INTD 55 business practices starting a business

starting a business—initial considerations before starting your own business,consider: job tenure regular paycheck paid holidays & vacation sick leave insurance plans leave behind work at end of day these benefits are not a part of a new business

starting a business—personality traits Do you have the right personality to start a business? Are you in good health? Do you really have all the energy it takes to make this project succeed? Are you a self-starter? Do you enjoy other people? Are you a leader? Are you ready for the responsibilities of a business? Are you a good worker? Are you well-organized?

starting a business—personality traits Do you have the right personality to start a business? Are you a capable decision maker? Do people have confidence in you? How committed are you to running your own business? Do you have the excitement it takes to carry this through? Are you a good communicator? Do you know what you are doing? Have you had any business training?

starting a business—planning ahead a successful business starts with a good plan— components of your plan should include: written action plan clients staff market production resources finances timeline

starting a business—planning ahead written action plan should include: when you expect to start where your business will be located your plan for earning profits what your area of specialty, and potentially highest profit, will be. how you will charge—fees, markup, or hourly rates clients —make sure you have clients lined up; which current clients will come with you? takes several years to develop good client base

starting a business—planning ahead staff —qualified, capable staff are your biggest asset market —make sure there is really a market out there; just because no one else is offering the service, doesn’t mean there is a market production —do you have the ability to produce? plan in advance where your materials will come from resources —make a list—manufacturers, showrooms, dealers, contractors—and take time to develop good rapport

starting a business—planning ahead finances —all business ventures require money how much money have you saved? how much of your own funds are you willing to invest? do you have any equity in a residence or other properties that you could potentially use for borrowing collateral? do you have the ability to obtain a line of credit? do you have other sources of income?

starting a business—planning ahead timeline — how long will it take to make the venture work? can you afford to take that time from your other endeavors? all business takes time—usually 3-5 times more than you would estimate

starting a business—advantages you have complete control you have freedom to be as creative as you want you determine how great the profits will be you have the ultimate job security there is great satisfaction in running a successful business

starting a business—disadvantages running the business demands long hours risk you will lose your investment income fluctuates with success of business responsibility of business is all yours all of the pressures are yours to bear many federal, state, & local laws you must abide by as well as insurance company stipulations

starting a business—getting feedback accountant bankers or other lending institutions business consultant designer financial advisor insurance advisor lawyer

taxes, licenses, name registration & domain name taxes—payroll (federal, state & local), mercantile (local), real estate (local), sales (collected from customer) licenses—many states now require licensing, may require CEUs, may also require zoning, building codes & safety standard licensing to use any other name than your own for your business, you must file a fictitious name registration request if you are going to have a website, important to register your domain name

selecting the right form of ownership for you weigh the advantages & disadvantages of each: buying an existing business sole proprietorship partnership corporation dealerships joint ventures & associations

participation activity: form of ownership research/discussion buying an existing business (1) sole proprietorship (2) partnership (3) corporation (4) dealerships (5) joint ventures & associations (6) …using your textbook & other sources, read about and research your assigned business type …come to class ready to discuss your findings