As what most authors are saying, “Starting a business is not an easy job,” but chances are rewarding as you go along with the plans and equipped yourself with the right methods and strategies as new challenges come along the way in your day to day business operation.
Take note, there are countless issues that your small business will encounter as you go along with the road map that you have in hand and this can even make your business fail before realizing possible solutions suited for it.
So it is important for you as small business owner to take all available factors that is relevant to the challenges to what your business is currently facing.
So here you are, you are now on the right spot for you to solve those issues that will help with your business improve and grow, we have here five helpful tips that we believe will give you the right knowledge for you enable unique ideas for the things that you should watch out when you establish your small business.
Before going to the more complex issues, we have here some starting points. But if you want to dig deeper, you can find it on this section.
And if you have the aim to invest but don’t want to spend much money on it, you can always do it the other way around. So as introductory to those plans that we expect you will do in the future, we have here some tips that we believed helpful enough in running your small business.
1. Decide a Concrete Legal Structure
Every business owner whether big or small has its major assessment for them to make in the conduct of its day to day business activities. At first, owners must decide certain things if they go on corporate entity type or business or just sole proprietorship.
So the business starts off after the major decision has been concluded. But business experts strongly recommend a transition type of entity is a good track, since it will protect you on the liabilities and the legal protection it offers.
This means that by becoming a corporate type of small business protects personal credit score, but if you are the one who provides the business capital and putting the hard work, sole proprietorship type of business works best.
2. Determine Your Tax Rules
This part is very crucial in every business, knowing your tax schedules and the amount of taxes that you should be paying based from the type of entity you have should be determined by the business owner. But wait, did you know that there are possible ways for you to skip those other tax items listed on your regular schedule?
If not, you can contact an accountant or tax professional for him or her to assist you with the right payments that your business should be paying the government agencies and the possible amount that you might save.
To give you a hint, any business that is categorized as sole proprietorship don’t have to pay taxes at the start of its operation, while those owners who choose to become corporate type of entities are immediately imposed with the needed taxation of all earnings.
Also don’t forget, any business entity that generates money should or shall we say required to submit a report every quarter. This is one of the reasons why we strongly suggest that “transition type of business entity” is highly recommended.
3. Go for Self Employment Taxes and Save Money
When a certain individual is working with other people at their business or their own company, you the owner of the business establishment is then held accountable for half of their total taxes that are incurred by your employment as employee.
This is a traditional setting of employment in a company wherein your employer or the one you worked with pays half of the total taxes and the remaining amount will be shouldered by the employee [this is the worker or you].
However, if in the case that you are in the self employed category, the entire tax amount is being forced by you and you should pay it or else suffer the consequences of not paying, so therefore setting aside funds for you to cover these tax expenses should be noted regularly and should not be missed to avoid problems like penalty.
4. Consider an Insurance Policy
In most cases, small businesses are wasting their precious funds procuring insurance policy that are useless, only that they find out sooner that they can go along without having it. This is a role for business owners.
Your small business does not have to procure insurance policies, until such time that you have number of employees in your company. Meaning those small businesses operating on their home, with no employees are usually covered with homeowner insurance policy.
So when you are worried about selling your product and the issue on litigation. Well, this is the time that you need to purchase a product liability type of insurance policy.
5. Collecting Fees
The stakeholders, owners and bosses of the small business are accustomed to collect around ten to twenty five percent fees as upfront from them. By using contracts, this is a great way for you to ensure that the money will be received.
As additional bonus, this also shows clients that the company that they are dealing with is not the same with other company that was tagged as “fly-by-night impostor,” and this concludes from them that you are playing a real business and it should be taken seriously by other people or business partners.
With their trust it builds your partners support to whatever good plans the business might have in the long run.