Wrong Reasons to Start a Small Business

Entrepreneurship through small business is an enticing path but it’s not something for everyone. A good business idea, the need to create something, or a smart market opening can be a good foundation to starting a small business. But on the other side of the coin, it’s essential to know the wrong reasons for kicking off a business. Jumping into the small business bandwagon for the wrong reasons can doom one to fail even before they get started.

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Here are the biggest bad reasons to staring a small business:

  • Making a quick buck

Regardless of how simple or inspiring your small business start-up appears, it’ll never take off. In other words, there’s no shortcuts to making a mint, much less if you happen to do it without help. Starting a small business is similar to prospecting. You may have heard of striking gold in business but the truth of the matter is, prospectors work hard to gain minor successes in the process. If you’re into small business for that lone nugget, there’s a good chance of you not finding any small nuggets that are highly essentially in get there.

  • Working for your own

In any position within an organization, you’ll have to answer to somebody even if you happen to be a lone worker. The people you answer to may include employees, business partners, bank, investors, etc…

There’s accountability tied in any business relationship you make. As a result, you’ll have to answer to all of them. If you’ve dwelled in an illusion where you won’t have to deal with what anyone has to say or want, you’ll likely fail. Working and answering to others is an essential aspect of a successful small business.

  • Demanding more time

Ask any small business owner — finding time for oneself is nothing but a myth. Running a small business is constant. As a matter of fact, your schedule may not be as flexible since you’re frequently on call even if you’re away from communicating with others. Even if things have come to a standstill, you’ll still be thinking about your business regardless. So if you think entering a business is to give more time and flexibility for yourself, then going for a start-up should never be pursued in the first place.

  • Everybody is doing it

If you want to start a business because everyone else is doing it then something is wrong with you. It seems everyone wants to get into business nowadays. Even if people don’t have any business, they’ll start talking about a start-up. It’s important to keep this mind: the main reason to start a business is because you have a good reason to so. Talking about a business may be easy but the process of starting one is difficult. Ensure you start one for the right reasons.

If you’re thinking of starting a business and taking the plunge, look into the reason why you want to make the move. If you want to succeed in a small business by working with others and dedicating your time to expand your customer base and product/services, by all means, pursue it!

Small Business Internet Marketing Tips for Entrepreneurs

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Online corporate giants frequently intimidate business owners who want to start a small business over the internet. Obviously, these online giants have the finances, employees, and time to make their businesses even more lucrative. Internet marketing in a business can cost a lot of money and as a result of this, small business owners are often discouraged from venturing further despite their planned internet marketing strategies.

A lot of people have no idea that internet marketing isn’t always costly since it’s a matter of being efficient. For any small business owner who want to know about internet marketing on their own, here are several useful tips to help carry out an effective internet marketing strategy:

  1. Opt for free tools

Small business owners with little or no experience are easily influenced to buy any internet marketing tools via alluring advertisements. The best advice: go for a free internet marketing tools that help market your website, create traffic, and learning online marketing strategies in the process. You could make a purchase of an internet marketing app only when you have a complete idea on how it works. Never waste money on a software that won’t maximize your internet marketing potential.

  1. Start working on an e-mail campaign

An e-mail campaign is known to be the most effective and personal method for internet marketing. Connect with customers who have shown interest in your services or products. By doing so, your internet marketing efforts will ultimately pay off via direct sales from customers who openly subscribed to your e-mail updates.

  1. Use social media for marketing

Try to connect with as many people as you can through popular social network outlets such as Twitter or Facebook. Signing up is simple and you can easily spot potential customers by adding contacts and posting updates regularly. Social network contacts are virtually unlimited and you’re completely in charge of making your network grow.

  1. Offer freebies

An ideal marketing method for small business is by providing freebies and other online downloads to lure visitors. Participate in forums and impart your business knowledge and experience. Prove to people that you’re a small business owner who’s interested in your customers as opposed to going for a money-grabbing strategy.

  1. Involve YouTube and other Social Channels

Nowadays, people prefer watching videos than reading text. Try to be active in YouTube and post any videos related to your business. These can be things such as simple DIY repairs (if you’re a plumber or an electrician) or something else. This internet marketing method is very effective in reaching out to local audiences.

Kicking off a small business through internet marketing is an aspect that almost anyone can perform. While it may not be difficult to start a small business, doing it correctly may pose some challenges. By paying attention to the internet marketing tips indicated, you can gain exposure of your small business and eventually profit as your customer base grows.

Photo Credit: Flick’r User Bruce Clay Inc

How to Set Up a Small Business with a Small Capital

Starting a small business entails a lot of thinking and planning since faulty ideas, start-up capital, and monetary issues have led to a huge percentage of small business failures. Successful small business owners all too well that businesses should begin with small expenses in order to succeed. By keeping such expenses under strict control, there’s a good chance a small business to make huge profits in the long run.

