Making the transition from employee to entrepreneur can be filled with questions, questions, and even more questions. You may wonder what you will do to make money from day to day. How much will you need to make to live and pay for health insurance? How will yearly tax preparation change as a result? These are all valid questions that should be figured out well before you start doing business. Here are a few resources to help you to get your basic business structure in place.
What kind of product or service you will provide?
It is important to be clear on the products and/or services you plan to provide as a business owner. Will you be selling items through the internet or from a brick and mortar building? Will you be providing some kind of coaching services, hair styling, or tutoring that may require some kind of license or degree? This will require that you spend a few hours on the internet researching what it is you envision doing in your business. If you are having a bit of trouble deciding where to begin, you can try visiting your local Small Business Administration office or SCORE and inquire about free mentoring services in California. You can often be paired up with another entrepreneur who knows the business building landscape and can offer a lot of good advice on basic pitfalls to avoid in your journey towards entrepreneurship.
What type of business entity will you choose?
It is important to choose the appropriate business entity before beginning your business. Business entities include a sole proprietor, limited liability company, or a corporation. A California business lawyer can help you decide which entity is best for what you want to do. Generally speaking, if your business is quite small and will not have any use for employees, then a sole proprietorship may work for you. However, if you plan on using this company as your sole source of income, you may want to consider doing a limited liability company, or LLC. An LLC allows you to separate your business assets from your personal assets should you be sued. A California business lawyer would best to be able to advise you on the pros and cons of all three entities.
Create a business plan
It is always a good idea for you to have some kind of written plan before beginning a business. When most people think of a business plan, they think of a 50-page document complete with charts and graphs calculating how much they will make over the next 5 years. If you are running a small business that will not require a bank loan or investment capital from other sources, then the 50-page document may not be necessary. There are plenty of examples on the internet of one page business plansthat can be put together in a day or so if you are clear on what services and products you want to provide.
Garnering the right support for your business vision from the very beginning is important to your success. However, be sure not to fall into a trap where your dream and vision for your business gets lost in what other people want to see you do. Be true to whom you are, put in lots of hard work, and success is certain to appear along the line.
Geoff is an entrepreneur in the state of California who has the tools and essentials in running a successful business in the state.