Starting Your Own Business
Starting 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.

View the Business Plan Outline
First things first, start with a business plan. Here is a guideline for a business plan. (Adobe Acrobat PDF)

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.

Sole Proprietor

  • Easy to set up and maintain.
  • Few tax benefits, owner is personally responsible for all business debts.

Partnership

  • 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 and maintain.

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:

  1. Your need for capital
  2. Your type of business
  3. When you want to start your business
  4. Your ability to finance your business
  5. The number of people involved in the business
  6. The liabilities and risk you are willing to assume
  7. Your personal tax situation
  8. Your plan for taking money out of the business
  9. Your plan for continuing the business if something should happen to you
  10. 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.