Small Business Organization
What to ConsiderStarting a business is no small feat; there are many things that should be taken into consideration before you decide to go ahead with your plan of starting your own business from scratch. While deciding what product or service your business will offer as well as how to obtain the initial investment capital are of the utmost importance, there are many “smaller” points to consider; points that if addressed beforehand, can help you to run your business more smoothly from the get go.
Business SetupThere are a few choices for a business setup, and what you decide to go with really depends on the needs of your business and how you plan to operate.
Doing Business As (DBA)A DBA is a consideration for some business owners simply because of the easy setup and very low costs. However, a DBA provides zero protection against your personal assets if you were ever to get sued. Basically this means that if you’re going to be doing business with the public in any capacity, a DBA should not be a viable consideration.
Limited Liability Corporation (LLC)A LLC is an affordable way to setup a sole-proprietor business that offers protection of your personal assets in the case of a lawsuit, in most cases anyway. Not only does forming an LLC help you with personal liability issues, it can help to lower your taxes as well.
S-CorpA S-Corp functions much in the same way as an LLC, only this option is more suitable when there will be a clear chain of command; i.e. multiple employees, president, treasurer, etc. Generally this business setup is not needed nor recommended for a sole proprietor.
Finances and AccountingWhen you’re considering starting a business, you need to consider who is going to handle the finances and accounting aspect of things. Unless you have training or the time to learn this required asset to a smooth running business, it might be in your best interest to outsource your accounting needs to a company that specializes in these services for small businesses.
Supplies and ProductsNo matter what type of business you’re running, you’re going to need documents, forms, office supplies and other related items that will help you to run your business efficiently. Finding out which companies offer what you need, shopping around and asking questions will help you to find a suitable supplier for your business. You might even to work out a discount with a particular vendor, which will help save you some money as well.
EmployeesDo you plan on hiring employees? If so, you should decide how you want to hire them; whether they will be 1099 contract workers or W2 employees. Finding out the necessary legal aspects, tax requirements and contracts needed to obtain the types of workers that your business will need before you need them will save you from trying to piece together the required information when the time comes to hire these employees.
AdvertisingHow will you spread the word about your business? There are a plethora of ways that you can advertise your business; newspaper and telephone book ads, online classified ads, purchasing a mailing list, telemarketing, television or radio ads, sponsoring community events, handing out flyers at popular locations; the list is almost endless. Researching the types of advertisements that have proven to be effective in your area for your type of business will help you to gauge where you should focus your advertising efforts while staying within the confines of your established advertising budget.
There are many aspects to consider when you’re thinking of starting up a small business. While having a profitable idea is a good start, if you want things to run as smoothly as possible, you need to take time before you start your business to work out the little details as well.