With anything that you do, you must first have a plan. That plan has to come out of a vision. If you are reading this article, I’m assuming that your vision is to one day quit your regular day job & tread on the journey of entrepreneurship.
After being employed at a certain pay wage for an extended period of time, our “standard of living” tends to match up with our income. If you do not see a promising future for your business, that can be hard to give up. If you are someone who would like to one day start a business or more & work for yourself, or someone who is at the beginning stages of owning a business, working too many hours a week on someone else’s clock can kill the rate at which you have time to make sure that your business continues to grow. This is even more hindering, if you also do not have any assistance with administrating & branding your business.
The first step towards minimizing how much you rely on your regular day job for income is to minimize your spending habits. No entrepreneur can survive the world of business, if they are unwilling to make sacrifices. You must find the will to cut back on your spending, in order to increase your savings. This means shorter drives & less driving, to save gas…eating less expensive meals…doing less shopping…even using less water & electricity at home. It may also be smart to request less hours at work or take more time off, to focus on what your business needs to remain prosperous.
The second step is to maximize your resources. You could try buying your food in bulk for cheaper prices…or running errands in the same drive, in order to “Kill two birds with one stone.” You could even consider selling valuable things you have lying around the house, if you aren’t using them anymore. If you can afford it, a certificate of deposit or money market account might be a good idea.
The third step is to separate your business capital away from your personal funds. This way you have a clear look at where your business stands. If you wish to open a business bank account, likely, that bank will require you to have a FEIN (Federal Employer Identification Number) & a certificate of registration number. You can obtain both of these from the IRS and/or your state’s Dept. of Revenue.
A certificate of registration is proof that you are registered to collect & remit taxes to the state. Though there are risk for not collecting & remitting correctly & having to pay taxes may deter some customers from patronizing your business, but there are benefits to this as well. You have the option to register as a sole-proprietorship, a limited liability company, a corporation, or a non-profit organization. In order to register as a LLC, corporation, or non-profit, it will likely require a business license and/or external documentation. If you register as a sole-proprietorship, you will be required to file a “Schedule C” along with a 1040 tax Form. In essence, you would also be eligible for certain tax deductions. This means on top of your W-2 tax return, you will also receive a return for your business. As you may already know, there are many benefits of establishing your business as a non-profit organization as well.
Lastly, if you decide to separate your business funds from your personal funds, consider making deposits to your business account out of your personal account. Never be afraid to invest in yourself & your business. Another important thing to remember is that success does not always come overnight. This means the time that you have to tend to your business should be very valuable to you. It means that you will have to put forth a great deal of time, effort, & money to see any substantial growth. The rate, at which you tend to your business, will be the rate at which it grows. It may even be wise to set short & long term goals for yourself. Always be very aware of where your time & money is going.
This article was derived from an original post on my website. All rights reserved.
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