So, a friend of mine approached me last week about wanting to do a start up company. I'm not sure if I could be totally on board with this.
I think the idea of it is fun but, I don't know if she realizes all that would go into a venture like this. We're thinking of lifestyle organization.
She's a SAHM and I work full time. She has one kid and I'll have 2. For those who have started something on your own, how hard was it? Did you take any business courses? Were you afforded more time with your LOs? Was the initial cost manageable or through the roof?
I'm just not entirely sold on this.
Re: Not sure of a clever title, so went with this one?
Starting up your own business is hard. It takes a lot of time and commitment, and you need to do your research and preparation. You need a business plan and a financial forecast.
After that I would contact a lawyer and have stuff made legal. For us getting the llc finalized gave us tax numbers and allowed us to have accounts at the bank. From their we can have a line of credit at the bank and he is able to be tax exempt on some stuff. An accountant is also helpful as you have a lot more to keep track of especially come tax season. For us, we have employees who require 1099 forms, certain things are tax write offs, we have to worry about depreciation on equipment and our building, and then actually file the taxes.
We have done a very moderate amount of advertising. Word of mouth has worked great for him but that might not be the case for you. Easy things would be a Facebook page, registering with the better business bureau (don't pay to be part of it just register and you go on the website), pens, hats, shirts, license plates, and business cards. We also try to support a few local 4H clubs. Maybe look for a way to give back to your community after you are established.
There are times it isn't easy or fun. Then there are times when I realize this is exactly what my hubby is supposed to be doing. It has allowed him more flexibility and freedom in his schedule and he is his own boss. We have met a lot of wonderful people that have hired him to do their fence for them. The scariest thing is worrying if he will stay busy and have enough work but that hasn't been a problem yet. Good luck to you!!!
It was nice for my dad since he could make his on schedule. If I was not helping with the administration side he would have been working 10 to 12 hour days.
With us both working other full time jobs it took at least 6 month to get things set up ans off the ground.
I'd recommend a free meeting with a SCORE advisor for help thinking through your plan, they also offer entrepreneurial classes which will help immensely. Also a great accountant and lawyer but to be honest we mostly use our accountant.