How to Start a Small Business

How to set up a business name easily?

In this article, we will tell you about establishing a business name as popularly as possible. While the web is full of information on the subject, several guides and writings are cluttered with terms so bureaucratic and obscure that the weaker one drips from the ride.

This is a shame, because setting up a business name is not rocket science, and it can be done very quickly, easily, and cheaply from just about anyone - including you!

Why set up a business name?

If you have a fire to try your wings as an entrepreneur full-time or part-time, a business name is an excellent form of business for you. A business name is easy and cheap to set up and requires less bureaucracy compared to operating in the form of a limited company, for example.

Business entrepreneurship is especially suitable for a business that is moderately small and based either entirely or mainly on your own work input.

Business benefits

• The cost of setting up a business name is very low: in 2020, the registration notice to the Trade Register will cost 60 euros online and 115 euros on paper. If you do not join the trade register, you can make a declaration of incorporation free of charge using a paper form. However, this is often the wrong place to save, we’ll tell you a little later why.
• The establishment is quick. It is best to fill in the business name establishment form online in a quarter, the processing time of the form is a few days.
• Simple accounting is enough for business name entrepreneurs. After all, it is an easy task to combine income and expenditure, which you can also manage yourself . However, if you accrue even more receipts and other documents, getting an accountant is usually smart right from the start. In addition to accounting and tax issues, the accountant is able to answer a number of other questions that a start-up entrepreneur should consider.
• The tax patterns are simple for a business name: all income of a business name is the personal income of its holder and is taxed as his earned or capital income along with other income. In most cases, the result of new business names is so small that it is worth claiming to be taxed entirely as earned income - this requirement can be made on the business name tax return form.
• The business name allows for proper trading. As an individual, you can only buy and sell to a small extent, but as an entrepreneur, you can start to grow your business. You can also deduct tax-related expenses and acquisitions for business purposes. This means that an acquisition you make for business will reduce the earnings of your business name. When the result of your business name is lower, you pay tax on a smaller amount. In this case, the amount of tax will naturally also be reduced.
• The amount of “paperwork” remains small. To get started, you can declare that you file a seasonal tax return once a year or quarterly if your revenue remains low. In this case, you do not have to pay VAT every month. This will save you some time and also money if you have outsourced VAT calculations to your accountant. If your business is so small that your turnover is less than 10,000 dollars, you do not have to register for VAT at all.
• Completing a business name is a fairly quick and easy operation compared to other forms of trying if at some point you decide this wasn’t your thing at all. If, on the other hand, sales really start to slip, it is very easy to move from a business name to a limited liability company.

Possible risks and disadvantages of the business name

• The financial risks of a business name are your personal risks. In a limited company, the risks are limited to the amount of capital you invest, but as a business name entrepreneur, you are always responsible for the contracts and commitments you make with your personal assets. Because of this, the responsibility for your own finances increases. This is especially the case if you have to make big financial investments at the beginning of your business.
• You’ll have to learn new things about taxation and accounting, but you can’t avoid this in any form of business. Of course, a professional accountant makes sure that things go according to the articles, but you should still be well informed about the basics yourself.
• Business name entrepreneurship looks like a small business. So it’s not, for example, the most credible form of entrepreneurship in terms of marketing, but this, of course, depends very much on the industry. It matters more if you sell your services to businesses. Consumer customers, on the other hand, are less interested in whether they buy their services from a business name entrepreneur or from a sole proprietor running a limited company - the main thing is that the services play.
• A corporation is a wiser tax solution if you are making a hard profit. Everything you earn by business name is automatically your personal income, and with high income, the tax rate also goes high. In a limited company, on the other hand, you can choose to pay yourself a suitable amount of salary and leave the rest of the company's profits to wait for years to come. Similar tax optimization is not possible as a business name entrepreneur.
• A business name makes you an entrepreneur. This affects the benefits you receive, such as unemployment benefits. For example, you may notice this at the stage if you become unemployed from your paid job and at the same time have a side business as a business name entrepreneur.

