The motivation for starting a business varies from person to person. Being your own boss can be empowering, gratifying, and liberating. However, it may not always be as glamorous – or as easy as it looks.
Some argue that entrepreneurs have a unique set of DNA that allows them to thrive in environments that are volatile and lack a certain level of corporate routine. While the DNA of an entrepreneur is debatable, there are certain traits akin to many of entrepreneurs: They do not fear failure. They trust their instincts. They know how to sell. They think out-of-the box. They are self-starters. They are calculated risk-takers. Good traits to have when you are the boss because you will need to be able to act quickly and decisively when decisions need to be made.
When you are the boss, you will work a lot of hours. Gone are the days of 9 to 5. However, in most cases the hours you choose to work will be up to you. Be prepared to work in and on your business considerably more than what you may be accustomed to – especially if you are transitioning from a traditional office setting.
Launching a business requires you to have a strong operational understanding of the various elements of a business. While it’s virtually impossible for you to effectively implement each element independently, you need to be aware of what needs to be done in order to know whom you need to hire to do it.
Here’s a short checklist of the elements you will need to get started on the road to being your own boss:
Give it a name. What will you name your business and why? How is the name relevant to what the business offers? Will the name be relevant in 3 years…5 years? The overwhelming majority of businesses today have a digital presence. Do your homework to see if there are other entities already in business using the name you intend to use. Find out if the domain name and social media handles are available too.
Business plan. Put it in writing. Business plans are a good guide to help keep you on track and in some cases, they are requested when seeking funding for your business.
Accounting. Secure a federal tax id number, business bank account (always keep your business and personal finances separate). Consult with a qualified accountant to ensure you are in compliance with tax laws (federal, state, local, and in some cases town/city) regulations.
Legal. Determine the appropriate structure for your business, secure the necessary permits/licenses that may be required for your business type, and register with the state. Visit with an employment lawyer or human resource professional regarding employer responsibilities if you will have employees.
Location. Will this be an online business only, brick and mortar, or both? Location is everything when it comes to brick and mortar businesses. You can have the best state-of-the-art carwash but if it’s built in a geographically undesirable location with little traffic; it won’t matter.
Operations. Chart a plan for the day-to-day management, marketing, sales, business development, fulfillment, and execution of your business. You will want to have standard operating procedures in place for quality control and consistency.
Exit Strategy. Every business needs one. What’s your end game? Is it to become a franchise, or be acquired by a larger company? Or something else? Whatever route you choose, identify it early on so you have clearly defined objectives to work towards.
If you are considering venturing out on your own, consulting with a certified tax professional and a lawyer – preferably those with expertise in working with small businesses and entrepreneurs. It will be well worth the time and resources spent to ensure you have a solid foundation for your business.
Good luck!