Here at mo-de, we encourage people to run with whatever passion they have because at the end of the day, it’s the people who are passionate about what they do who ultimately decide the fate of our economy.
Starting a business is a lot to undertake, and it’s easy to get overwhelmed before you even officially begin.
To make things a little easier for you, we’ve compiled some of the most crucial, basic steps to creating your own empire.
Before you begin anything—research, research, research. When you’re done, research some more.
Search on Google for similar companies operating nearby, industry statistics, what did and didn’t work for competitors, etc.
The more knowledgeable you are from the very beginning, the easier it will be to catch things before they go wrong. Most importantly, it can give you a pretty good idea of whether or not your idea is worth pursuing.
Sure, there may be a need for it, but is what you’re offering special enough for people to switch brands to buy it?
Always think in terms of the consumer, which in many instances—is you.
Listen to your intuition. Trust what you read online (as long as it’s from a reputable source). And never assume what you’re doing has never been done before.
Before you begin anything, you must have a strategy. A plan of action. An outline of whatever it is that you’re trying to achieve. Think mission, vision and USP (Unique Selling Proposition).
What problem are you trying to solve? Where do you want to be in 10 years? What do you offer that other companies don’t?
Another thing to consider during this stage is money. Start with two columns: one listing your expenses, and the other outlining your assets.
Expenses include payroll, rent, travel and legal costs. These items are considered deductible against future profits, reducing the amount of taxes you will have to pay if your company generates a decent amount of revenue (or, at least, enough to break even).
Examples of assets include furniture, cars, buildings, land, inventory, etc. While these are not deductible against taxable income, they’re going to be a key factor to consider during your bookkeeping process.
In case you missed it, this is business planning, not a business plan—that comes later.
This is when you need to look at your identity as a company: the market and the needs of people within it; how you will pitch your business to prospective customers; and your forecast of success.
Create a general summary of your products or services and how they will appeal to customers. This can include a brief timeline, your initial budget and the things you need to launch successfully.
When you have a strong foundation, small mishaps will impact your company at a lesser degree than if you have nothing concrete to build upon.
Setting up an LLC (Limited Liability Corporation) is an essential part of operating a business. We recommend consulting an attorney to file the formation and create an operating agreement.
Once you submit your entity for formation, you’ll receive a federal tax ID. In most cases, you will file your company’s taxes as part of your personal tax return.
Financially, the entity will have its own bank accounts and accounting, which will help you manage expenses. Additionally, it will provide you with various potential deductions once it’s tax time.
Legally speaking, LLCs are their own entity and you operate as a manager of that entity. Furthermore, when you’re operating as an LLC, there are laws in place that shield you from personal liabilities.
Once your LLC has been created, you’ll enjoy the flexibility to hire employees and grow your business over time.
At the end of the day, every successful project started with someone taking a risk and believing in themselves.
Whether you’re a dog groomer, handyman, car detailer, tutor, hair stylist or makeup artist, you have the same chances of success as everyone else.
The difference is how you turn those chances into lifelong business opportunities.