Starting your own business is not as difficult as you might believe. In fact, if you examine the principles upon which this country was founded, you will discover that America was designed to accommodate the self-governing business person. Our tax laws as well as many other government regulations are set up to support small business.
Starting your own business begins with an idea and desire. Possibly one of the first questions you should ask yourself is, "Why do I want to start my own business?" If your desire is based upon delusions of grandeur, that is, simply wanting to make a lot of money with little work on your part, then you may be on the wrong track.
Starting a business is a lot of work. Yes, it will pay off with perseverance in the long run. However, you should be prepared to work hard with little return for a period of time. Many new businesses fail in their first year because the businessperson thought that everything would be easy because they were now the boss and made the rules. Most successful business ventures started out slowly and grew over time. Therefore, your desire to start a business needs to be grounded in reality. Those who really prosper in business are those who love to work.
Now, as for your idea ... Before beginning a business, you need an idea. You need to examine that idea inside and out to see if it is sound. An idea that taps into the skills of people to create jobs and also fulfills a need in the community is an idea worth pursuing. Selling a product can also be a good idea. The main questions to look at here are, "What are my skills, what am I good at and what do I love to do?"
When you start a business, you are selling yourself, your potential. This is an extremely important point. If you are good at talking to people, selling ideas, services or products to people, then there is potential. Personal relationships and communication skills are a real asset. Many people are insecure when it comes to selling their skills; therefore, being in a position to sell someone else's skills for them can also be a great idea for a business.
Capital is important for beginning a business. The amount needed varies depending upon the business. However, you can usually begin a business with a very small amount of capital. You may only need a telephone. If you need to advertise, you can begin with flyers (which are very inexpensive), talking on the phone, canvassing the area, etc. In these cases money is not the capital that is required; creative energy is. Most people equate capital with money. This is not always the case. Again, it depends upon the business, but there is a lot you can do with human resources.
Once you have the idea for a business, the desire to make it work, and whatever initial capital you need, the first legal step to take is to file your business with the appropriate authorities. In some cases, a business license may be necessary; however, in many cases, if your business is a proprietorship or partnership, you need to simply file a Fictitious Business Name Statement with the office of the County Clerk. A visit to the County Clerk will give you access to all of the business names already in use. You can't use one that is already taken. Once you have a business name that is not in use, you file a statement with the clerk and then within 30 days give notice in a newspaper (total cost in Alameda County &emdash; $44.00). There are certain name restrictions on filing a FBNS. This statement protects your business name from being used by others. (See form obtained at the office of the County Clerk.)
(NOTE: A Fictitious Business Name Statement is not applicable to nonprofit corporations or associations or to certain real estate investment trusts.)
Once you have filed a DBA, your business is placed on mailing lists and you will begin to receive information from those who are in the business of helping businesses get started. This includes advertisers and marketing firms as well as credit agencies who may be able to get your business the capital it needs to get off the ground. As a business, rather than as an individual, doors will open up for you that were not available when you were just viewed as another working person.
Finally, it is important to open a checking account for your business. Again, the cost of this is minimal (usually there is a $100.00 deposit requirement and a $35.00 check printing fee). Every transaction you make as a business should be performed with a check. This allows you to claim tax deductions. Expenses which in the past were "personal" now become "business expenses". For example, business lunches, office supplies, phone bills, computer or other equipment purchased may now be written off in taxes.
Copyright © 1997 Sterling Rose Press, Inc.
Our postal mail address is:
Sterling Rose Press, Inc., P. O. Box 14341, Berkeley, CA 94712. USA.You can e-mail us at: arcana@celestia.com or fill out the Feedback Form
This Server