Starting a Business

Starting a business starts with being your own boss

Immersion matters

It's always best to have real-life knowledge and actual work experience in the line of business that interests you. Speak to people in the field, research similar products and services and find out how goods or services are distributed.

Consider these managerial tips:

• Take business, management or entrepreneurship classes
• Assess your strengths and weaknesses
• Know your potential competition inside and out
• Stay on top of the latest ideas and trends
• Find mentors, leverage your university and alumni networks

Steps to success

1. Create a business plan

   It starts with a roadmap for your overall venture and how you plan on bringing your idea to life. A well-constructed business plan enables you to forecast your potential earnings, expenses and profitability. It also enhances your credibility with potential creditors and investors should you need funds. And it’s critical when discussing your venture with other advisors.

2. Figure out your finances
   

   Before leaving a secure job for your new self-employed business, think through how things might change for you, both personally and financially. In other words, crunch the numbers.

   • Calculate how much money you'll need to launch your business and keep it running for 12 to 24 months
   • Analyze your personal finances to make sure your necessary living expenses will be covered until your business becomes profitable
   • Look at sales and booked receivables to ensure you can meet payroll and other fixed expenses
   • Regularly compare your actual revenues and expenses to your original forecasts
3. Build your advisory team
   

   Find an attorney who specializes in start-ups, a tax advisor seasoned in analysis and planning and an insurance advisor who can help protect you from liability. We can help you expand your network and make important connections.

4. Choose the right business entity
   

   The kind of business entity you choose impacts many things, including control, legal liability and taxation. Your advisory team can play a key role in helping you choose the entity and structure that's right for you. These are the most common.

Insurance is the primary way business owners protect against risk (for example, fire risk, theft risk, and interest rate risk). Enlist the expertise of an insurance advisor to help identify the kinds of coverage you'll need.

While your attorney sets up your company and your insurance advisor puts protection into place, your tax accountant can help you navigate the numbers and the IRS. In addition to thinking about your own taxes, you'll also need to address withholding and payroll taxes if your business has any employees, including yourself.