Here are the 15 steps to a Most Profitable Business:

1. Use the time you have available

No matter how ambitious your business goals are, you can still start a business in your spare time, and align it with your current life commitments. Not everyone has the ability to quit their full-time job to dedicate themselves to developing something of their own, but that doesn't mean you can't get started.

For example, it is possible to create a handmade products business in parallel with a full-time job or start a blog that later becomes a business. If you're looking for more inspiration.

2. Ask yourself: What do I want to achieve with this small business?

Even before deciding what type of business to choose, you should know what you want to achieve, and I say this because not all of us want to undertake for the same reason:

• There are those who want to start a small business to grow and for this micro-enterprise to become a great company. For example, start as a freelance writer and then have a large Digital Marketing company.
• Others just want to find resources to be able to do something very different from their small business. For example, start with the sale of homemade sweets to raise enough money to travel to Europe or any other part of the world.

Determining this is important because you will know how far to project your business.

So right now I want you to choose one of the 2 options:

Do you want a business to get some resources? or

Do you want a business to grow it into a great company?

As we go along, you will realize the importance of answering these questions.

What should you consider before deciding on a particular type of business?

3. Plan effectively

Every effort you put into planning exponentially multiplies your success at the execution stage. For a new business, everything hinges on a business plan.

Successful entrepreneurs write down specific goals. They devote considerable effort to key tasks such as researching their target market, defining marketing strategies, and compiling cash flow forecasts. They also make useful contacts within their industry.

4. Understand business finances

The shared goal of any business is to make money, so understanding cash flow is an integral part of running a business. In this sense, you must understand some basic concepts to start and scale that knowledge as you grow.

There are many businesses that you can start with just a small initial investment, but others will require money for inventory, equipment, or physical space. Therefore, it is essential to have a clear view of your total investment, before spending a penny, as it will help you make important projections, such as when you will break even.

It is essential to have a clear vision of your total investment, before spending a penny

If those calculations show that you need more funds than you can afford out of pocket, you can consider financing options like a small business loan or a crowdfunding campaign.

The accounting should be one of your main financial tasks as soon as you're ready to start shopping for your business. Keeping accurate records of your income and expenses will help you control cash flow and make a smooth transition to working with an accountant or accountant later.

To make the process even easier, consider opening a bank account and having a business-specific credit card, as keeping your personal and business finances separate makes it easier to prepare your business taxes and can also help automate some of the steps.

5. Define an effective value proposition

It might sound complicated, but it's just a matter of making sure that your products or services are more attractive to customers than those of your competition.

Successful entrepreneurs know that no matter how good their offering, they will only be able to attract customers if they have a clear comparative advantage.

6. Surround yourself with the right people

Even if they excel in a particular field, it is rare for an entrepreneur to be an expert in everything (sales, accounting, operations, law, etc.). Good entrepreneurs know how to surround themselves with effective teams to get the results they want.

7. Develop your product or service

You've done the groundwork and understand the finances, now is the time to dive into the product or service you would like to offer.

8. Find sources of help

Federal, provincial and municipal governments and agencies offer a variety of resources to help new entrepreneurs.

In addition, more and more incubators and accelerators specialize in business start-ups. These organizations are very useful for entrepreneurs who want to develop their business network and work in a collaborative space.

You should also take a look at your chamber of commerce, economic development centers, or associations of business leaders. Many of them have mentorship programs that match new business leaders with experienced leaders.

9. Think long term

When starting a business, entrepreneurs naturally focus on the first few weeks or months. However, in many industries, supply cycles can be much longer.

For example, an entrepreneur who develops new software during the first year will then have to devote considerable time to its commercialization. By "thinking long term", entrepreneurs can ensure that they have sufficient resources to put their business on a solid footing.

10. Choose a business structure

Your business structure influences the key parts of your business, from taxes to operations to your personal liability. In this sense, choosing the correct structure for your business will help balance the legal and financial protection you need, with the flexibility offered by the different options. It is an important decision that you should consider carefully before launching your business.

Choosing the right structure for your business will help balance the legal and financial protection you need with the flexibility that different options offer.

Business structures vary by country and area, but two common types, which may have different names in your country, are sole proprietorship and corporation. A sole proprietorship is great if you are the only person involved in the business, and it is generally the structure that requires the least effort, but you are still personally responsible for the business and its activities. You can even hire employees as a sole proprietor, but you will need an employer identification number to do so, which means registering your business.

