Building a successful business from scratch is no easy task, but the rewards far outweigh the cons. Entrepreneurship eliminates the salary caps set by typical employment, allowing owners to earn an exponential amount. Though, it’s paramount to start with a solid foundation so that the business has stability as it grows.
Decide on an Industry
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It is important to enter an industry that offers potential, and market research is essential for determining a business type that is in position to grow and thrive in the current market environment. For example, energy, machinery, health care, education, market research and customer service industries are growing. Conversely, video production, newspapers, apparel manufacturing, print shops, textiles and manufactured homes are on the decline.
Decide on a Business Structure
A sole proprietorship can be dangerous because it offers the owner no legal protection from business losses. Essentially, the personal property of the owner and the business property are one and the same. Likewise, partnerships need legal protection from business losses. Consider an incorporation or LLC so that any loss the company incurs does not affect the owner’s personal money or property. Having this business structure in place from the beginning assures that the owner is not personally liable if the business is sued.
Understand the Applicable Laws
Businesses are more regulated now than ever. Owners must know what taxes they are liable for collecting, when and how to report these taxes to government authorities, what licenses are required for the particular business and a variety other regulations surrounding their industry. If this seems complicated, an online MBA program is an excellent way to become familiar with industry laws and stay on the right side of new regulations. This training teaches students what laws currently govern businesses and industries, as well as how to stay abreast to law and regulation changes.
Understand Proper Accounting Practices
A common area where new businesses fail isn't in how well they do the work, but in how the business' money is managed. Hence, it is extremely valuable for a startup company to have a qualified accountant on hand. Not only will this person be able to keep the books straight, they will also be able to make sound decisions regarding capital investments, hiring labor, managing inventory and selecting vendors and supplemental services. Our Lady of the Lake University Resource Center is ideal for learning about important accounting practices, as well as other business and leadership skills.
Our Lady of the Lake University also offers an online MBA degree program, which is the perfect solution for the busy professional trying to start a new business. The classes are flexible, so entrepreneurs can receive the education they need when it's convenient for them. Begin your journey toward becoming your own boss and discover more today.