Is Starting a Business For Me

Entrepreneurs start businesses at any time, regardless of the state of the economy or opinions of others. They are driven by a dream and desire to bring something of value to the market and society. And, are not afraid to experiment and fail along the way.

We are fascinated with people who make something out of nothing, invent products and show us new ways to use well-known stuff. There are individuals who are driven by grand ideas and have vision to do great things. Others are modest in their undertakings and have a simple desire to provide for their families.

Most of us have entrepreneurial qualities but for different reasons do not find ways to utilize them. The first question that comes to mind of any aspiring entrepreneur is "Is starting a business for me?"

This is a great question and deserves an honest answer. Most individuals can own and successfully operate a full-time or part-time business. Being a business owner is rewarding but a challenging endeavor.

The aspiring entrepreneur would like to know what it takes to start a business from the ground up and be a business owner. Business ownership offers many benefits such as being able to full fill a dream, seeing the fruits of your labor and directly benefiting from it, not being dependent on capricious bosses and the latest corporate restructuring. You have more control of you destiny by owning a business than working for someone else.

However, business is like a living thing and needs constant attention. In a start up stage it requires a lot of creativity, dedication and total commitment. It requires significant amount of energy to take off the ground and face the challenge and ambiguity. Even though people often are aware about the difficulties they may encounter still, tens of thousands of business are started every year in the US alone.

It is helpful to introduce some streetwise wisdom: It takes three to six months to test a business idea to find out if it is worth pursuing it and make it a business. After you successfully test your idea, it takes about three years to find out if you have a truly good business concept. And takes over ten years to become truly profitable.

Most start ups require full-time commitment. However, in many occasions a part-time business may be a better route to follow. Often family, career or civic commitments limit the time available for entrepreneurial ventures. In this situation individuals can embark in a start up as time permits. Part-time businesses it still require regular effort. For example, a hobby is suited become a part-time businesses. It requires minimum learning and can quickly produce results. However, usually would have limited market and is difficult to grow.

Another way to enter business ownership is to buy an existing business. It allows instant access to established operation, owner expertise, customers and income. However, you are buying someone's dream. Each business reflects owner personality, desires and values. Buying an established business is less risky but, does not diminish the need for commitment, effort and dedication. There is no guarantee that you will enjoy higher rate return on investment than staring your own.

Only, one that absolutely loves to work for large organizations or for others and always avoids any form of risk should not try to start or own a business. Such individual may not be able to condition his mind to small business dynamics. It is better to look for a new job, not wasting time and resources starting or buying a business.

Starting a business from the ground up needs considerable effort and resources but, is exciting and potentially very rewarding endeavor. It attracts young and old, people who want to fulfill life long dreams and ones that are looking for income to support their families. Most start ups and small businesses fail but they always allow us to gain valuable experience and help us learn a great deal about ourselves. It is worth starting a business before you are restructures out of a job or being old and never tried to fulfill a dream.

Record Keeping For a Home Based Business

To introduce this topic "Record Keeping for A Home Business", I must repeat a statement you have seen many times before in this series - "a home businesses is just that, a Business." New statement - YOU CAN'T RUN A BUSINESS WITHOUT KEEPING RECORDS! Many people planning to start a small business from their home are surprised to find that keeping records of the business is one of the requirements. It is. I can't help you there, but I can give you a few tips to make it easier.

Why do you have to keep records?:

Taxes - the most obvious reason is to prepare your tax returns. For more information about taxes I would go to the Internal Revenue Service website (irs.gov) and check three items under "Business" - "Starting a Business" - "A-Z Index For Businesses" - and, "Small Business Forms and Publications."

To monitor progress and prepare financial statements - good records help you monitor the progress of your business. What products or services are selling and returning the most profit? Did you realize positive results from your last marketing campaign? Which sales letters or landing pages are making the best conversions? Are you really making any money? We could go on and fill this page with questions, but the bottom line is that without accurate and adequate records you don't have a clue.

Customer service - there will be numerous times you will have to go back to your records to resolve a customer inquiry or provide information.

Managing cash flow - even a small home business can benefit from managing cash flow. Cash coming into the business never equals outflow. Good records let you anticipate these differences and prepare for them by making wise purchases to minimize outflow, or offering sales or new promotions to increase inflow when it is needed most.

Marketing - anyone who has been in business (any kind of business) for any length of time has heard "the money is in the list (of customers, prospects, leads)" and "test everything to see what works and what doesn't." That is excellent advice, but can't be done without keeping records.

What Records do you have to keep?

