This week’s blog is actually a re-post of a blog I did some time ago. I have come in contact with quite a few new peeps and I wanted to be sure that you (new peeps) understand and take the proper steps to building a business. I made a few changes so I hope those of you who have read it before enjoy it just as much now as you did the first time.
So your geared up to start you own business. You have come up with the plan of all plans; so what’s next? Plan, Prepare AND Prosper! Every day people come up with great business ideas but let’s face it – they are not all meant to be successful business owners. Some people are meant to be employees. Now don’t get me wrong; there is nothing wrong with being an employee. You just need to know where you fit in within the universe – the front office (as a business owner) or the back office (as a non-business owner).
If you are meant to be in the front office then I want to make sure that you set up your front office properly. Don’t start your business and set it up to fail right from the start. Take the time to do these 5 things or your business will be doomed for failure. These 5 tips are only half of what needs to be done but hey some is better than none right. Once you finish these five steps, check back with me for the complete list. Here goes…
- Know what type of business you want to run. Before you do anything else, you need to know what type of business you are going to run. And by that I don’t mean the products and services your business will offer. I mean HOW are you going to operate – as a limited liability company (LLC) or as a corporation. Will you be the sole owner or will you have partners? These questions are important in helping to determine the necessary forms you need to file to establish your company as a business.
- Register with the IRS. Once you have determined the type of business you want to operate you need to obtain a federal identification number with the IRS. If you have done step #2 already, you can properly answer the questions on the federal identification application. These questions help establish your year end and the type of tax forms that need to be filed annually.
- Register with your state. The next step is to register your business with your local state office. Just like establishing your business with the IRS, this also will help you understand what state filings you need to maintain. In addition, in most if not all states, registering with the state allows you to ensure that you are the only business in that state operating under the name you chose for your business. You don’t want to be using a company name that already has a reputation, especially if it is not a good reputation.
- Run your business like a business. There really is not much to say to this. If you want to be a successful business owner you have to act like a successful business owner; dress like a successful business owner; and talk like a successful business owner.
- Open a separate business bank account. One of the BIGGEST mistakes new business owners make is to not set up a separate business bank account. Co-mingling the company funds with your personal funds is a big NO NO! Yes it’s all your money, but not only will you be putting your personal assets at risk but you also will not be able to ascertain how much cash your business is really earning and spending. This is because in most cases, if the business owner is co-mingling their funds, they are also NOT maintaining good accounting records.
When you started your business, what steps did you follow? Which ones did you skip and go back to later? I would love to know.
To get the remaining five steps visit www.Empower2Thrive.com for your free download.
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