PADGETT BUSINESS SERVICES®
So...You Want To Start A Business?! Items to Consider...
So you want to start a business. You want to run your own show. Great! Good for you.
There is more to going into business for yourself than just getting business cards printed or sticking up a web page. Unanticipated business expenses can wreak havoc on both your business and personal life. Great expectations are great; realistic expectations are better.
Equipment—No matter what, every self-employed entrepreneur has some equipment needs. Will you need a new computer or upgrades to your existing one? Are you prepared to pay for repairs? Do you have a back-up plan when equipment is being repaired? This may include your cell phone or its charger, your computer monitor, your car, the widget or your gadget-- anything you use which is integral to your business can break down, including your own body and mind. How will your business be handled if you are ill or hurt?
Space—Whether you use your home, your car, your best friend’s garage, an office suite, or Starbuck’s, you need a business space. Will you need a space to build, write, store, or meet with prospective clients? How much space will you need? Will your space meet the IRS requirements for a tax deduction? If you are planning a home office, have you considered the added utility bills, such as increased electricity for computer, lights, etc?
Marketing– This may include additional cell phone time, business cards, advertising in local print media, flyers—printing, paper, design, ink. Don’t let those hidden costs sneak up on you. For example, with an inkjet printer, the ink is often more expensive than the paper, especially if you print in color. What about web hosting? Domain name?
Networking—Although networking is probably the least expensive marketing you can do, it is important to attend networking events for certain type of business. Such events incur costs for meals, parking, travel, etc.
Wardrobe—Will you need a change in wardrobe to maintain the needed image for your new business?
Think about what image you want to project to your target market. If you’ve been wearing business casual at work, and suddenly you have to go buy a couple of new suits, it can add up, and unfortunately, it’s not tax-deductible.
Transportation—Will there be changes in your traveling needs? Gas costs have risen (like you haven’t notice), and if you’re traveling to visit prospects, be prepared to visit the pump more often. Also, your vehicle may need to be able to carry your product or equipment, or you may need to be able to take clients to lunch. Is your vehicle up to the task? You may need to clean out the trunk and back seat and have it detailed.
Filing Fees—Will you be filing a DBA (“doing business as”, also known as “fictitious business name” or “assumed name”)? The laws vary from state to state and country to country, but even if local laws don’t require it, your bank probably will in order to accept checks made payable to the business name.