The very simple answer is all records having to do with money flow into and out of your business. A far more precise answer (having to do with tax records) will be found in the Internal Revenue Service website (irs.gov) under "Small Business" - "Starting A Business" - Record Keeping." There are, as we've seen, reasons other than taxes to keep records, so let's get back to the statement "all records having to do with money flow into and out of your business.

Money flowing into your business might be:

Money from selling your own goods or services
Commissions from selling goods or services for others
Bonuses for recruiting or special sales (Network / Internet Marketing)
Money you (or a partner) contribute into the business
Money from other sources such as borrowed from a lender or investor
Money you make from sale of all, or part of, your business

Money flowing out of your business might be:

Home expenses for that portion of your home used as an office
Payments for product to be re-sold
Payments for all services and expenses, such as marketing, advertising, supplies, accounting, education, etc. required to run your business
Payments to buy or replace business assets, such as computers etc.
Payments to yourself (or partners) in the form of a draw against equity

What is the best way to keep these records?

My experience in small business leads me to say - without hesitation - QuickBooks. I don't have space in this Article to tell you all the reasons why, but QuickBooks is a good system that eliminates repetitive record entry, is accepted by all Accountants, and is quick and so easy that even I can do the books.

One thing I can tell you about small business record keeping is this - if you don't organize your records from the start, and stay on top of your record keeping chores daily, I can almost guarantee that you will come to grief - probably sooner than later.

I'd like to leave you with eight tips CRITICAL to business record keeping success and sanity:

Never mix business and personal paperwork. For instance, by using one checkbook or credit card for business and personal use.
Make sure your records can be understood by anyone, not just yourself. I strongly suggest you use one of the widely accepted automated software record keeping systems. My personal recommendation is QuickBooks Pro.
Always use the memo section of your checks to record the specifics of the expense.
Record transactions as they occur, or at least on a daily basis. Reconcile bank statements the day you receive them. Retain all bank statements.
Get help before things get out of control. Your Accountant, or Business Counselor should be able to help, or at least point you in the right direction when help is needed.
Develop and maintain a good back up system. If you are using computer software back up daily onto disk or jump drive (my preference) and store the disk or drive in a fire resistant cabinet or other safe place. All permanent records of the business like licenses, contracts, organization filing papers, etc. which are paper documents, should be copied or scanned electronically, and stored the same way.
Unless you have a tax accounting background, plan to have your taxes prepared by an Accountant (at least the first year). Check with the Accountant to make sure you understand what records will be required, and that you will be able to supply them.
Prepare and carefully review a Profit and Loss Statement and a Balance Sheet monthly. Flaws in your record keeping system (or mistakes) will show up there, and can be corrected in a timely manner before they get overwhelming.

10 Tips For Choosing a Home Based Business

Work from home

Choosing the right type of business is a difficult process for your new start to become entrepreneurs. A lot of dreams when to start a business, but still frozen, especially because you do not know what is the appropriate business when those ideas come to mind.

Here are ten tips on choosing a home business that may be suitable for you.

1. Instead of choosing the first business that comes to your mind, try to take some time to explore various options. Select another business idea! Read books that might provide ideas home business or small business, and magazine articles or more entrepreneurial and marketing of existing trends and market demand. With the phenomenal growth of the Internet, the information you need now easy for your search.

2. Find out what kind of business that interests you. Define your goals, interests, desires and abilities. What is important is that you should enjoy your business is. Entrepreneurs who succeed are those who feel most passionate about what they are doing. You can not feel excited if you do not like!

3. Choose a business that is personally satisfying and profitable. Although you may have a passion in a hobby or craft, try to consider the potential business. Do you think there is a demand for it? Was going to take you on recurring income? How is the market potential, whether already saturated? Are there barriers to entry? Do you have economies of scale?

Start a business that you think has the potential benefit. You will need to do a lot of calculation to determine the financial viability of your business. Obviously this will require market analysis and an analysis of BEP, the initial financial projections show that the amount of income you should be able to cover your expenses. All this requires extra energy, especially if you are not a financial expert, but this is one important step in assessing whether the business you choose can make money.

4. Think about whether you can and want to manage every aspect of business. When you start a new small business, you may not have the luxury of staff to help complete in some aspect of your business is. Instead of just focusing on the strategic direction of your business, you may be asked to collect the receivables, track expenses, receive customer calls, and do thousands of other tasks. Snap will be other tasks that you must do in your business.

5. Area. Draw a layout of your workplace. Remember, you start business at home to save on overhead costs, so take advantage of every nook and cranny possible that you can use in your home. If you want to start a cake decorating business, you must have a large kitchen. Forget about starting a dance instruction class if you live in a studio apartment!

