Entrepreneurship is a cornerstone of the American dream—be your own boss, make your own rules, and run things the way you see fit. The ability to survive the crucible of the market and succeed by our standards and hard work is the basis of business ownership.
However, the market can be an unforgiving force of nature at times. There are many traps and pitfalls on the road to success, and any minor mistakes early can catch up to you in a big way. Roughly half of all businesses close within the first year or two, often due to mismanagement of finances or other less-than-stellar decisions on the part of the owner.
To avoid making mistakes that could end up tanking your new venture, you need to know what those mistakes are, and how best to go about getting your company off the ground.
Start With a Foolproof Plan
The most important part of starting a new enterprise is to have a rock-solid business plan. This document is your business’s roadmap, combining your ideas with relevant market information, demographic research, projected costs and profits, and everything in between.
Not only is this the pitch you show to banks and investors, but it’s also the guidebook you follow to ensure your success.
Know Your Target Demographic
A big part of good business is knowing your customer. Who is buying your product? What do your customers have in common? The answers to these and other questions can spell the difference between meeting and missing goals.
You wouldn’t open an upscale restaurant in a low-income neighborhood, and you wouldn’t open a snowboarding shop in the middle of the Mojave. Know your product and who you’re selling it to, and make it as easy as possible for them to get from you.
Don’t Neglect Your Marketing
It’s not enough to get your business running and unlock the doors. Your customers need a reason to give you a shot, and they have to know that you exist even before that.
Proper marketing is designed to reach your target audience and inform them of you and your product, which creates a need that you can fulfill for your customers.
Have a Sincere Passion
If you start a business just for the sake of owning a business, there’s a good chance that you’re going to struggle. Entrepreneurship takes a lot of hard work. You lose sleep, you work 60 hours a week, and bring your work home with you.
The physical and psychological strain is too much for many people, causing rifts in relationships and many premature closures. If you don’t have a genuine passion for what you do, you may break under pressure.
Don’t be Afraid to Ask for Help
No man is an island, so they say. You might be an expert chef with a lifetime of experience and a passion for your work, but more goes into a successful restaurant than just the kitchen. Accounting, management, employee training, and other aspects all combine to create the whole of the business.
It’s okay not to know certain things, as there are always resources available to you, such as hired management and outsourced accountants. What’s most important is recognizing the aspects of your business that you don’t excel at and finding ways to fill those gaps.
Accsol, Inc. is a Laredo-based accounting firm that helps small businesses all over Southern Texas get off the ground and stay financially healthy. For a free consultation with our team, contact us today and find out how we can help you turn your idea into a business.
No matter if you’re getting your business off the ground or you’re already well established, accounting is the backbone of your company’s financial health. More than sales and profit margins, the ability to accurately record and track your cash flow and expenses goes much farther toward reaching your goals than just making lots of money.
Your accounting processes are vital to your business’s health, but taking care of them yourself can lead to a variety of problems. Not only does it eat away at your already-precious time, but it can also leave you vulnerable to the small errors and oversights that can end up costing you more in the long run.
For many small and growing businesses, though, it’s difficult to justify the cost of a full-time accountant—enter the services of independent accountants and CPAs that you can outsource your financial needs to at a fraction of the cost. But when is the right time to make this transition?
An ideal time to find an independent accountant to handle your bookkeeping and payroll processes is the beginning of the fiscal year. After your taxes have been filed and are behind you, you have the whole year ahead of you to clean up your finances and reach new goals. Hiring a bookkeeper after you file your taxes creates the perfect environment to make meaningful changes.
Growing pains aren’t just about adolescence. Growth, while one of the major milestones a business strives for, brings with it unforeseen complications and pitfalls that can significantly impact your company’s health.
An experienced accountant can identify the aspects of your company that are affected the most by growth, giving you the advantage of foresight and planning. Furthermore, this gives you the time you need to focus your efforts and attention on the business itself.
Perhaps you already had a full-time bookkeeper in-house, but they’re moving on to their next adventure. While they and their efforts are sure to be missed, this is the perfect opportunity to explore other options.
An outsourced accountant may not be on-site day-to-day, but they perform many of the same functions without the salary and payroll costs of a full-time employee.
Accsol, Inc. is a Laredo based accounting firm that offers experienced bookkeeping and payroll services to businesses all over south Texas. Call us today to schedule a free consultation with our team.
A big part of business formation, business planning, and even tax planning is the entity you select for your company. Your business structure has a wide range of effects on the way you do business and how you are taxed.
But when it comes to keeping your tax burden low, it’s important to settle on the right structure for your business to ensure that your tax planning is locked in and you don’t get any unwanted surprises when the tax man comes around.
Let’s look at the most common structures and how they impact a company’s tax liabilities.
Small businesses run solely by one or two owners are, essentially, the simplest form of business. Legally speaking, there is no distinction between the company and the owner(s), as you are the business.
Running as a sole proprietor or partnership makes taxes a more straightforward matter as pass-through entities, which means that the business does not pay its taxes like a corporation. Rather, tax liabilities are passed through to the owner and paid on personal tax returns.
Limited Liability Companies and S-corporations are two of the most common entity selections in the country. They not only act as pass-through entities but offer some liability protections to the owners that shelter them from the debts of the business.
These structures are ideal for small businesses with minimal employees. As the owner, you are protected from reasonable debts incurred by your company and are still afforded the benefit of paying the taxes on your business’s profits on your tax return, avoiding the double-taxation that larger corporations are subject to.
C-corporations are generally larger companies and are legally considered their own entity, which means they pay their corporate taxes and can even be sued. They also benefit from the ability to be openly traded companies, allowing them to raise revenue through the selling of stocks.
Running your business as a C-corporation comes at the cost of what some refer to as double-taxation. The corporation is taxed before distributions are made to board members and shareholders, who are then taxed again on their returns.
For more information about business structures and how your choice can impact your tax liabilities, contact Accsol, Inc. in Laredo. Our experience and expertise allow us to provide proper guidance for the formation of your business. Call today to schedule a free consultation!
We offer a broad range of services for business owners, executives,
and independent professionals. We are affordable, experienced, and friendly.
Please call us today at 956-727-5121. We'll be happy to offer you a free initial consultation. Thanks for visiting!