How to Grow Your Business
When you decide to launch a small business, it will require a lot of hard work. But the more hard work you put in to it, the more tremendously rewarding your business experience will turn out to be. Having planned out a complete business endeavor, the next step involves meeting all the legal requirements as outlined by your state. These involve paying filing fees and acquiring articles for your incorporation.
Whether to form a corporation, sole proprietorship, partnership or a limited liability company (LLC) can be best discussed with an attorney. But whatever you choose to do, once you start on a business the internal revenue service (IRS) will provide you with an Employer Identification Number (EIN).
Obtain your Tax ID / EIN
Employer Identification Number (EIN) is also known as Federal Employer Identification Number (FEIN), Taxpayer Identification Number (TIN) or simply a Tax ID. It can be obtained either online or by personally contacting IRS. When you personally contact the IRS, one of their agents will help you require your Tax ID or you can get a Tax ID online. After you have acquired your nine digit tax identification number, you will be allowed to carry on with your business. This is the number you have to use henceforth in the place of your social security number to represent that you own a separate business account.
Capitalize your Business
After having your business registered with the IRS and obtaining your EIN, the next step you need to take it to capitalize your business. You are now eligible to take loans and under your EIN and business name, open a bank account on your business’s behalf. A tax accountant might even help you transfer your personal assets to your business should you want to do that. The possessions you wish to move usually involve office furniture and other supplies and your car to your business.
Formally Open Your Business
After having acquired a tax ID, location established, employees hired, office furniture and setup created, money funding your business, and marketing strategy launched, you have half your business dream turned to reality. Open your business and conduct all of the business transactions through the specific Employer Identification Number (EIN) provided to you by the IRS. File the federal tax, stack of state, regular administrative forms with your business tax ID so that you have all your business related information under one ID.
A useful general tip for all novice business starters is that even though you will find a lot of banks offering you to open business accounts on your social security number, never sign up for any such thing. Once you get your business account registered with IRS and acquire your EIN, your business becomes a lot more formal and saves you from a lot of complication that you might come across at the time of filing your taxes should your personal and business revenues mix with each other. This can also hold you personally responsible for some debts in the event of bankruptcy. Read More
Why Most New Businesses Fail – Dos and Don’ts
There are always certain important factors that set a leading company apart from a failing one. Considering the portfolio of a number of leading companies as well of those that failed in the first year of their establishment, we have compiled for you certain dos and don’ts should you intend to start a business of your own.
When you decide to start your own business, the first and usually the most important factor you have to ponder on is whether you wish it to be a sole proprietorship, a partnership, a corporation or an LLC. Let’s suppose you decided an LLC, so now you are required to register with the IRS for an online LLC Tax ID Application . Now coming back to what steps will take your infant entrepreneurship to top – here are some vital ‘Dos’ that can take your business to the next level:
Get a step ahead of laurels and innovate
That’s right! Innovation and providing compelling services, content and product is never going to fail you. Alongside that, you have to use the technology to your advantage and market yourself well.
Seek outside advice
You can never have complete knowledge about business tactics, sales and productivity, no matter how innovative an idea you bring into the market therefore be open to outside advice.
Set up a plan and keep a constant measure of your progress
Having a concrete medium-term plan for your business and following its success through various business performance metrics is integral to propelling your business into the future.
Hire the best of all
Hire only the best candidates for key positions and roles, and offer them better remuneration than your competitors. This will enhance their productivity as well and flourish a positive workplace culture.
Keep relations with your key suppliers strong
Build strong relationships with your key suppliers so that both of you can prosper in the longer run.
To avoid financial difficulty, follow the five don’ts that we have compiled considering the portfolio of unsuccessful firms:
Diversify your customer base
Do not rely on just a couple of customers. You can still diversify your consumer base while being loyal to your repeat clientele. Just put a little extra effort in your CSR department
Prefer effective financial management
Have right knowledge and right tools for effective financial management. Untoward circumstances can keep happening but if you have managed your finances effectively, you are likely not to lose it all.
Prioritize contingency planning
Your business should plan beforehand when it comes to unforeseen events. Also, always have a plan- B ready at all times.
Focus on what is happening in your market
Consumer preferences and production techniques keep evolving so do not ignore prevalent market trends.
Get help as soon as possible without waiting for too long
Successful turnaround is possible if you seek help in the initial stages of a difficult phase, so seek help as soon as you can. Read More