On the other hand, if you opt for a more formal structure like a corporation it is easier to involve multiple owners in the business, and you will not be responsible for the business personally, but there are more paperwork and steps involved to start and maintain a partnership.

When it comes to choosing a business structure, there are a few factors to keep in mind.

• Where is your business located? The laws of your country describe the different business structures you can form, and whether or not you need a business license to get started.
• What type of business do you have? Some structures are more suitable for businesses of a certain scale or within particular industries. There may come a time when you need to restructure your business to work with new partners. It is not uncommon for large companies to ask their suppliers or partners to have formed partnerships, for example.
• How many people are involved? If you go solo as a solo founder you may be able to consider optimized options. If you have a business partner or multiple people with ownership in the company, you should look for more advanced options to make sure everything is set up and shared correctly.

An accountant or attorney can be helpful in evaluating the different options available in your area and in helping you with the process of establishing your business.

11. Form an Entrepreneurial Team

Since you are aiming to start a small, profitable business, you may be thinking of going it alone. It is definitely your decision.

But I recommend Plan B, working with other people, maybe one more or two at the most, if you don't have a lot of budgets.

That way, they can achieve more successes together, as long as they feel the same as you: desire to do well and obtain positive and productive results.

Thus dreams unite and crystallize with greater intensity.

In this way, you two or three will not be forming a work team, but rather something more important: A Team of Entrepreneurs.

12. Research licensing and regulations

Nobody wants to have legal problems. Remember that your business is subject to the laws that govern business in your area, as well as the laws and regulations specific to your industry. For example, a food service business needs to adhere to specific licenses and regulations to handle the products it sells, but it must also pay attention to the legality of its marketing efforts, and to trademark and copyright laws, among others.

Invest time and money to obtain timely legal advice from a lawyer, who can guide you according to the specificities of your business, such as industry and geographical location, before starting, so that you avoid future headaches.

13. The Business vs The Entrepreneur

When planning our business, it is necessary to define the key instruments that will allow us to develop it, in order to focus on them.

If we have a clear model, let's move on to find the pieces of the puzzle that will lead us to put it together without problems.

In this way, we gain energy, resources, and ideas. Let's do it.

And to continue learning how to start a small and profitable business, we can move on to see what our project requires in order for it to function properly.

Once this is done, we must compare it with our capacities and resources. Is it enough?

In simpler words, we must know what we are going to need to start our small business. This mainly covers 3 types of resources:

• Monetary.
• Humans.
• Technicians.

Whether or not you have these resources will depend on your particular situation. It may be that you have the economic resource, but you are alone and you do not have the human resource.

Or the opposite, you are part of an entrepreneurial team, but you have neither money nor technical resources.

I insist each entrepreneur is a unique case, because he presents different situations and, according to his reality, his challenge will begin.

Each entrepreneur has his own reality

You must be clear that there are no rules that establish that the process of starting a small and profitable business must be one way or another.

Each entrepreneur has his idea, his resources, his planning and, then, in his own way, he will have to carry out his execution process.

14. Promote your small and profitable business

Advertising and promotion are essential to project your products and/or services and, in this case, your business.

However, each case is unique. An ice cream parlor is not the same as promoting an office cleaning business.

In the first case, there are entrepreneurs who invite their family and friends to try all the flavors of their ice creams, with the aspiration that they are promoted through "word of mouth", as one of the advertising options.

That couldn't be done by the one who set up the small business to clean offices.

It is likely that your projection alternative is to produce flyers or business cards and deliver them to the gates of buildings in your sector.

In short, the route in this promotional process will depend on the type of undertaking.

It is up to you to choose the option that best suits you, especially the one that suits your business.

15. Start a business and make an impact

Starting a business isn't easy, but it doesn't have to be scary either. Whether you want to sell a product that solves a problem, build a profitable business for self-employment, create opportunities for the people around you, or make some extra money each month, these steps can help you make your dreams come true.

I hope you all have learned something new Feel free to comment down below what's your opinion on this.