6. Make sure your business meets the high safety standards, especially if you have children at home. This is important if your business is associated or using chemicals and other hazardous substances. For example, store all chemicals used for cleaning carpets or upholstery. Move these materials in a safe place for example in the garage out of reach of children.

7. Check with your insurance agent to determine the types of business insurance coverage you need. This is good planning to determine what insurance is needed to minimize risk and protect your business. General categories of insurance including property, licensing, liability, health, disability, workers' compensation, and life insurance.

8. Ensure compliance with laws and regulations in your area. Visit your local government office to view the regulations or other business licenses will be able to prevent you from selecting a particular location. Be careful, pay attention to the rules that regulate business signs and business types that are allowed at different locations. You do not want the government to come knocking at your door asking you to stop the surgery after you spent thousands of decorating and equipping your business!

9. Family. Choose a business that has the organizational characteristics that are compatible with yourself or choose a business that fits with your family schedule. If you have a newborn at home and your husband work full time, you should look for a business that will allow you to take care of your baby. Business that will force you to actively seek out clients such as real estate may not be suitable for you at this time.

10. Create your family members involved in business and work together for success! Every dream of combining home and office, career and family became a symbiotic blend of harmonious bliss. Not easy, but it is one way to involve your family in your home business. For example ask your teenager to help design your web site. Your partner can help in negotiating with your clients. The most important is that each person in your family to enjoy the job and help the success of your business.

Accounting Consequences of Legal Business Organization

If you are starting a business, one of the first decisions to make is the legal structure of the business. This decision will impact your taxes, liability, and control over the business over its life. Considerations to take into consideration are:

How large do you expect the business be?
What level of personal liability are you comfortable with?
Do you anticipate much liability in the daily operations of the business?
How much revenue do you

project?
How comfortable are you with strict organizational structures?
How do the owner(s) plan to take profits out of the business?

But this decision should not be made in a vacuum. Consult your accountant and attorney for advice before making a final decision. They can help guide you through the implications of how you organize your business. They are also the experts in any relevant state and federal laws.

There are three major categories of legal business structures with variations on each. Here are some of the most common legal structures with the pluses and minuses of each.

Sole Proprietorships

Most small businesses start out as a sole proprietorship. This is when there is only one owner who is also responsible for the day-to-day operation of the business. The owner controls all the assets of the business and takes on all the liability of the business operations. Profits and losses are reported directly on the owner's personal income taxes. In effect, the business and the owner are the same entity legally.

Pluses of Sole Proprietorships

Easiest form of business to set up and dissolve.
Single owner has complete control over the business.
All profits and can be re-invested in the business or it can be used by the owner.

Minuses of Sole Proprietorships

Owner has full liability for business operations. This includes all debts or lawsuits against the business. The owner's entire personal assets are at risk.
It is harder to raise capital from commercial sources with a management team of one.
Employee benefits can not be deducted from the business' income. This includes the owners health insurance.

Variation of Sole Proprietorships

There is only one type of sole proprietorship.

Partnerships

Similar to a sole proprietorship except that this entity includes two or more people who share ownership of the business. The day-to-day management of the business may or may not be divided among the partners. Once again the law looks on the owners and the business as a single entity. An operating agreement should be drawn up by a lawyer and signed by all partners governing how the ownership is divided, profits will be distributed, new partners added, and the business dissolved. The cost for a lawyer to write up a good operating agreement is far less than the litigation that invariable will arise over the life a business. It is the same issues as with a divorce over the property.

Pluses of Partnerships

They are still easy to establish but you should have a professionally done operating agreement.
Liability is spread over several owners.
All profits can be re-invested or flow directly to the owners.
It is easier to get capital from traditional sources including banks.

Minuses of Partnerships

All the partners are liable for the debt and lawsuits of the business. The partners' personal assets are at risk.
Profits and decision making is shared if conflict arises.
Employee benefits can not be deducted from the businesses income. This includes health insurance.

Variations of Partnerships

General Partners -- Members of the ownership team responsible for day-to-day management, associated liability, and share of profits. Sometimes called an active partners.
Limited Partners (LLP) -- Members of the ownership team that only have liability up to their investment and generally have limited input into the day-to-day operations of the business. Sometimes called a silent partner.

Corporations

A corporation is registered with the state where the company resides. Legally it is a unique entity from the owners. The taxes are paid by the corporation and it can be sued or enter into contractual agreements. A corporation is owned by shareholders who elect a board of directors to manage the day-to-day business decisions. A lawyer should draw up the ownership agreements.

