. Establishing
supplier relations is crucial to ensure efficient production and
inventory management system, as well as smooth financial flow.
Here are some tips on finding and working with the best
suppliers: - Seek advice from professionals. If you're looking
for computer equipment, ask a computer consultant where to get
savings on software. - Split your business between suppliers.
This option often brings savings to new entrepreneurs. Try to
get several suppliers for your different needs. - Buy only what
you need. Avoid being talked into buying extras that you do not
really need. - Always ask for a professional discount. Some
suppliers do offer discounts, and you wouldn't know until you
ask. - Use the Internet. You can get great savings from surplus
auction shops, government auctions and liquidation stores on the
Internet.
4. Get furniture and
equipment.
As owner of a start-up
venture, you do not need to spend money on designer furniture,
top-of-the-line computer equipment your business does not really
need, or a home office created by an expensive decorator. The
goal in buying furniture and equipment is to make you and your
clients feel comfortable in your place of work, allow you to
save time and increase your productivity. Know the difference
between "success spending" and "trappings of
success spending." Reward yourself with a high-end mahogany
office system only after you had a really good year. Visit the
following sites if you are buying furniture and equipment:
Furniture Find, Staples, IBM and Hewlett-Packard.
5. Investigate the option of leasing. The lease-versus-buy
decision depends on your personal preferences - whether you are
more comfortable owning or if you prefer to rent. Leasing can
save you some dollars if: · You need 100 percent financing. ·
You live in a state with high taxes, as you do not pay sales
taxes on something you lease. · You really need to protect your
cash, given that a typical lease only requires a month's payment
up front and no down payment. · If you expect to upgrade your
equipment quickly, leasing is the way to go. · If you will be
forced to depreciate your equipment, leasing allows you to write
it off faster.
6. Obtain business license or
permit. Without the proper
permit, you can run into trouble. More so if your business
begins to annoy your neighbors, particularly if your business
generates too much noise or pollution, and you store materials
on your yard. The need to have a business license or permit
varies from state to state and from location to location.
Registration is required if your business is a partnership or
corporation, while some occupations require a permit or license.
Typical occupations that require a license or permit in your
locality include beauticians and barbers, restaurant owners,
employment agencies, pawnbrokers, florists, insurance agents,
among others.
7.
Get requisite identification number. These include federal
employer identification number, and state employer I.D. number
(if applicable). For a home-based entrepreneur, you can opt to
use your social security number as the federal ID number for
your business. However, if you want to present a more
professional image, you can get a separate employer
identification number (even if you do not have employees). You
will need to file Form SS-4 with the Internal Revenue Service.
8. Know federal and state tax requirements.
Learning about
the tax laws that will affect your business before your
launching date can save you a lot of headache before the tax
deadline comes. Send for the tax forms and study how what taxes
you need to pay, the supporting documents you need to have, and
the tax deductions you possibly avail.
9. Join a professional organization. The adage "No man
is an island" applies to self-employment as it does in real
life. Being part of an organization or group allows you to
network, meet new contacts, expose your business, learn industry
news, find a support group, or even find a mentor. For solo home
business entrepreneurs, this is an important excuse to go out of
the house and connect with others in your field. The money spent
on joining professional organizations will be repaid in terms of
better referrals, better contacts and better knowledge. Right
from the very beginning, you need to plan how and what
organizations you and your business could benefit from. Then
sign up and be active!
10. Set a starting date. You are now ready to rock and roll!
Decide whether you want to start your business with a whimper,
or with pomp and pageantry. Many businesses benefit from
pre-selling it to the market. You can use word of mouth,
starting with your own circle of friends then to your
acquaintances, and requesting them to spread the word about your
new business. Think of cost-effective marketing strategies to
create awareness for your business. If you have a Web site or
launching a new online business, you can announce your new
business through the following:
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