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Starting a Business
Whether you are starting a service business, retail business, Internet business, small or big business, starting any business is not something to be taken lightly. Should you buy an existing business, become a franchisee or start your own business? Should you buy or lease property to use in your business?
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What about employees, worker's compensation insurance and payroll taxes? What about taking on a partner or investors? Are you willing to sacrifice your current paycheck and benefits? Starting a business is not as simple as opening a door. Over the years, it has been my privilege to help many small business owners start their Atlanta businesses by preparing income projections to satisfy the requirements of the Small Business Administration lending requirements, and by discussing strategies for maximizing the tax advantages of starting a business.
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Although there isn't any way you can guarantee that you'll become successful after starting a business, you can greatly improve your odds by becoming well-prepared for the task of starting a business. Here are some major points to consider before starting a business:
Do you have some knowledge and/or experience for the particular business you want to start? Honestly evaluate your experience and skills for the type of business you want to start. Most small businesses do not open their doors and start making money. I always advocate starting a business that builds and takes advantage of the considerable experience and expertise you have acquired in your current line of work. Consider tapping into your readily available knowledge and experience to shorten the learning curve of your new business.
Starting a business
without the financial reserves to meet your personal expenses and the start-up expenses of the new business is usually the reason most people who start their own small business fail. Because most small businesses don't begin making money for the first several months and often years, you should have financial reserves lined up to carry the business and your personal bills for at least six months. Small business loans aren't
easy to get for people starting a new career and oftentimes the bank will ask you
to pledge personal assets to secure the loan.
Your first decision in starting a business should be to choose a small business structure, such as Partnership, Corporation, Sole Proprietorship or LLC (Limited Liability Company). Here's where a CPA can help individuals who decide to start their own business. Because CPA's work with many businesses they can help you decide which structure works best for you. Then write a business plan which will help you think through some important issues that you might not have considered yet. Small Business plan software is sold in office supply stores and over the Internet.
Michael Johnston, CPA can help you when starting a business in Atlanta by offering the knowledge and expertise that only thirty-one years of experience brings you.
A business plan is most often used when you need
to borrow money to start your business. It precisely defines the business you are starting, identifies your goals and serves as your firm's resume. It includes a brief description of your new business, yours, your business partners' and employees' experience. It also includes a description of your competition, marketing plan, break even analysis, personal financial statement, tax returns, start-up and operational budgets and detailed profit and cash flow projections.
When you're starting a business it is absolutely critical that you have the support of your Atlanta friends and family. Remember, most businesses don't start making money right away. This could put pressure on your family life. Also, you can count on spending long hours and days when you start your new business. Be prepared to work harder than you have ever worked before when you start your own business. Genuinely, ask yourself if this business is right for you and whether you will like doing the work. You won't mind the long hours if you enjoy what you're doing. Finally, before you go to a bank, it's a good idea to have someone look over your written business plan.
There is no lack of free information on the Internet for those who are considering starting a business. In addition to the links on this page, please visit my Links page and click on Starting a Business for links to Internet websites with helpful information.If you need help starting a business, please call me at: 770-969-9850 and good luck!
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| Helpful Internet links for Starting a Business: | |
| Call for immediate help: 770-969-9850 |
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Starting a Business
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| ©2007 Michael Johnston, CPA. All Rights Reserved. |
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