and managing a business takes motivation, desire and talent. It also
takes research and planning like the game of chess; a successful small
business starts with critical and correct opening moves.
One of the first moves is to make a list of
reason of why you would like to go into business. Some of the most
common reasons for starting your own usiness are:
- You Want To Be Your Boss
- You Want Financial Independence
- You Want Creative Freedom
Next, explore your ideas for a new business.
Individuals who have worked in the same field tend to have prior
knowledge, which is helpful in their new business. You may wish
to turn a hobby or interest of yours into a business. Secondly,
any specialized knowledge or skill can be turned into a business.
Other important decisions you will make are
how to legally structure your business. There are advantages to
each form of organization. The structure you choose will determine
how much personal liability you will incur, and how you will be
able to raise money. The type of legal format you choose will depend
on the following factors.
- Easy to set up and maintain.
- Few tax benefits, owner is personally responsible
for all business debts.
- Easier to establish and register than a
corporation; filing tax returns is easy.
- Partners can be personally liable for business
debts and liabilities, such as a legal judgment.
Corporation- C Corp.
- Shields personal assets from business debts
and liabilities and offer tax benefits.
- Can be complicated and expensive to establish
Corporation – S Corp.
- Benefits Corporation that wants a simpler
tax structure that passes through income to owner.
- Many of the tax benefits now are available
through Limited Liability Company with fewer restrictions.
Limited Liability Company- LLC
- Provides benefits of corporation, but less
complicated to set up and maintain.
Here are some other
factors you may need to look at:
- Your need for capital
- Your type of business
- When you want to start your business
- Your ability to finance your business
- The number of people involved in the business
- The liabilities and risk you are willing
- Your personal tax situation
- Your plan for taking money out of the business
- Your plan for continuing the business if
something should happen to you
- Your long-range business plan
For these and more great ideas read these following books, Steps to Small Business Start-Up by Linda Pinson & Jerry Jinnett and Starting Your Own Business a Business Start-Up Guide No. 1811 or drop by the Small Business Resource Center at 1101 East 33 rd Street, Suite C307, Monday through Friday 9:00 a.m. to 4:00 p.m.