Running small, start-up business has its share of ups and downs. once I launched my company nearly nine years ago, running my very own small business has been both rewarding and challenging. it’s enabled me to determine the greater balance in my life as I even have reduced the executive burden that corporate America places on each of its employees and replaced it with longer spent on developing content for my clients.
Given the selection, running my very own small business is that the best choice on my behalf at this stage of my life. I can compute of my house, see my kid on a daily basis, focus my work effort on content, instead of administration, and yes golf a tad. That being said, I’m asked continually by others “what is it wish to be in business for yourself?” as they contemplate the leap from corporate to a sole proprietorship.
While it’s not for everybody, here are a number of the points of consideration that one should reflect before making the jump to starting your own small business:
One-Stop Shop: one among the advantages of being alittle business owner is that the autonomy of “calling the shots”. you’re the boss and clearly can steer your company as you see fit. Many think they relish this setup but actually when it involves being the self-motivator that’s required to achieve success – the “guy” to travel to – lots come short. Before you read any longer, ask yourself if you’re cut bent to be the “go-to guy”. If not, you’ll save yourself tons of time and frustration. Simply stay within the corporate world.
Develop A Business Plan: So, why is business planning so crucial? during a word, it provides “clarity”. Investing time to develop an idea provides precise clarification of the corporate vision. additionally, it provides a mechanism to measure the results of the business and provides the inspiration for future growth plans. within the end of the day, it enhances the corporate valuation through fiscal responsibility, which provides the story of opportunity to any future investor or employee. Business planning is a one-part strategy and one-part tactics – but where the sausage actually gets made is within the execution. Execution comes within the diligence necessary to hold out an idea and therefore the accountability for your activities by tracking them.
Understand Tax Burdens: no matter the political rhetoric surrounding the tax code and its impact on small businesses, the very fact of the matter is that these entities are levied with a myriad of taxes. I’m shocked by what percentage of budding entrepreneurs fail to know the taxes that tiny businesses pay. My company has essentially one of the simplest business operating models that alittle business can have. I invoice a couple of clients per month; receive a couple of checks a month; pay a couple of bills a month; and have little or no inventory and/or depreciation of capital assets. Despite that, my income tax return was 84 pages last year. Filing as an S-Corp, my outlay on taxes is between 25% and 39% of federal taxes; North Carolina state income taxes starting from 6.0% to 7.5%, Social Security and Medicare (twice as a matter of fact for employer and employee) of 15.3%, so nearly 50% of all income goes to taxes and costs.
Replicate Yourself: Given the very fact that you simply are a 1 stop shop, alittle business owners must replicate themselves wherever possible. Tools like social media and therefore the acceptance of telecommuting through online collaboration have enabled small business owners to be in many places on just one occasion. so as to achieve success, small business owners got to tap these tools to maximize their exposure to potential clients also as reaching customers outside of their immediate trade area. before these tools being readily available, my business was limited to the state of Illinois (where my company was originally based). Since I even have utilized these tools to duplicate myself, I even have had clients in thirteen different states.
Navigate Third-Party Challenges: alittle business owner wears many hats and relies on third-party entities for key alliances. When Go Daddy had its website and email server outage in September, roughly 5.3 million small business websites and emails were knocked out. Small business owners believe these support companies and sometimes, are held captive when issues arise. While my company doesn’t conduct tons of commerce via my website, many small operators lost online revenue thanks to the outage.
Be Wary Of Scams: Lastly, where there’s alittle business owner, there’s a criminal waiting to feed on the unsuspecting operator. In fact, this past week, I received a letter from a gaggle claiming to represent the State of Illinois. Having been in business for nearly nine years, I’m keenly conscious of all of the annual expenditures that my company pays. As an Illinois corporation (operating in North Carolina), I received a letter stating that I needed to send a $125 fee for my “Annual Minutes Records Form”. I didn’t recall ever doing this, and once I contacted my CPA, he shared the subsequent handout with me:
In short, starting and running alittle business could also be the simplest decision you’ll ever make. Having the facts beforehand of that call are critical to making sure that you simply are positioned for fulfillment. Once you fully vet your decision-making for starting your small business, the rewards are often amazing…