Thinking About Starting a Small Business?
If you're considering starting a small business but feel hopelessly lost and intimidated, this blog is for you. It'll help you make the best decision for your situation and understand the basics of opening a small business.
This blog is for anyone considering starting a small business, like you. So if you've ever thought about it, but never actually did anything about it, this is the blog for you.
I'm Hannah Benzakouris . I'm a business owner and entrepreneur. I started the Business Mentoring Program in 2008 to help others make business decisions that align with their values and goals . This blog shares what I've learned over the years from running my own small business and consulting for others who want to start their own businesses in the next 5-10 years.
In this blog, you'll learn the basics of starting a small business. This includes what skills, resources and mindset you'll need to succeed.
I give this information freely to help others be successful in their own small businesses. If you've ever thought about starting a small business (maybe because of your job or it's your passion), I want to help.
If you're curious about starting a small business but still feel discouraged, then take heart! Here's why...
We all know someone who started a small business with little or no experience and did really well.
For example, think about your favorite celebrity. Claudia Schiffer is a great example! Ten years ago she was just an ordinary model who did not have a clue how to run her own business. Today she has so many amazing products and is one of the most successful entrepreneurs in the world. She started her own business, made things happen , worked hard and was an inspiration to many!
So what's the secret? How did she pull it off? I'd love to find out!
I do believe that anyone can start their own business from anywhere in the world. Whether you're 18 or 60 , all it takes is a desire to learn, passion for what you're doing, support and resources .
I encourage you to start your own small business. If you've ever thought about starting one, but never took the first step, this blog is for you.
Enjoy!
E-mail me with any questions , comments or concerns. I'd love to hear from you!
First Step: What Is a Small Business?
A small business is an independent company where two or more people run their own company (or sole proprietorship) without paying employees and without incurring liabilities or debts in excess of $10,000. The term "small business" can also refer to a family-owned business . For small businesses that have employees, it means they must have fewer than 500 employees worldwide .
The name of the business is called a "fictitious name" or "doing business as," which must be registered with the Secretary of State in each state where the business operates .
You can run your small business from home or an office. You can also run it from pretty much anywhere you wish, provided there is Internet access .
You can work for yourself or someone else. You can also start your small business and then sell it later on. Conversely, you can start a small business because you want your own company and then go back to work for someone else at another company after it succeeds.
In a nutshell:
Small businesses have fewer than 500 employees worldwide, or have not hired any employees since February of the year before the business was formed. They use a corporate name (fictitious name) or doing business as ( DBA ) name and are located in one state. They are generally considered to be sole proprietorships , but co-owned companies (or more than one person on the same payroll) are also common .
Although small businesses often start with a shoestring budget and minimal resources, many eventually grow into "startup hotspots" . They often hire employees and are just as likely to become small- to medium-sized businesses within 10 years .
Before the Small Business Act of 1958, there was no legal definition of a "small business." The term arose in the 1950's during President Eisenhower's administration when the Small Business Administration ( SBA ) was created. It set a limit on how many employees or revenues could be a small business, so that all kinds of businesses could benefit from government programs, services and protections.
Ways to Start a Small Business
Starting your own business isn't easy. So the first thing to do is to analyze your situation and determine the make up of your team.
Five years ago, I had no clue how to start my own business. It wasn't just that I didn't have any experience. It was also that I didn't feel trained or qualified in anything related to running a business. And because I did this on my own, it was also a pretty scary prospect!
I started by figuring out what resources I needed and how much money it would take for me to be successful-and more importantly, keep the business growing.
Here's a quick overview of some of the resources you might want to consider...
Financial Resources
The most important financial resources are in the form of capital and credit. You'll also need a team to get your business off the ground, so I discuss that below:
Capital . Depending on your business plan, you may need anywhere from $5,000 to $500,000 or more. This is so you can start up any business and pay for the basics-like office supplies and legal fees-if necessary. Terms for small businesses that require financing don't generally involve interest. However, if it takes longer than expected to pay back your capital, a lender might charge an interest rate of 10% or less as an incentive .
If you can't get the money you need, try to find angel investors who are willing to support the growth of your business. These are people who have their own businesses and want to get involved with yours in exchange for getting a stake in it. There's no guarantee, however, because they'll want to see a solid business plan and return on investment before they give you any money or lend their professional expertise.
Number of employees . If you're starting a small business and hiring employees once it grows beyond $10,000 per year gross revenue (or $5,000 if your business is in retail), then you're required by law to pay state unemployment taxes .
Conclusion: The more people you hire, the more taxes you'll have to pay. So if you want to avoid this, outsource certain parts of your business .
Business Licenses and Permits :
Every state requires businesses to have licenses or permits in order to operate. Business licenses are usually easy to acquire and generally cost between $50 and $300. Business permits may cost a little more but can vary depending on the item itself.