16 tips to Succeed!
Here are 16 ways to set yourself up for success in your new business!
Are you thinking of owning your own business?
Opening your own business is exciting and thrilling. Everything that comes after the excitement and thrill have worn off dictates whether a small business will make it. Although it's up to you to maintain and stretch out the "thrill and excitement" period forever, a methodical action plan is needed to fulfill your dream or goal of being your boss and running a successful business.
Success lies in the approach you choose to take and in avoiding some of the common pitfalls of a new business. Here are 16 things to include in your new business action plan!
1. An initial business plan to clarify your marketing, management, and financial goals.
2. Determine your start-up capital needs.
3. Identify sources of start-up capital and backup sources if needed.
4. Evaluate and quantify your borrowing power so you know how much money you can get your hands on if needed.
5. Select a business structure that best fits your needs by evaluating tax advantages, legal exposure, ease of operation, and portability should you relocate.
6. Select the right accounting software by evaluating your budget, needs, and hardware.
7. Prepare a Cash Flow Budget to know precisely how much money you need to keep the business alive each month for the first few years. Unplanned cash requirements are always emotionally painful.
8. Establish billing and collection procedures to maximize your cash flow.
9. Establish procedures to monitor and control costs.
10. Set up a home office to maximize your tax deductions.
11. Prepare and file all required state and local licenses and permits.
12. Prepare and file your application for your Federal Employer Identification Number.
13. Provide payroll and payroll tax filing when you bring on your first employee.
14. Comply with employment laws, so you don't get hit with fines and unhappy employees.
15. Identify your business insurance needs.
16. Develop a solid Business Agreement. This document is essential for all new businesses and will help prevent tremendous financial and emotional problems.
Although this list is not exhaustive, it is a great place to begin. It is also always advisable to work with an accountant or other small business specialist to ensure you get off to a great start! If you have questions, we are here to answer them! Call us at 806-676-2849 or come by the office today!