SECRETS TO SUCCESSFULLY STARTING YOUR OWN BUSINESS (Part 2)

The American Dream is, and always will be, to come up with an idea, start a business and become rich from your own efforts. Based on this motivation, thousands of businesses fail each year, due primarily to not being familiar with the basics involved in running a business.

This 2-part series will enlighten you and give you a number of suggestions you can use to better guarantee your chances for success. This article is written with the warning that any and every business venture contains certain inherent risks and any number of alternatives. We do not espouse that any one way is the right way or that our suggestions are the only way. On the contrary, we advise that before investing any money in a business venture, you seek counseling and help from a qualified accountant and/or attorney.

Once you have made the decision as to which bank is going to handle your account, you'll need your Social Security Number or your Federal Employer's Identification Number, your driver's license, the fictitious name certificate, and if you're requesting a VISA or Master Charge franchise, you'll also need a financial statement.

For corporations, you will also need a corporate resolution approving of the opening of your business account.

You will find that a great number of city business license departments are there solely for the purpose of collecting another tax. Depending on the type of business for which you are requesting a license, the building and zoning people may inspect your premises for soundness of structure and safety. Generally, you will not encounter any difficulties - you simply pay your fee to operate your business in that city, and the clerk types your name onto a city license certificate.

Relative to sales tax permits and licenses, each state's rules and regulations vary widely. The best thing to do is to call your state offices and ask for information concerning registry and collection procedures. Many states require an advance deposit or bond, and you will find that some wholesalers or manufacturers will not sell to you at wholesale prices until you can show them your sales tax permit or number.

Should your business entail selling your products or services across state lines, in another state, you are not required to collect taxes except in those where you have offices or stores. You may find also that your business requires the collection of Federal Excise Taxes. For information along these lines, check-in with your local office of the Internal Revenue Service.

Some states also require certain businesses to hold state licenses, such as those required in many states for TV Repairmen. These are known as "occupational permits" and are most often required of barbers, hairstylists, real estate people, and several other consumer-oriented businesses. If you have any doubts, check with your state offices for a list of those occupations that require licensing.

Any business doing business in any type of interstate commerce is subject to federal regulations, usually through the Federal Trade Commission. This means that any business that shops, sells, or advertises in more than one state is subject to such regulation, and this includes even the smallest of mail-order operations. Normally, very few business people ever have and contact with the federal regulatory agencies. The only exceptions being when there is a question of your operating your business unethically or illegally.

Any business that sells or distributes food in any manner almost always requires a county health department permit. If your business falls into this category, simply call the county health department and invite them out to your place of business for an inspection. The fees generally range from about $25, depending on the size of your business when they first inspect it for permit approval.

There are also a few businesses that require inspection by a fire marshal and fire department approval. Generally, these are those that handle flammable materials or attract large numbers of people, such as a theater. Overall, the local fire department must be allowed to inspect your premises whenever they desire to do so.

You may also run into a requirement for an air and/or water pollution control permit. These specifically apply to any business that burns anything, discharges anything into the sewers or waterways, or use any gas-producing product, such as a paint sprayer.

When that time comes, hire the additional people you need, and your business will continue growing. If you do not, for whatever reason, you will find yourself married to your business and your business growth hindered.

Without a doubt, you will need to check on local regulations relating to advertising display signs. Each city or township makes its own rules and then enforces those rules according to its own thinking. It is recommended that you check before you contract to have a sign made for your business.

The design and placement of your sign are very important to your business - specifically to retail establishments - but let me remind you that your business sign is usually the first thing a potential customer sees and as such, it should catch his eye and leave an impression that lasts. It would be a good idea to ride around your town and view the signs that catch your eye and try to determine the impression of the business that sign leaves on you. This is a basic learning formula for determining the design, size, and placement of your business sign.

Some of the other things to consider before opening for business. If you intend to employ one or more employees, you will be required to deduct Federal Income Taxes, and Social Security payments from their checks. This will involve your filing for a Federal Tax Number and necessitates contact with your local IRS office. Most states have "unemployment taxes" which will have to be deducted from the paychecks of any employees you hire. And there are many states that have income taxes, disability insurance, and any number of other taxes. Again, the best thing to do is check with your local office of the IRS. And above all else, do not forget to ask for the rules of the minimum wage law, and comply.

When your business grows to the point of needing additional help, do not be afraid to look for and hire the help you need. When you are ready to hire someone, simply run an ad in your local paper and/or register your needs with the local office of your state's employment service. Businesses either grow or die, and those that grow eventually need more people to continue growing. When that time comes, hire the additional people you need, and your business will continue growing. If you do not, for whatever reason, you will find yourself married to your business and your business growth hindered.

Regardless of how small your business is when you begin, never walk in with the thought in mind that it is something to keep you busy. Anyone with an attitude of that kind is a fool. You begin and make a business successful to realize financial freedom. Establish your business. Put it on its feet, and then hire other people to do the work for you. And those businesses that require an operations manager, or someone to run a phase of the business you're too busy to handle, hire the person needed or the business will surely suffer.

To protect the investment of your business, you need business insurance. If you've never had any experience with business insurance, simply look under the heading of "business insurance" in your phone directory. Ask for bids from several different companies or agents...Primarily, you should have a policy that gives you general liability, fire, workmen's compensation, business interruption, and vehicle coverage. You may also want coverage against possible losses related to burglary, robbery, Life & Accident, Key Man, and Fidelity Bonds.

As the sole proprietor of a business, you will not be paid as an employee, so there will be no income tax deducted from whatever you withdraw from the company's earnings. What you'll have to do is again check with the IRS Office for a Tax Guide for Small Businesses Handbook, and probably end up filing an estimated tax return on a quarterly basis.

The minute you open your doors for business, you will have to spend some time engaged in the work of bookkeeping. Exactly what forms you use and how you keep your books, should be on the recommendations of a good tax counselor. The same holds true for your overall business and/or payroll accounting system. Look for an experienced CPA that knows the accounting problems to your kind of business and solicit his advice and/or counseling.

If your business is going to involve the possible purchase or lease of operating equipment, again seek the help of your tax counselor for the most advantageous method of obtaining the needed equipment. Arranging for your suppliers to give you materials on credit will depend upon your honesty and personal financial statement. The best way is usually a personal visit to the person with the power to approve or disapprove of credit at the company where you want to set up a credit account. Show him your financial statement and explain your prospects for success. Then assure him that you've always honored all of your obligations and that if ever there's a question or problem, you'd like for him to call you at home. And of course, give him your home phone number.

We won't go into the requirements of advertising your products, services, or business here, but there is something along these lines you should always keep in mind. The best kind of advertising your business can receive is that you do not really pay for - publicity.

When something unusual happens to you, your business, or your employees - that's news, so be sure to tell the news media in your area about it.

In closing, let me say that the most important ingredient of your eventual success will be the soundness of the planning you did before you started your business. Any number of bad things can really throw your business into a tailspin, but if you have done your homework well - really set up a detailed business plan before starting - your losses or setbacks will be minimal. Success takes planning, and within this article, you've got a basic checklist. The rest is up to you. Good luck and may your life overflow with success in all that you undertake from this moment forward.

Read Secrets to Successfully Starting Your Own Business (Part 1).