Ahh, entrepreneurship. Everyone looks at the glitz and glamour of launching a business and believes it’s a celebrity life style. As you scroll through your timeline, you see your friends showing how successful they are, working on their own, and how great it is. Well we’re here to tell you all that glitter ain’t gold.
At Bradley Financial, we’ve noticed so many people are excited to START a business, but rarely have we seen people think through the process of making this come to fruition, the right way. Here are somethings to consider.
What should I be thinking about before starting a business?
For some, this may seem like a simple question, but realistically, this is pretty loaded. The simple answer is getting paid! The loaded answer makes you think the steps it takes to reach that point. Several factors come into play before even getting to this point. For instance, depending on how you want to structure your business (S. Corp, C. Corp, Sole proprietorship) has tax and legal implications.
Also, you’ll have to do some research on what business licenses you need to ensure you remain compliant with state laws to avoid penalties (paying more money). If you plan on selling a product, depending on what state your customer is in may have a different implication of how sales tax is treated. These are just a few factors that play into the beginning process. Here’s our recommendation:
- Connect with an accountant and lawyer to understand the tax and legal implications of classifying your business under certain business entities (S. Corp, C. Corp, Partnership, etc.).
- Understand the basic documents you will need to start a business.
- Begin keeping track of the actual cost it will take you to launch. You’ll need to do some research and look into, for example, how much it will cost to get a 1) business permit , 2) business license, and 3) cost of incorporating your business.
Depending on what kind of business you are planning to get into may cost you more/less than someone else. Thinking through A) what it will cost and B) what it takes to get started are key fundamentals in establishing a business. Get the wheels turning in your mind, because once you start, the business is alive!
“Ok, I know what I need to do, what’s next?”
Once you have a general idea of what you need to get started, now it’s time to put the wheels in motion. Here’s what we recommend:
- Establish a business bank account – we cannot stress enough the importance of separating business from personal. This step alone will save you money.
- Open a business credit card account – this puts you on the path of establishing business credit, which will be of aid later down the road if you need to seek financing in scaling your business.
- Open business trade-lines – there are several businesses that offer the option to make purchases on credit, which is another great way to establish business credit.
“Ok, Great! Done. Now what?”
Now it’s time to get out there and build your business. One important thing to keep in mind is, as humans we weren’t built to be great at everything. As your business grows, at some point you’ll need help. You may not be solid in marketing, or negotiating pricing with potential clients, but you may know someone that is good at that.
The best thing you can do is network with others and rely on their skill-set to help you grow your business. Look for a marketer, so when the time comes you can lean on their skills to increase your brand reputation. Connect with a lawyer that’s savvy to the legal intricacies of your industry. At Bradley Financial, our skill-set lies in the finances. As the saying goes – it takes a village to raise a child; this goes for business as well.
If you didn’t know, business never sleeps, and as an (aspiring) entrepreneur, business will always be on your mind. It’s a living breathing organization and depending on how far you are willing to go, your business can have a great impact on society. At Bradley Financial, our client’s situation is constantly on our mind. We can’t get enough of helping them. Why? Because we know they need our help and we are striving to do as much as we can. What’s crazy about this world is there are others out there that always need our help. This goes the same for you and your business.
We believe you’re of this same mindset, and that’s why it’s imperative you come out the gates doing everything the right way so you can have a peace of mind in doing business with others. Feel free to contact us if you have any questions!
