Anyone own a small business???

Agentmysterycat@hotmail.com · March 2009

I am thinking of starting up my own little home based (for now) business.

Has anyone done this? What steps should I be taking? I have a name and somewhat of a plan....

TIA

Mystery2B · March 2009

Do you want to write a business plan? I would - it helps you set out your goals/strategies/and financial plan. There are books at the library that can help you. Plus it helps you think through what all is really involved.

Then get a business license from the city.

Good luck!

Maisey7707 · March 2009

I can't help on on this. I just wanted to say that I love your siggy.

Agentmysterycat@hotmail.com · March 2009

Thanks, I plan on picking up some books...just wondering if anyone else has gone through the process and any tips

Thanks for the compliment on my siggy pic!

Wan-naBe · March 2009

i would imagine that the process is different from one state to another.

i had to file a fictitious business name in addition to obtaining the business license. ?my bank required both to open a business account.?

april25 · March 2009

Go to SBA.gov There is a detailed plan of what you need to do to start any business.

In short, if you are not planning to get a loan there is no need for an intensive business plan.

You should register your biz as a DBA if it is not just your first and last name.

You'll need to decide your structure of biz.

You'll need to get a tax ID for sales tax.

You need to check zoning in your area to make sure it is legal to run your biz.

You should prepare to give the government your first born.

You should not expect an income/ profit for at least 5 years.

You can get a biz counselor from SBA (free).

You need to get really good at bookkeeping (if you aren't already).

Good luck! I love owning my biz, but the bigger it becomes, the more complicated it gets and the more it rules my life.

erin_nj83 · March 2009

Ditto April. I own a business (biotech so a lot more complicated than a home business). I would be realistic on what you plan to make with this business especially in this economy. I would make sure you have a healthy savings account because little expenses like business cards and bad months can really add up fast. Look to see if your field has marketing reports. These reports will help you figure out the market size. Also, study your competitors. What are their stengths and weaknesses? Do you see a niche that you can carve out for yourself? Is there a market that is being under served? Is there a market that is flooded? Also, pricing is very important. Your price must include all your supplies and time. Don't forget time you spend just pressing the flesh trying to make sales. I would consider taking a book keeping class. A lot of accounting firms reccomend using Quick Books Small Business. Some firms even offer a class on how to use the program to cut back on accounting costs. I would definetely take one of those courses if you can. Also, look for networking events. There are tons of small business events on how to do marketing or just meet and greets with other business owners. Getting your name out there is key.

Agentmysterycat@hotmail.com · April 2009

Thanks April and Erin! Its all just an idea right now...Everyone I know tells me I should be doing this for a living...and why work for someone else?

iamerikandersson · March 2015

Simple to start a business, but difficult to make it a success. To do that must consult some professional business insurance advisors.

dragonstarjk · March 2015

This could vary GREATLY depending on which state you live in and what line of business you are talking about.

I own a cake decorating business that I operate out of my home. It's only occasional as I have what I consider my 'real' full-time job. In order to start operations, I researched IRS requirements for tax purposes, and then I met with a local state agent to find out the tax reporting requirements for my state (Wyoming). In WY, there is no sales tax on grocery items. Therefore, I do not have to charge sales tax on my sales unless I am actually serving the item. Then it's taxable. I keep records of my sales, expenses, mileage, etc. and then those are part of my tax return. Because it's a sole proprietorship, it just goes on my individual return. I have to report sales to the state quarterly even though I don't collect sales tax.

In this state, you are not required to register your trade name but I did, so that nobody else can use it. Then, if I ever decide to turn it into an LLC (which I would definitely do if I was doing business regularly) I already have that name registered with the state.

As far as business licenses, for my type of business I am not required to have any licenses. Wyoming has a cottage food law which allows for the sale of certain baked goods and homemade items as long as they are not perishable and don't contain 'hazardous' ingredients. For example, I am not allowed to sell cheesecakes, cream pies, or really anything that requires refrigeration. I was able to find all of this out by having a quick meeting with the local representative from the state Dept. of Agriculture.

So, my recommendations are: 1) Meet with a state tax rep to determine the requirements for tax reporting; 2) if it involves anything edible, meet with a state rep to determine what guidelines you have to follow; 3) look to see if there is a small business office where you could meet with somebody to outline whether you are required to have any licenses, insurance, etc. 4) Meet with a legal advisor to help determine the best structure for your business (sole prop, LLC, corporation, etc.) 5) Meet with a tax advisor to determine the best option for tax filing. As a sole prop, I can either file separately with my business by getting an EIN, or I can file with my individual return using my social. I go with option B just because my sales are very, very small ($1,000/year).