An annual report that tracks entrepreneurial attitudes and trends over time suggests that many Americans are feeling more hopeful about their business prospects. In fact, start-up activity rose to a 14-year high in 2012 (most recent data available).1
Do you have an idea that you would like to turn into a profitable business? Here’s a closer look at some important first steps in the entrepreneurial process.
Research the market. Find out all you can about your industry. Does your idea fill a gap or improve on competitors’ existing offerings? Be sure to check for patents or trademarks on products that may already be in the works.
Make a test run. Taking your idea to several potential customers, before you invest too much time or money, may help you refine your product marketing and sales strategy.
Find out what's happening in Huntingtonwith free, real-time updates from Patch.
Focus on funding. It could be months or even years until a new venture is profitable enough to provide a stable income. In the meantime, where will the capital come from to get off the ground and pay your own living expenses? Bootstrappers may depend on their own savings and early company revenues alone instead of trying to raise money from outside investors.
Select a structure. What kind of business structure are you going to establish? Some of the most common operating structures are sole proprietorship, partnership, corporation, S corporation, and limited liability company. Each type uses a different federal tax form, and the one you choose also determines which business taxes you will pay: income tax, self-employment tax, employment tax, and excise tax.
Find out what's happening in Huntingtonwith free, real-time updates from Patch.
Consider tax and legal responsibilities. The IRS requires businesses to use a consistent accounting method for the reporting of income and expenses, so choose a method carefully when you file for the first time. Keep good records to help support figures listed on your tax return. If you plan to hire workers, you may also need a federal Employer Identification Number for tax purposes.
Write a business plan. Creating a document that outlines details of your new business venture — including the business model, costs, as well as the other aspects listed above — may help you anticipate and prepare for some of the potential challenges.
Our philosophy is to listen, discuss your options, and present solutions. Click here to watch our short video and learn how Ten Haagen Financial Services may be able to help you with your goals and needs.
We welcome your questions and comments. Remember, when planning your financial future, the sooner, the better!
JON TEN HAAGEN, CFP, RPC
Your Investment Portfolio Repairman
Founder and CEO
Ten Haagen Financial Group
191 New York Avenue
Huntington, NY 11743
631-425-1966
516-658-2827
jonlth@tenhaagen.com
www.tenhaagen.com
Connect with us on LinkedIn and Facebook.
1) Global Entrepreneurship Research Association, 2012
The information in this article is not intended to be tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Emerald. © 2014 Emerald Connect, LLC
