When you're self-employed, you're the boss. You get to call all the shots and make all the decisions. Sounds great, right? Well, it can be, but it also comes with a lot of responsibility.
Starting your own business can be a daunting task, but it's also an incredibly rewarding experience. To help you get started, here are but a few of the many things to think about:
Choosing a Company Name
One of the first things you'll need to do when starting your own business is to choose a name. This may seem like a small task, but it's quite important.
Your company name is one of the first things potential customers will see, so you want to make sure it's something that will grab their attention. But you also want to make sure it's something you're comfortable with. After all, this is the name you'll be using to represent your business.
Here are a few things to keep in mind when choosing a name for your business:
- Keep it simple. A complex or difficult-to-pronounce name can be a turnoff for potential customers.
- Make it memorable. A name that's easy to remember is more likely to stick in someone's mind.
- Avoid using initials. While they may be easier to remember, initials can make your business seem cold and impersonal.
- Check for trademark issues. You don't want to choose a name that's already trademarked by another company.
- Do a Google search. See what comes up when you type in your potential company name. If there are already a lot of results, it may be difficult to make your business stand out.
Deciding on a Company Structure
Once you've chosen a name for your business, you'll need to decide on a company structure. There are several different options, and the one you choose will depend on a number of factors, including the size and scope of your business and your personal preferences.
The most common company structures are sole proprietorships, partnerships, limited liability companies (LLCs), and corporations.
Sole Proprietorship
A sole proprietorship is the simplest and most common type of company structure. If you're the only owner, then you're automatically a sole proprietor.
Here are a couple of things to keep in mind with this type of structure:
- You're personally responsible for all debts and liabilities. This means that if your business can't pay its bills, creditors can come after your personal assets, such as your home or savings account.
- You have complete control over the business. This can be both good and bad. On the one hand, you don't have to answer to anyone else when it comes to making decisions. But on the other hand, you're also entirely responsible for the business's success or failure.
Partnership
A partnership is similar to a sole proprietorship, but there are two or more owners involved. Partnerships can be either general partnerships or limited partnerships.
General partnerships are fairly simple: all partners are equally responsible for the business and its debts. Limited partnerships are a bit more complex, with some partners having limited liability and others having full liability.
Like sole proprietorships, there are a few things to keep in mind with partnerships:
- All partners are personally responsible for the business's debts. This means that if the business can't pay its bills, creditors can come after the personal assets of all the partners.
- All partners have an equal say in decision-making. This can be both good and bad. On the one hand, it means that all partners have a say in how the business is run. But on the other hand, it can also lead to disagreements and gridlock.
Limited Liability Company (LLC)
An LLC is a type of company that offers its owners limited liability. This means that they're not personally responsible for the debts and liabilities of the business.
LLCs are becoming increasingly popular, especially among small businesses. They offer the personal asset protection of a corporation, but they're simpler and less expensive to set up.
There are a couple of things to keep in mind with LLCs as well:
- Owners can choose to be taxed as either individuals or corporations. This flexibility can be helpful if you're not sure which tax structure will be best for your business.
- LLCs can have multiple owners. This makes them a good option for businesses with more than one owner.
Corporation
A corporation is a type of company that's legally separate from its owners. This means that the owners are not personally responsible for the debts and liabilities of the business.
Corporations are the most complex type of company structure, and they're usually only used by larger businesses. They're also more expensive and time-consuming to set up.
There are a couple of things to keep in mind with corporations as well:
- Owners can choose to be taxed as either individuals or corporations. This flexibility can be helpful if you're not sure which tax structure will be best for your business.
- Corporations can have multiple owners. This makes them a good option for businesses with more than one owner.
So, which company structure is right for you? It depends on a number of factors, including the size and scope of your business and your personal preferences. The most important thing is to choose a structure that will protect your personal assets and give you the flexibility you need to run your business successfully.
Have a Solid Business Plan
No matter what type of business you want to start, you need to have a solid business plan in place. A business plan is a roadmap for your business, and it can help you navigate the early stages of setting up your company.
A typical business plan will include the following:
- Your business goals and objectives
- A market analysis
- A description of your products or services
- Your marketing strategy
- Your financial projections
- A management plan
- An exit strategy
Writing a business plan can seem daunting, but there are a number of resources available to help you get started. Once you have a draft of your business plan, you can meet with a small business advisor to get feedback and guidance.
Financing and Accounting
As a self-employed individual, you're responsible for financing and accounting for your business. This means that you'll need to keep track of your income and expenses, and you'll need to file your taxes as a self-employed individual.
There are a number of resources available to help you with financing and accounting for your business. The Small Business Administration (SBA) offers a number of helpful resources, including guides on how to file your taxes as a self-employed individual. You can also find plenty of information on NASE.org, or you can hire an accountant to help you with the financial side of your business.
When it comes to financing your business, there are a number of options available. You can use your personal savings, you can get a loan from a bank or credit union, apply for a grant, or you can look into government funding programs.
The most important thing is to make sure that you have a solid plan in place for how you're going to finance your business. Once you have a plan, you can start to look into the different financing options available to you.
Marketing
Once you have your business up and running, you'll need to start marketing your products or services. Marketing is the process of creating awareness and interest in your business, and it can be done through a variety of channels, including online, offline, and word-of-mouth.
There are a number of different marketing strategies you can use, and the best way to find out which ones work best for your business is to experiment. Some common marketing strategies include content marketing, social media marketing, and search engine optimization (SEO).
Content marketing is all about creating helpful, informative, and engaging content that will attract and retain customers. This can be done through blog posts, e-books, infographics, and more.
Social media marketing is a great way to reach out to potential and existing customers through social media platforms like Facebook, Twitter, and LinkedIn.
Search engine optimization (SEO) is the process of optimizing your website and content to rank higher on search engine results pages (SERPs). This can be done through keywords, backlinks, and other on-page and off-page SEO techniques.
The best way to find out which marketing strategies work best for your business is to experiment and track your results. This will help you determine which strategies are most effective at driving traffic and conversions.
Conclusion
Starting your own business can be a daunting task, but it's definitely doable with the right planning and preparation. Be sure to have a solid business plan in place, and make sure you understand the financial and accounting side of things. Don't forget... you'll also need to market your business effectively if you want to attract and retain customers.
If you need help getting started, there are plenty of resources available. The NASE and The Small Business Administration (SBA) are great places to start. You can also find plenty of information online, or you can hire an accountant or marketing consultant to help you out.
The most important thing is to just get started and keep moving forward. The more you work on your business, the more successful it will become. So what are you waiting for? Get out there and start building your dream business today!
And finally... Don't forget that as a NASE member, in addition to the many benefits that you can take advantage of along your journey you can ask our team of experts about anything that comes up along the way.