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Additional Details
I have a website, and have looked to the local papers, but they require 6 months upfront so around $500. ouch!!!... |
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Kimmie | Looking into starting my own business with a friend from home? |
hi there. My friend and I want to start our own invitation, birthday, birth annoucements, graduations..etc card business. We are both working full time and are doing this part time from our homes then if/when it gets big enough we want our own storefront. So how do we start? Whats the steps we need to take to get this? We already have a name for it..... PLEASE HELP!
Additional Details
Also Ive been looking into getting my bridal consultant certificate- do you think that would help with the business? |
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Frank
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The business needs to be registered with the state and you also need to apply for a state sales tax number and state unemployment number.
Go to the IRS website, www.irs.gov, for lots of useful information. Try links to Starting a Business and Forming a Partnership. Read each sublink. Be sure to apply for a federal tax identification number and federal unemployment number.
When they ask for a business structure, you are talking about a partnership. It is easier to get credit as a partnership because you and your friend will be liable, whereas a corporation is treated as an invidivual who would be liable instead of you and your friend. Also, corporations have to pay income tax like an individual whereas partnerships do not. Then regardless of the type, you and your friend will still have to pay taxes on the distributions you receive. That is why it is said corporations have "double taxation."
When they ask for a tax year, keep it simple and choose the calendar year, New Year's Day to New Year's Eve or you will regret it.
When it asks for selecting an accounting method, cash is easier, but large companies use the accrual method for a more accurate picture of how separate periods did financially. So hire a bookkeeper/accountant to do your accounting, payroll, and taxes and let him or her choose. If you will attempt the bookkeeping yourselves, buy Quickbooks and read the whole book. Then you might want to use the cash method if you don't understand the accruals used in the accrual method.
Take a starting-your-business course at your library or community college.
You can easily look up suppliers on the internet and completing their applications will be much easier once you get all those numbers like the federal tax ID number.
Be sure to invest in advertising in more than one media, such as in the yellow pages, local magazines, newspapers, and billboards (not all are on the freeway, some are on taxis, buses, and busstops). |
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Scouse
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Any training you can get will help. certificates on the wall in a good frame are more impressive than none or tatty ones held on with drawing pins. First things first get a partnership agreement hammered out. Friendship and a business relationship are very different. you will save money in the long run by seeing a solicitor now, believe me. They love people who do not make wills or draw up partnership agreements because they make more money out of them if they do not |
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Kevin G
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Start with a really good printer. A high-end Color Laser would be best. If there's money to be spent, then there is where it is to be spent!
Good luck and Advertise the he!! out out it. |
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Viva La Eire!
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depends on where you live, there are different procedures for different states/countries!
seen as there are two of you, it would have to be a partnership, It would be easier if there was only 1 person in the business ( sole trader), at least it is in Ireland, there is a minimal of formality and paperwork, especially of the business is going to be named after the owner!
partnerships are a little more awkward, and, again, it depends on where you live!!!
good luck|! |
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oldtimekid
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First, start with the here and now. I've been through exactly what you're going for, but I went gung-ho and tried my home business as my soul source of income.... but I found out a few months after I started that I couldn't afford the advertising.
I would definitely suggest doing your advertising (newspapers, signs, word of mouth, bulletin boards at work and elsewhere, etc, etc) before doing anything different with either of your jobs. If/when business gets too much for both of you to do with full-time jobs, then look at reducing hours and/or quitting.
Once you get enough business that you want a storefront, you could diversify and expand into stamps, paper, massive printers (for the big jobs), and you could sell all sorts of things related to the invitations/announcements.
I think that being a certified wedding planner would definitely be a boost for the business... after all, having more things for sale will bring in more customers. One thing to make sure of BEFORE you start all this is to get a contract written up between you and your friend... leave nothing up to oral agreements. I've seen too many episodes of People's Court to know it's a bad idea to have only oral agreements.
The contract doesn't need to be insulting to either party... just have the basics of how the business will work and what will happen if either of you wants to be "bought out" and not do the business anymore. It's just a safety net for the both of you, just in case you make it big and either of you want to go into some other business. Good luck! |
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Keezee
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Honestly, my advice would be to jump right in! Don't wait until your ducks get in a row (they never will) -- It will never be the perfect time to do anything new so just go for it! It sounds like you have a product ready to roll bearing supplies so just look up how to get a business license in your state and enter into a partnership with your friend. If you were on your own and just starting up I'd recommend a sole proprietorship, no paperwork involved you simple make a decision to start "doing business as COMPANY X."
Since you’re not going to incorporate at this point, just start doing something. Make a mess and clean it up later, you'll be glad you did if it works out! |
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bryce m
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yes, you want to be well diversified with this type of business, most of your business will be from repeat business and that is a great way to get personal and friendly with your customers!! when you get to that point, you would need to create a business presentation, and present it to a business loan officer at a bank!!
good luck and congratulations on your business! |
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needsomeadvice2007
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Most of the supplies you need can be found at Best Buy or eevn Walmart.
Computer software, printer, types of paper.
Just be sure about the friend part.
Love of money is the root of all evil |
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Greg R
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Starting a business requires a lot of work and dedication. You cannot start a business this week and expect to be earning a good profit next week.
Employees tend to have a "job" mindset whereby they worked this week, so they expect to see results this week (i.e. a paycheck this week).
In business, you don't see results like that. Take, for instance, starting a new restaurant. You'll first have to choose a location. The most successful restaurants have their own location, with their own parking lots.
If you wanted to open a restaurant like that, you'd spend a couple of months looking for the right location. Then you'd spend thousands of dollars for an architect to help design the plans with you. Then you'd spend thousands of dollars getting your plans approved by the local authorities.
And then, after all that, you'd be approved to spend hundreds of thousands of dollars on hiring a firm to actually build your building. And after that, you'd spend tens of thousands of dollars to install the interior decorations.
And then you'd spend thousands of dollars hiring employees and training them, as well as having them prepare for the grand opening.
And then, after over a year and spending over a half million dollars, you'd be ready to open the doors and start earning your first dollar.
I say this to illustrate my point: businesses take time and money up front to develop. In the longer period of time, this time and money invested up front will pay off.
But businesses take time to develop!
It is not like being an employee where you get instant results, meaning work this week, get paid this week.
Business is not like that.
I hope this helps.
I wish you much business success. |
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coventrycourtcloset
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I have my own home based business and have found the following website very helpful. |
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