Pluses of Corporations

Shareholders have limited liability for the corporation's debts and liabilities.
Shareholders can only be held accountable for their investment in the stock of the business.
Easier to raise capital through the sale of stock or through commercial means.
Employee benefits can be deducted from the corporation's profits for taxes.

Starting Home Business

Notice all the "Starting Home Business" posts you have been receiving? Are you interested in starting a business from home? You should be! Why? Because big business has failed us. Not only have they failed us, they don't seem to "Get" that they failed us. We hear that the worst is over, then a friend calls that they have just been laid-off or we see the sign"Starting Home Business."

Don't get me wrong, I love business. However, I love small home based businesses not BIG bureaucratic businesses. In business school these days they seem to be teaching students more about how to manipulate the system rather than why business exists or what makes a business last. The education system in the United States has produced a whole new breed of Business School trained executives, whose loyalty is to finance and the manipulation of investments; who feel no obligation to be familiar with a company's employees, product, manufacturing process or customers. There are exceptions, however, normally BIG equals bureaucracy and bureaucracy equals mediocrity.

Why do I bring all this negative "stuff" up? Because I want you to understand that you can put up your sign "Starting Home Business" and succeed when you care about your customers, community, family and friends. Caring is one of the building blocks to your success.

So how do you start your home business?

Go get a hand held mirror.

Bring it back with you to this computer screen, look into and say:

"As of this moment forward I am an independent home business owner.

My business is helping others find financial security and freedom.

I am starting part-time while I continue with my current position."

Congratulations, you have taken the hardest step in starting a business from home.

You will note that I am suggesting that your business "is helping others find financial security and freedom." I'm not suggesting that you start a business that requires a substantial investment like purchasing a franchise or producing products. In fact, I'm suggesting your home business be a people to people business. I believe that this is the type of business that provides you with the greatest opportunity for success with the least amount of risk.

Today, due to technical advances and the online revolution, doing business person-to-person is not in vogue. You hear about the thousands of dollars to be made by becoming an online affiliate. There are people making a lot of money online, however, affiliate marketing is very difficult for the novice or newbie as you will be called. A great deal of the money being made online is being made by experienced online marketers, sometimes called super-affiliates, selling their secrets to new affiliates and newbies. Much of the advice is good, however, I personally believe that the best home business to start is a person-to-person networking business.

What do you do next? Let everyone know by posting your "Starting Home Business" sign. Be flexible, open to change, aware of the opportunities that the universe presents to you - every day. Its scary! I know most likely you were not taught anything about business in high school or college. What I do know is that once you change, that is change your attitude about your home business, you will never turn back. Decide what type of people to people business you want to become involved with.

Also, it is very important that you understand that business can be fun? That's right, FUN! Ever thought that it would be fun to be in business with your friends and people you enjoyed rather than strangers that you are thrown together with because of a paycheck? When you leverage your income with the income of your friends, family and associates, it's fun. That's what networking home based businesses are all about. And you can start a home based business with very little up front capital. When I say very little, I mean less than $50.

Have you considered starting a networking business? What questions do you feel people would like answered about opening a networking business? Post your questions to me.

Sometimes people take a short term view of their home based business. At times, on the Internet and in network marketing, I see people who view selling as taking advantage of others for a short term gain. Don't do that! Don't prey on each other, help each other. Find yourself a good company and build your business with it. Help others while you help yourself.

Tips For Starting a Home Business in Today's Economy

We all agree that it is not easy to start a new business. Instead of directly doing business activities, beginners are usually stuck with their bustle which distanced themselves to start the actual business activities. They are busy making business cards, choosing fonts or company logo, or thinking about the valuable business concept. This condition sometimes happens until weeks or months without doing the real business.

It is true that to start a business need good preparations. According to Robert Spiegel, author of The Shoestring Entrepreneur's Guide to the Best Home-Based Businesses, prepare a business is like sharpen a pencil. Your business activities are not only about how sharp your pencil, but how you use the sharp pencil for your business success.

If you are experiencing such conditions, there are 10 tips from Robert Spiegel that you need to remember and do:

Make Working List - Put it in a place where you can always see it at anytime. Give it signs and colors that attract attention. The list is a compass that guides you to start your business and run it successfully.

Take Action Quickly - You must imitate how an infant is learning to walk. When he falls, he will always wake-up to try walking again; he is never surrender; he learns to walk with his small steps. You must have those attitudes when you are starting a business. You must immediately take action, although you just do a little, short, and small step. You have to realize your working list. You must be focus, because it will reduce the fear and strangeness that you are facing. The doubt can only be lost by the action.

