Identifying Your Perfect Business

Choosing the right business to start is a very important aspect of business ownership. If you choose the wrong business you may pay for it with your life. No, you won’t die. But you might wish you were dead. Nothing is worse than having to do something every single day that you hate. Alternatively, you might choose something that is not profitable, and due to poor research or planning you waste a lot of time and money starting something that never had a chance in the first place.

Choose a Business You Understand

If you start with what you know, you will be ahead of the game. What hobbies or interests do you have today that could translate into a potential business? What topics or subjects are you passionate about that could be turned into a for profit business? Choosing a business that you already know and understand will go a long way toward creating the perfect business for you.

Choose a Business That Excites You

If you know a lot about something but it bores you to death, it might not be the right business for you. However, if you can identify something that you understand and love you’re heading down the right path. Typically, if you really know something and love something, you’ve also learned how to make it better. If you’ve identified a way to improve something that already exists, and you understand it and love it, that might be the perfect business for you.

Choose a Business Where Your Skills Shine

You might understand something, and love it – but if you’re not good at it, you won’t be successful. Sure, you can outsource your way to success in some niches, but when you’re first starting out you probably should choose a business that your skills match. Write down what skills you currently have to help determine whether the business you understand and love fit within that criteria.

Choose a Business Where You Can Earn Money

There are lots of great ideas that are so focused that you simply won’t make enough money. Determine whether the marketplace exists for your idea. Also, can you realistically finance the beginning of your business idea for an extended time without earning any money? Can you work at your current job while you start your business so that you don’t have to get any outside money to make it work?

Choose a Business That Fits Your Lifestyle

Do you want to spend more time with your family and friends? Do you want to travel a lot? Are you okay with having to work 14-hour days, nights and weekends? Finding a business that matches the lifestyle you want to obtain will go far in helping you become not only successful but also happy with the success.

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Unless you want to work until you drop dead, it’s imperative that you think long and hard here about when you plan to stop working. What is your exit strategy? Do you want to build a business that you will sell to investors, take the money and run? Do you want to build a family business that your children will take over? Do you plan to build a business that disappears when you retire?

There are no right or wrong answers here. Choosing a business that makes you happy, earns you the sort of money you need to earn, and lets you stop working at some point are essential choices that you will need to make if you are to find the perfect business for you. The answers are personal in nature and dependent upon your passions, needs and desires. The important thing is that you give it some thought before you get started.

 

 

Business Start-Up Legalities

 

As the saying goes, nothing is done until the paperwork is complete

A lot of people jump into starting a business without giving much thought to the business start-up legalities. This can become a problem. While each country, state, city or province has its own rules, there are some basics to consider. It’s important to at least know where to look for the information.

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Decide the Type of Business Entity

Starting a sole proprietorship is the simplest, and no paperwork needs to be filed that is special. However, if you want to start any other type of business entity such as an LLC or Inc., you will need to file special paperwork. There are websites today that will help you file the paperwork if you don’t want to hire an attorney. However, it is highly recommended that you hire a business attorney in your area to handle these issues.

Choose a Business Name

If you’re not using your own name as part of your business name, you’ll need to find out if the name you want to use is available. Depending on the type of business entity you choose, such as sole proprietorship or LLC, there are different rules regarding business names. You may need to file a DBA (doing business as) in order to conduct business using that name. If you have a corporation and you want several different businesses under the corporation, you’ll need to file several DBAs.

Obtain a Federal Employee Identification Number (EIN) (USA)

Even if you have no intentions of ever hiring employees, this is something that is important. You can do it right on line and you don’t even need to have a business license yet to do it. In fact, you should do this prior to getting a business license so that this number can be on your business license. Use this number instead of your social security number anytime you do business with anyone. It’s safer because you can avoid the problems with identity theft, and in some cases it is required to have this number to be seen as a real business.

Get a Business License

Each country, state, province and city has its own rules regarding business licensure. Most cities and counties require even a home business to be licensed. In some cases you will need state licensure. The best place to find out what you need is to go down to your local court house and ask or look up the search terms, “Getting a business license in Your City, State”. It’s usually a very simple process which requires a small fee.

You will need to renew this license each year. Depending on your type of business, you may need other permits and licenses to be legal. You can go to your local SCORE office for more information and help.

Open a Business Bank Account

Depending on your type of business, you may only need a separate personal account. Business accounts can be expensive. But, you do need to open a separate account. In many cases if you don’t have a business account you won’t be able to get a merchant account enabling you to take credit cards. If you plan to use PayPal, check the current rules and terms of service to ensure that you can be compliant. You will need your EIN and your business license to open a business bank account.

These are just a few of the legalities of opening a business. Depending upon your type of business, it may be more or less complicated. However, don’t ever shy away from making sure the paperwork is done, and done right, when embarking on business ownership. Doing it right from the start will ensure your continued success.

 

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