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Photo: Flick’r Dean Myers

Here are some ways to help you start a small business with minimal capital:

  1. Be knowledgeable of today’s business

Adequate research and a good knowledge of the latest business trends are a representation of essential requirements for a profitable small business. While there are certain business consultants who charge a lot of money to conduct such services, a successful business owner utilizes a number of hard copy and online sources to look into business requirements, determine possible competitors, and make start-up assumptions. Some businesses, such as medical and tech firms, require a huge capital and can’t be launched cheaply. There are other companies that lets entrepreneurs start off a small business with minimal capital.

  1. Maximizing Open-Source/Free Resources

A majority of success in today’s business depends on a consumer’s view in terms of company size. While commercial resources employ costly integrated voice response phone systems and virtual conferencing, there are other efficient resources available for free via open-sourced channels over the internet.

For instance, Google Voice lets small businesses acquire a phone number and create a big business phone image free of charge. On the other hand, Google Wave lets business personnel conduct virtual office meetings, collaborate on projects, and share documents. A plethora of open-sourced apps today lets small business owners create quality documents, spreadsheets, and presentations for free.

  1. Pay attention to cash flow

Know the essence of cash flow and recognize that poor cash flow can lead to failure in any small business. When certain big customers make an order placement, they typically hand out a purchase order as opposed to a pre-paid transaction. You’ll need to gain the required items, keep them stocked, processed, and have the order send prior to any payment. One thing that can really help cash flow is the astounding number of tax benefits that the business owner gets from the IRS.

Payment may take up to 60 to 90 days. Initially, you’ll need to foot the bill on the items and tie useful cash to be utilized for other essential business operations. Keep track on any cash flow or expenses to ensure your small business will remain profitable.

  1. Setting up a website

With a huge percentage of the world having access to the internet, small business owners shouldn’t ignore the power of a well-made and professionally designed website. While there are web designers that charge a lot for setting up a site, there are a plethora of free tools available that can create attractive web pages in a cheap and simple manner.

Certain open-sourced apps lets users craft a professional site with little effort, and there are even some that have a direct interface with e-commerce bundles that process internet-based sales. Utilizing an open-sourced app to create a web page minimizes expenses related to making an online presence. At the same time, business owners can find a dependable web hosting at an affordable monthly cost.

Regardless of the kind of small business you have, a little of bit of cash is necessary. This is due to the fact that it plays a big role in today’s business. The good news is, there are numerous small business opportunities available that involves a small capital. By playing it smart and being efficient with startup costs, small businesses will eventually be rewarded with profits in the long run.

5 Things Small Business Owners Should Do During Tax Season

Tax season is already stressful for a person dealing with personal finances. But when it boils down to finances of a small business, it can be highly stressful. Just like you would typically deal with your own finances, your current small business will need to be ready for that time when business taxes are due.

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Here are some things to help your small business be ready when tax season comes around:

  1. Organize your books and records

This process entails gathering your previous tax forms, expense receipts, invoices, bank statements, and other pertinent documents for bookkeeping. Organizing your records should happen way before tax season hits. Secure your receipts in one area. You can even convert your receipts digitally, but keep your original receipts in case something goes wrong with your PC. Making use of file binders or cabinets to keep your documents can be of big help when you need to file taxes.

  1. Keep in touch with your tax advisor

Regardless of how long you’ve been doing taxes, when it boils down to any small business, you’ll want to have a tax advisor look into your taxes before submission. They’ll help you by getting the necessary tax deductions you’re qualified for and hopefully save your small business money along the way.

  1. Gather the necessary documents required

When it comes to your employees, you’ll need to hand out their W-2 forms by the end of the first month of next year. You’ll also need to send them to the Social Security Administration (SSA). The W-2 indicates the overall earnings that were paid and the withheld taxes from the previous year.

Aside from the W-2, you’ll need to submit a W-3 form before February closes. The W-3 form basically indicates the overall W-2s. For workers making at least $600 in the past year, you need to have kept track of certain things from the previous year. Possessing W-9 form records — business licenses and certifications of a contractor — can aid you in getting the 1099-MISC form ready for those contractors. The form should be sent to the contractor by the end of January. This will highlight payments made by each contractor.

  1. Do research

Doing so will help you determine the kind of deductions you can use and see if any write-offs is applicable to your small business. This may include anything from the latest equipment purchase to your company vehicle. One deduction you haven’t thought through is business insurance. In certain business insurance policies, insurance premiums may be factored as a business expense and are considered to be tax deductible.

  1. Make paperwork a priority

You have a lot on your end when it comes to running a small business. You may be tempted to prioritize less on your financial paperwork. It’s important you look into your tax issues in a timely manner. Missing out on a specific file date will lead to penalties and accumulation of back taxes. Putting off your back taxes can snowball the situation up to point you’ll be overwhelmed with tax debt. It’s best to stray from tax liens, wage garnishment, and other fines by making the right payment prior to the deadline.

Tax laws are complex for anyone especially for small business owners. They may, at times, seem like impossible to comprehend. In addition, a tax error can lead to severe consequences. Whether you have plans on collaborating with a tax consultant or you’re confident enough to file taxes on your own, you’ll need to keep the previously mentioned tips in mind to ensure the financial future of your business.