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Seven Short Steps to a Successful Business Startup
The American Dream is based on the idea that “all men are created equal” and through hard work, exceptional ideals and integrity a man, or woman, is capable of anything. This has created an environment where the human entrepreneurial spirit is able to flourish and allows the citizens ‘dreams’ to come true.
Today, a new economy has opened doors that allow anyone to start their own business. Direct marketing firms have sprung up in almost every area of enterprise; store fronts, travel agencies, juices and wellness companies, energy providers and much more. They allow people to become self employed business persons, inexpensively, and make as much of it as their efforts, energy and expertise allows.
Often times, however, the new business owner has no experience to serve as a guide on what needs to be done to get started on the pathway to success. It is imperative that they approach the business as such, otherwise the governing authorities like the IRS or state comptroller will treat them as a hobbyist, and that has implications that will deleteriously affect them in many ways.
The steps outlined on this page are designed to help you do the basic steps necessary to get you started on the right foot at almost NO COST or TIME. After you have completed the “Seven Simple Steps to Success” the rest will be up to you.
1 Choose a business structure.
You may choose to be a sole proprietor, partnership, LLC or one of a number of other business types. Do a little research online or talk to an accountant, banker or other dependable source to help you make a decision about which best suits your needs and pocket book. There are liabilities associated with each that you should be aware of and an accountant or banker should be able to explain them. A consultation regarding this will probably be free. If they want to charge you, go somewhere else.
If you are just starting out in a direct marketing business you will probably want to start out as a sole proprietor or partnership because the costs associated with forming a LLC or other corporate entity will cost you several hundred dollars or much more.
2 This is a two part task, A and B, because they are similar in function.
2A Acquire a DBA
A DBA (Doing Business As) acquired from your local magistrate; state, county or parish. You will designate the business type (sole prop, partnership, etc.) business name and other business information in this document. Some states may require you to register your DBA through them so be sure to check. In most cases this will not cost you more than $20. You can usually download a pdf file online, fill it out and take it to your bank to be notarized (they should do this for free). Once this is done take it to your local courthouse and file it with them. This should cost you around $20.
2B Acquire a Domain Name.
Find a domain name that matches your business name (or vice-versa) and purchase that domain name. This can be done for less than $8 at GoDaddy (“google” discount code GoDaddy for a code that will give you a discount). You may want to do a domain name search BEFORE you do the DBA (2A) to make certain it is available. If it is available as a URL you will probably not have a problem at the courthouse registering your DBA. This is important because it will provide a professional email address as well as a forwarding address.
THINK BIG, expect to be a great success and prepare for it. Do a “google” search of your chosen business name to see if someone else has already established themselves. If you are successful you do not want to have to ‘re-brand’ yourself because you did not do your due diligence to see if it was already in use.
Another benefit of purchasing a domain name is that it allows you to set up an email with that domain name; admin@yourdomain.com, etc. This is much more professional than a yahoo or gmail address. This may not seem like a big deal, but many of the people you deal with will view you in a more professional manner if your email is associated with your business instead of with a free email service.
If you are part of a direct marketing company that provides a website for your business you can set up a 'forward' with your domain and when people type 'yourdomain.com' in their browser it is then redirected to your business site provided by your parent business. This can be done in a minute or so and does not cost anything.
3 Acquire an EIN
Employer Identification Number are obtained from the IRS and is free if you go to the IRS.Gov website. The entire process can be completed in a matter of minutes. This document is often required to get a business banking account and is important even if you do not have employees. Be careful if you go to a site other than the .gov site, because they are going to charge a fee. Click HERE to get your free EIN.
4. Check to see if a “Sales Tax Permit” is required by your jurisdiction for your business.
States and local taxing authorities will want their “fair share”. Your “State Comptroller” (or its equal) will require you to apply for a sales tax permit and pay them quarterly unless you are an agent and the sales tax is paid for you. Some jurisdictions will require you to pay taxes separately to county, city or similar authorities making it more difficult than simply paying your tax burden to one authority and being done with it. Consult with you local authorities and make sure that you know the rules under which you are doing business. Ignorance will not suffice when dealing with taxing agencies wanting their “pound-of-flesh” and fines could run you $500 a day! Free in most cases.
If you have a direct marketing business your tax is paid by the company in all cases we are aware of, but you will want to ask and make sure.
5 Set up a business checking account.
It is important to separate your personal banking from your business banking. Taxing authorities will look at a co-mingled personal/business account as a hobby and it gets tricky keeping everything separated for documentation purposes. Most banks will set you up with a business banking account for free. If your bank does not, go somewhere else. They should also provide you with free checks and might even pay a small amount of interest on your average balance. In order to set up a business banking account you will be required to have a DBA and Social Security number OR EIN. Use your EIN! Free.
6 Acquire your business cards.
Be sure to use large enough font and a color scheme that allows your clients to read them easily. Color schemes can make a huge difference on what type of impression you leave. Dark fonts on a dark background are almost impossible to read and most people will not waste time trying to "translate" your card. Make it easy for them to read it. Another common mistake is putting too much information on a card. You do not want to overload the recipient with verbiage; you want to leave an immediate and positive impression. Check and double check for spelling errors. Nothing says "unprofessional" more than a business card with misspelled words.
7 Acquire a simple and inexpensive way to document expenses.
Tracking expenses and mileage is incredibly important for several reasons; save you thousands of dollars each year in legitimate tax deductions, save you time sorting receipts and reinventing your expense record at tax time, avoid losing receipts, bullet proof your records in case of an audit and much more. Watch a short video by clicking 'here'.
Keeping track of your business expenses will save you money, time and anxiety, but if it is not simple and easily accessible you probably will not use it. That is where ExpenseDocs comes to your rescue. ExpenseDocs allows you to thoroughly document expenses from almost anywhere, safely and securely. When you need a categorized summary (monthly, quarterly, annually, etc.) simply choose a date range and click a button. Your categorized expenses are totaled for you. It is that easy. There are more features that will assist you in documenting your business as well. You can even enter expenses over your iPhone! Contact us at for a promo code and get a free months' trial.
Starting a new business is exciting. Keep it that way by getting off to a good start. Be sure to take care of the essential issues that affect your business and don't spend too much time on issues that will not keep you compliant, networked and most of all, profitable. These seven simple suggestions will go a long way to helping you do just that.
If you have questions or would like assistance in getting off to a great start with your new business we will gladly do so. Email your question to us and we will answer. Should you desire a consultation let us know and we will set it up. We are committed to helping people start their new businesses with a sound footing.
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