Not everyone was cut out for the doldrums of the boring 9-to-5 grind. Not everyone was made to serve a boss's whims in a regular work setting. Not everyone could care to ever climb the corporate ladder.
Some folks were made to start a small business. These entrepreneurs are the lifeblood of our economy—those who start small businesses, create jobs, and fuel all of the various markets that exist in our economy.
If you see yourself as an entrepreneur and want to start a small business but don't know what you need to know, then you're in the right place. In this article, we'll give you a brief overview of three crucial things that you need to remember as you embark on this new business journey.
Use the Right Legal Structure
Your business has to be registered as a legal entity in the United States in order for its operations to be legal. There are quite a few different legal structures to choose from, and navigating these unfamiliar waters can be tricky.
The first thing to know is that a sole proprietorship is the right choice for many small businesses with just one owner. It's the simplest form of business legal structures and provides significant tax breaks. If you want to create a multi-owner structure that's slightly more complex, go with an LLC (Limited Liability Company). This structure allows you to form a partnership with other owners but also serves to protect all of your personal assets should the business fail.
You can also incorporate your business as a C corporation. This allows you to issue stock, have multinational operations, etc. However, this would mean a higher tax rate. If you're a small business, it probably just isn't worth it to have your business as a corporation.
Hire the Right People
One of the best tips for starting a business you need to know is to hire the right people. Your employees will make or break your business. Invest the time and effort necessary to find the right people who will propel your business forward upfront, or you'll be paying for it years down the line.
Protect Yourself With Business Insurance
Last but not least, it's important that you protect yourself with business insurance. Whether it's a workplace accident that harms an employee, a bad product that escapes through quality control, or poorly executed service that harms a customer's business, there are many things that can open up a business to litigation.
Having insurance can often protect you from the worst of the damages should such an unfortunate scenario ever arise.
How to Start a Small Business, Made Simple
There you have it—now that you have these best practices for starting a business under your belt, you should have a better understanding of how to start a small business and escape the corporate grind to build your own dream.
For more small business launch advice, be sure to take some time to check out the rest of the SMB articles on the website! Visit the Startups section of the Bootstrap Business Blog to learn how to start a small business successfully in any industry!
