The New Year is a great time to start a new business, but be sure to be aware of what you are getting into. Before you ditch a secure income make sure you have taken these 3 critical steps in starting your new career!
Fox Business explains…
Is your New Year’s resolution to start a business? If so, don’t wave goodbye to the security of a steady paycheck so fast.
In workshops with prospective entrepreneurs, I preach the “slow go” approach to start up a business organization. My preference for first-time entrepreneurs is to wait to quit a salaried job as long as possible to preserve personal savings.
No. 1: Get organized. I wince each time I hear startup entrepreneurs say they can’t call on customers until they get their business and domain names, logos, Websites and marketing materials in place. Most of this work can be completed prior to leaving a day job.
Also, to prevent having to redo all startup business organization and marketing materials, make sure your selected business and brand names are free of trademark conflicts. Start by visiting the U.S. Trademark Electronic Search System (“TESS”), where all searches are free.
No. 2: Get your financial house in order. It is said that the best time to apply for credit is when you don’t need it. Entrepreneurs tend to get a better deal if they tap the equity in their home or apply to increase credit card spending limits before they leave a salaried job. Also, pre-startup is the right time to improve poor personal credit scores that can increase the costs of small business loans, equipment leases, credit card processing services for e-commerce operations, and more.
No. 3: Organize your company structure. Will your startup be set up as a sole proprietorship, a limited liability company, a partnership, an S-corporation or a C-corporation? This is a fundamental question that, among other considerations, determines the taxes entrepreneurs will pay on business profits and personal income.
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