Whether starting your own business has been a lifelong dream or recent events encouraged you to try and monetize your unique skills and talents, there is much to consider before taking the plunge. While creating a business is relatively simple in terms of completing and filing forms, ensuring your success long-term requires greater planning.
Before you dive right into your new business venture, review the following tips to help you navigate the waters of business ownership.
1. Consider Moonlighting.
Moonlighting is a popular strategy for those contemplating starting a new business, especially if your company will operate in the services industry. The term refers to offering your services and skills during the evenings or weekends while continuing to work your current job.
It’s a smart move if you want to test the waters and make sure there is enough demand to sustain your business full-time. As you build up clientele, you’ll have the opportunity to work out any kinks in your business that may arise. Lastly, the income you generate while moonlighting can be saved and reinvested into your company when you launch your full-time business.
If your business plans do not come to fruition, you still have your day job and can meet your regular financial obligations.
2. Ask for Help.
When it comes to starting and running your business, there is no reason to go it alone. There are countless resources available for entrepreneurs, whether via the Internet or organizations within your community. The Small Business Administration and local Chambers of Commerce are great starting points.
If you have specific questions, many social media groups are dedicated to business owners that often contain experts in certain fields. These groups can be powerful resources and connections to add to your network. Plus, they offer education and insights that can help you launch your business.
3. Start Off Right.
While many online providers will help you create your new business in a few easy steps, seeking guidance from a professional is strongly recommended. It’s usually worth the investment to utilize the services of an attorney and CPA when initially launching your business.
- An attorney will help you decide which type of business (sole proprietor, limited liability company, corporation, etc.) is right for you and ensure the proper paperwork is completed with all required parties.
- A CPA (Certified Public Accountant) is one of the best resources for small businesses. Familiar with tax laws and wage rules, they will make sure your company operates legally, and all payments are made on time.
While you can use many fantastic accounting platforms to manage your business online, you should at least consider hiring a CPA to review your monthly financial reports and tax payments. Even an honest mistake can prove costly with Uncle Sam.
4. Getting Started.
While each state will have slightly varying rules and regulations when it comes to formally creating a business, the following are the steps you’ll want to take to begin the process.
- Choose the type of business you wish to create (sole proprietor, LLC, corporation, etc.).
- Register your business with your County Tax Collector. Obtain the required licenses and permits to operate your business.
- Register with the Department of Revenue (or similar department) in your state.
- Register your business with the IRS.
- Register your business with the Department of State if required to do so. This is often necessary for businesses that are corporations or using fictitious names.
If you’re working with an attorney to set up your business, they will typically complete these steps on your behalf.
5. Team Up with a Financial Partner.
Every penny counts when you’re starting and running a business. That’s why it is crucial to find a financial partner that does not nickel and dime you in fees when it comes to your business accounts. Likewise, you want to build a financial relationship with your institution in case you need additional services, such as business loans, down the road.
As your business grows, you want to ensure your financial partner is ready and willing to work with you by providing the tools and resources necessary to scale your company.
We’re Here to Help!
As your credit union, we’re ready to help you turn your dream of business ownership into a reality. As a member, you’ll have access to a wide range of tools, accounts, and financing options for starting your company.
Please stop by one of our convenient branch locations or call 800-782-4899 to learn more about how we can help you launch your new business venture.
Each individual’s financial situation is unique and readers are encouraged to contact the Credit Union when seeking financial advice on the products and services discussed. This article is for educational purposes only; the authors assume no legal responsibility for the completeness or accuracy of the contents.