Get Customers or Clients - If you do not have customers or clients, it means you do not have a business. So, get your first customer or client to start your new business. Serve, care, and satisfy your first customer.

Forget Perfection - You are impossible expecting everything to be perfect when you are running your new business. There are always some problems and obstacles. You do not to worry, because it is usual and reasonable. In this situation, realistic and patience are needed.

Choose Hard Worker Employee - It is very important, in the beginning running your new business, you are surrounded by hard worker people. It will create a passionate environment, so that it will add your spirit and energy to make your business running well.

Talk about Business - You are a businessman and in the business environment. Change your choice of words and language in your life. Talk your company as a business; do not talk it about a business. You must convince yourself that you are running a business. If you do not believe in your business, how you can expect others to believe it. You do not say the words that show you are not serious in business, for example, "I'm trying to start a business"; you must say "This is my business".

Appreciate Yourself - We all like appreciation. It's time to be honest with yourself, every week ask yourself whether you have done something worthy to be appreciated, which is significant effects on the progress of your business. Feel free to celebrate it.

Make All Accountable - You should find business partners, organizations or other business owners who could supervise your new business, directly or indirectly. This step is important, so that you are always motivated to do serious steps in the right track. This step also keeps you on the path of your business goals.

Up to date - Ensure that your business is not obsolete. This is why you are advised do not spend your much time to sharpen your pencil. The more important thing is to do something for your business. In this step, you must be sensitive to the change.

Remember Your Dreams - When your business has started to run, you do not be afraid to come out from your comfort zone. Tell yourself, "Now, I have got my own business. It is time to make my business getting bigger." You can change the goals and create new dreams to refresh your spirit like in the beginning running a new business.

10 Reasons To Start A Business

People are hesitant when it comes to taking the leap from employee to entrepreneur but to ease that transaction here are 10 reasons to start a business this year. These reasons are in no particular order but they are all valid reasons.

Never again will you have to worry about being laid off, unemployed or fired for the rest of your life. This struck a cord with me because after graduating from a prestigious college, young and ready to prove myself, it all amounted to nothing. If the economy ever takes a turn for the worse (just like it has done these past two years) there is no such thing as job security, unless you are a prison guard.

Never again will you have to ask your boss about a raise. With the cost of living increasing quicker than the rate of pay, people are in need of more money, but they are too afraid to ask their boss for a raise. With your own business you control how much you are paid and when business picks up, your salary increases with it. The only limitations to the income you create is what your business generates.

You can write off a lot of business expenses on your taxes. Discussing tax write offs is not the most interesting subject, but these are ways to save money that can be used towards increasing your business output and therefore, your business revenue. Consult with a business CPA (Certified Public Accountant) before you declare an expense for your business.

You can work from anywhere in the world, especially if you have an online business. I've met successful business people who decided they no longer wanted to live where their business is. With a cell phone, fax machine and laptop, they ran their business in Dayton, Ohio while they beached in Jamaica.

Right now is the cheapest time to start a business. Banks are being more loose and lenient with business loans. You still have to fill out the proper paperwork that you had to before but banks want to finance small businesses. Small businesses employ more than 60 million people in the United States and help keep small communities alive and growing.

There are many business professionals out there without employment due to the recession. These people have extensive experience in the field of their professional and they are willing to accept any kind of employment. If decide to open a store business and you are in need of a personal accountant, skilled technician or personal assistant, these people are available to work for you and prove their worth.

The money is still out there. This was evident during the Christmas season when it was reported 3.5% more money was spent this year than last year. People have returned to their spending habits and if you provide a great product or service of value then people will purchase it.

There are business owners who are willing to work with you and even finance your business. For some business owners, the work has become too much for them to be both management and employee. You can speak with the owner and construct a deal where you take over as management, pay them a low monthly business mortgage or franchise fee and they can continue to work there as a valued employee. That's a win-win-win!

The winter months: December, January, February, are the best months to begin a business because that is when people spend more time indoors than any other time of the year, which includes more time in front of the computer. Whether they are simply looking for ways to make extra income, start their own business or live a different lifestyle than the one they have now. Strike while the weather is cold!

Your imagination, your creativity, is your only limitation. I remember reading a story about a high school student who couldn't afford a college tuition. Instead of getting a job, she decided to make, market and sell beds for hamster. This may sounds like a very unsound business venture but over the course of high school she sold enough hamster beds to pay for all four years of college. That's what I call having a business mindset!

Those are the 10 reasons to start a business and if one or more of these reasons have interested you in starting your own business, allow me to help you achieve your business needs. Simply click my business website link below and I will work with you personally to show you how to achieve the business success you want.