Starting a Business
Dear Readers,
Many people just aren’t sure where exactly to start when considering starting a business. Antonia has been cleaning homes for the past few years and thinks it’s time to take it to the next level by forming an LLC. She writes and asks, “What do I need to know or at least be thinking about before I start my own business?”
Josh: Good for her! We need more female entrepreneurs! She’s doing the right thing by asking questions, and by thinking ahead.
Pedro: Absolutely. Asking questions and researching are definitely key aspects of starting a new business or any new venture really. Great resources and websites can be found at: sba.gov, kcbizcare.com, and kansas.gov/businesscenter
Josh: So, what does the HEDC recommend to people like Antonia?
Pedro: There are really five things a person should ask himself or herself before starting a business.
1) What is my business? How will I make money?
2) How am I going to fund my business? What will my business expenses be?
3) How am I going to compete?
4) Do I know the necessary permits and licenses required to register my business?
5) Do I have the financial “know how” and understanding already or do I need training?
Josh: Great questions. A solid business plan should help address the above questions too. Spend time thinking hard about the balance between income and expenses. Don’t confuse one-time start-up costs (like licenses and big equipment) with the recurring operating costs like wages, transportation, and raw materials. Don’t forget about paying taxes either. You’ll need to acquire an EIN (Employer Identification Number). To apply for one, all you need is to fill out IRS form SS-4 or file online. The IRS does not charge any filing fee to obtain an EIN and it is a critical piece of information you need.
Josh: Pedro, are there any local resources entrepreneurs like Antonia could take advantage of?
Pedro: Yes. The Kauffman FastTrac program is a fantastic resource for small business owners. If interested, please contact HEDC to set up an appointment with one of our Community & Business Development Specialists. The HEDC team will talk with new and aspiring business owners to help put together a solid plan for their business. We work with business owners strengthening what they already know about their business and helping them be more aware of what they might not be thinking about.
Josh: Excellent. I hope some local entrepreneurs are able to take advantage of the Kauffman FastTrac class. I know it’s a great way to learn how to set realistic financial goals, determine your businesses unique features and benefits, align one’s business concept with a real market opportunity, learn how to manage business functions, and ultimately find the available resources for ongoing business planning.
We’d love to hear from you. We are offering $100 to the reader whose question is selected next. Please submit your business questions to together@lead.bank
