So you prepare to start your own business. You have come up with all plans plans; So, what’s next? Plan, prepare and promote! Most people have great business ideas but let’s face it – everyone is not intended to be a successful business owner. Some people are meant to become employees. Now don’t misunderstand; There is nothing wrong with being an employee. You just need to know where you fit in 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 the front office correctly. So many people started a business to fail from the start. Here are the five things you need to start your business successfully if not, it is destined for failure.
1. Run your business like a business. Really don’t talk much to this. If you want to be a successful business owner, you must act like a successful business owner; dress like a successful business owner; and talk like a successful business owner.
2. Know what type of business you want to run. Before you do anything else, you need to know what kind of business you will run. And with that I don’t mean the products and services that your business will offer. I mean how you will operate – as a limited liability company (LLC) or as a corporation. Will you be a single owner or will you have a partner? These questions are important in helping to determine the necessary forms you need to submit your company as a business.
3. Register with IRS. After you determine the type of business you want to operate, you need to get a federal identification number with the IRS. If you have done step # 2, you can answer questions correctly on the federal identification application. These questions help set the end of your year and type of tax form that needs to be submitted every year.
4. Register with your country. The next step is to register your business with the local State office. Just like making your business with IRS, this will also help you understand the submission of the state you need to maintain. In addition, in most if not all countries, registering with the state allow you to ensure that you are the only business in a state that operates based on your name. You don’t want to use a company name that already has a reputation, especially if it’s not a good reputation.
5. Open a separate business bank account. One of the biggest mistakes made by new business owners is to not prepare separate business bank accounts. Co-mingling company funds with your personal funds is great no no! Yes it’s all your money, but you will not only put your personal assets with risk but you also won’t be able to ascertain how much cash your business really earns and spend. This is because in most cases, if business owners relate to their funds, they also do not maintain good accounting records.