This week I’m going to talk about setting up your own business. I'm telling you first-hand, setting-up and running your own business is one of the most difficult things you will ever do. And by far, one of the most rewarding.
Some background information…
My father was in the computer field since 1958; back when computers took up a whole room, were VERY loud and made wonderful confetti from the keypunch cards. One of my brother's was a Comp Sci major back in the early 80s. I, on the other hand, was computer illiterate. Or maybe I was just afraid, or just wasn’t interested, or perhaps it’s just that I had a mental block when it came to computers. Heck, we even had a personal computer in our home in the late seventies and I had no interest in learning how to use it. I loved art and music and sports.
Flash forward a decade or two….
I found out I had a real knack for learning software programs during my first real job as a bank teller and assistant treasurer. I seemed to be able to figure out an application fairly quick and without training. I became quite skilled at Excel and Quickbooks Pro and many other financial software programs. Through an interesting series of events, at the age of 24, I was asked if I wanted to start and be a partner in a software training company, with a new friend of mine, and be the financial end of the business. I said yes.
My friend had a degree in MIS from Pitt and a good background in computers. We spent the next year (yes, a full year) reading, researching, planning and learning everything we possibly could about starting and owning a business; all the while working full-time jobs. In fact, at one point my business partner quit her job and went to work for one of our future competitors to learn the ropes from them inside-and-out.
Introducing STSI...
So, a long time ago, two young gals at the ages of 23 and 25, incorporated to become Software Training Specialists, Inc. (STSI for short). I don’t want to toot our horn, but…… (I said I didn’t want to, not that I wouldn’t). J We really took our time and did things the right way, as far as we were concerned. Within five years, we grew a fairly successful business, at least by our standards. Maybe not by Bill Gates’ or Steve Jobs’ standards of course, but we weren’t measuring ourselves based on their success. Then, when the timing was right, we sold our customer list and assets to a competitor and went to work for a client. We actually still hold the incorporation. Saving it for a rainy day I suppose.
We were well received and we loved what we did. We went on to host the first Internet seminar at the David L. Lawrence Convention Center, we were one of the first companies in Pittsburgh to train Quickbooks Pro, we sat on the Advisory Boards for several schools and businesses, and held positions at our local Chamber of Commerce.
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| Source: http://veresoftware.com/index.php?page=host-a-course |
What you need to know...
I learned so much from this experience, that for years I consulted with people starting-up a business. I enjoyed helping others set-up their businesses almost as much as I enjoyed having my own. Because of that, I thought it might be nice to share some of my knowledge and experience. Here are some suggestions for starting your own business…
- Write a business plan. It’s not easy or fun, but it is important, especially if you have a partner. It is a great way to make sure you all are on the same page and that there won’t be any big surprises along the way.
- Write a proper Mission Statement. Revisit it often and keep it updated. It can be changed as your company grows and changes.
- Set goals. Meet goals. Make new goals.
- If you have a partner, have a legal agreement between all parties as to the division of work and financial input and output.
- Get all legal documentation in order:
- Insurance – for the business and yourself.
- Write a will – plan for the unexpected, you own a business now.
- Retain a lawyer and an accountant. Even if you plan to do the books yourself, an S Corp can get tricky with year-end disbursements, so you should have an accountant review and sign-off on your taxes.
- Keep all legal documentation and financial statements.
- Make backups of all financial software data. This is crucial!
- Read INC. Yourself by Judith H.McQuown. It will get you on your way. And any other books on incorporating and starting a business you can find.
- You can incorporate on your own or with the help of a lawyer.
- Make sure you know the advantages and disadvantages between a Sole Proprietorship, a Partnership, an S Corp and a C Corp, as well as an LLC. before filing for anything.
- Make sure you have the proper insurance for the type of business you file for. Protect your assets.
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| Source: http://openlibrary.org/ |
- If you are eligible, get Women and Minority owned business and Small Business certification (WBE and/or MBE and SBE).
- Subscribe to INC., magazine or utilize their online services.
- Use the fantastic resources at SCORE. It is a group of retired men and women, from all aspects of business, who volunteer their time to help people start a business. We went to every seminar they offered during our year of planning and did a lot of one-on-one meetings with them also.
- Utilize interns; either for credit or money. We had our entire Human Resource handbook written by an HR student at LaRoche College for free. She did such a good job we gave her a handsome reward! (By handsome I mean $$$$, not a good looking guy!)
- Utilize the Small Business Administration site. Apply for an SBA loan.
- Get involved! Network! Join your local Chamber of Commerce and any other professional organizations that suit your type of business. If you are a small, start-up business, you need to network and make all the connections you possibly can. You cannot put a price tag on networking. It is invaluable to a small business.
- Most importantly, PAY YOURSELF. This is very important. A lot of new business owners don’t pay themselves thinking they need to save money. If you do not reward yourself for the hard work you’re doing, you will end up resenting the business and/or your partner. You are an employee of your business. Pay yourself!
Some additional sites to visit:
SCORE is an interesting link. I'll have to check it out. I regret incorporating every tax season.
ReplyDeleteDr C