Understanding Business Inception

Understanding Business Inception.

When you start your first business, there are definitely going to be some problems in the initial months. However, the obstacles you’ll face on the road to success are well worth if your company survives. As a small business owner, what do you think are the biggest issues affecting small business today and why? Small businesses create about two out of every three new jobs in the U.S. each year. More than half of Americans either own or work for a small business. Small businesses are a very important part of the American economy. Starting any business has a price, so you need to determine how you’re going to cover those costs. Understand that your choice of goods will have some effect on how much you’ll need to shell out upfront. So, keep the following in mind:

Getting Paid

  • Wherever possible, collect 10%, 15% or 25% of your fee upfront.
  • What good is being your own boss if you don’t get paid for your work?
  • Your clients’ reaction to that request will tell you a lot about whether they’re capable of paying you.
  • Always use contracts and clearly specify what the deliverables are and what and when people will pay you. Make sure the contract has been acknowledged by the client.
  • A contract is not only important, it also shows professionalism.
  • By having a contract, you’re saying that you play for real and that you’re someone whose business people need to take seriously.

Self-Employment Taxes

  • When you’re self-employed, you shoulder the entire amount that your employer would withhold when you’re an employee.
  • Roughly 15.3% of your income is withheld as an employee, to fund Social Security.
  • You pay half out of your pocket, and your employer covers the other half. As an employer, you don’t have to make quarterly payments to cover the tax, but you can avoid getting stung at tax time by setting aside funds to cover those taxes.
  • Each company has its own unique needs; no two companies are alike.
  • So, see what is required for your company and invest accordingly.
  • While the requirement may differ from one business to another, initially, you must be prepared to run on no profit.

 

Security

  • A modern security system senses events such as motion in a room, decides if the event poses a threat, and then acts on that decision.
  • With its array of electronic components, a good security system is designed to sense, decide, and act.
  • Understand the importance of having the right security system in place.
  • Understand the language of security in order to communicate your needs to a security professional.
  • Understand any proposals you may receive, and make the most of your security system after it is installed.
  • A security system isn’t a do-it-yourself affair, but it is good to know how it works, to make the best use of it.
  • It is good to understand the electronic hardware that performs each function.

Liability Insurance

  • Your liability insurance depends on your business.
  • If you’re a service provider such as a proof-reader or graphic designer you probably don’t need insurance, majorly because you’re unlikely to get sued no matter how poorly you perform.
  • While every insurance agent will tell you that you need errors and omissions insurance, be sure that you will not likely to be sued in the aforementioned services, unless you stole from the business or committed fraud, which is not covered by insurance anyway.
  • If your business is into selling products, evaluating your risk is good.

  • If you sell bottle corks, your liability would probably be limited to replacing bad bottle corks, however, if you mass-produce juices, you have the liability caused by people getting sick on your juices.
  • You’d want product liability insurance instead of having to self-insure that liability.
  • This is when you need to be the judge of the product that you are selling and the liability that comes with it.

Having a website for your business helps keep you up to date with the orders placed, on real time basis, and enables you to never fall back on delivery. Need-based-applications synchronised with your customer’s database can help you keep track of the items sold by your customer, so you know when the next order is likely to be placed. Get a personalized mobile app to connect with your clients on a personal level with customized offers, push notifications and many other interactive features that will save you the hassle of constantly being on calls. Enrol today for our free one hour session to understand more about this. We are here to help your business grow!

Hyper Effects | Grow Your Business

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