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Is Opening a Business Right for Me?

5 Things to Consider When Opening a Business

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Owning a small business is a great way to make money. It takes hard work, careful planning, and persistence to run a small business successfully. Many small business owners start out by working from their home and then expand. Before you make the decision to walk away from your career, make sure that opening a business or becoming self employed is right for you. There are many different small business options to choose from.

1. Choose a Business that You Believe In

You should choose a business that you believe in or is something that you love to do. For example, many people who love to sew, open businesses on Etsy and create items and sell them online. Additionally they may visit craft fairs and sell items there. Eventually they may branch out and open a shop. Starting small can be a great option. However, you may want to choose a business like a franchise that offers support and guidance in how to set it up. This option works as well, but you will need a larger start up cost. You will also need to devote full-time work to it, which means you do not have as much time to let the business slowly build.

2. Consider Start Up Costs of Opening a Business

There is always the option to have a bricks and mortar business. You can do this by opening your own type of business or buying into a franchise. The initial start up cost will be more if you are opening up a business and hiring employees right away. If you go with a franchise they may have extra resources available to you to help you succeed.

3. Use an Accountant to Help with Business Costs

You should hire an accountant to help you with your payroll taxes, and other expense accounts. You may be able to do all of this on your own eventually, but having someone help you at the beginning will prevent you from making serious accounting mistakes at the beginning. You should build your business slowly. Listen to the advice of your accountant, and be aware of where you are spending your money. Take the time to find an accountant you can trust before you open your business. This will make managing everything much easier.

4. Do You Have the Commitment to Open an Business?

In the beginning, you will need to be very hands on in your business. You should be prepared to make a large time commitment to make sure that it succeeds. An online business may actually require less time, and allow you to do the parts of the business that you enjoy the most. It is important to carefully consider what your strengths are and what you need to do in order to succeed. If you do not want the additional responsibility, than a second job or changing career paths may be a better solution to finding more money.

5. Get a Business License and Insurance

Additionally you should make sure you are following the laws and regulations of your city government. Joining the small business association can help you to make contacts and may help you find someone willing to mentor you, as you struggle with the first year or two of being in business on your own. Do not forget to get insurance to protect your business.

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