1011+Running+a+Business

=Notes from Mrs. Trout's Presentation on Running a Small Business on 4/19/11=

It's important that your business is something you enjoy!

 * In order to effectively run a businesss, you need to start by developing a business plan.
 * How much will it cost to start your business?
 * How much will it cost to run your business?
 * Make sure you include ALL costs. Some of the costs are listed below.


 * When starting your business, you can either buy an existing business or start from scratch
 * You will need equipment for your business
 * You can buy new equipment
 * You can buy used equipment
 * You can lease your equipment


 * You will need BOTH a lawyer and an accountant for your business
 * If you are creating a corperation, the fee to get a name is about $125
 * Incorperating (becoming a corperation) protects your personal wealth and assets from lawsuits
 * Incorperating is suggested if you
 * Go into people's homes
 * Have a business that involves dealing with children
 * Have a lot of personal wealth
 * Are starting a business where you are concerned about being sued
 * Your lawyer will cost you about $500-$1000 when you start your business (higher for a corperation, less if not)
 * Your accountant will help you set up your business, do your taxes, and may do your payroll.
 * If you hire a payroll company to do your payroll, they will charge you about $100-$200 per month (higher if you have lots of employees)
 * Your accountant will cost you about $1000-$1500 for the year. (higher if they do your payroll, less if they don't)


 * When looking for a location to lease property for your business, make sure you locate your business where the most people can access it.
 * Retail businesses should be in high-traffic areas so that they are easy to get to.
 * Wholesale businesses can be in more remote locations because they don't rely as much on new customers
 * When you lease your property you will need to pay the first month's rent, the last month's rent, and a security deposit
 * Make sure you figure in expenses like Air Conditioning, Snow Removal, Trash Pickup, etc. in your business plan


 * The local Chamber of Commerce is a great place to get information on starting your business
 * The job of the chamber is to help businesses so that the community grows
 * You should consider joining the Chamber of Commerce - the cost is about $150 per year
 * This allows you to network and increase your exposure
 * Gets you discounts


 * Ask other businesses for advice on what lawyer, accountant, insurance company to use
 * Choose businesspeople that you respect
 * Choose businesses that are successful

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 * You must have 2 types of insurance!
 * Liability - The minimum coverage is $1,000,000 in liability coverage. This basically means that your insurance company will pay the first $1,000,000 if you are sued.
 * This will cost you about $200 per month.
 * Workman's Compensation Insurance - Pays employees if they get hurt on the job
 * This will cost you about $200 per employee
 * When choosing an insurance company - ALWAYS GO LOCAL! Going with a big national company costs more because you pay for their advertising.
 * Credit Cards
 * If you choose to accept credit cards, there are fees you will need to pay
 * The machine will cost about $350
 * The paper for the machine will cost about $48 (lasts about 2 years)
 * The credit card company will charge you about $19 per month
 * For each credit card transaction, you will pay $0.19 plus about 1.44% of the sale
 * If you do not accept credit cards you do not have the above fees, but you also will likely lose some business

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 * Signage
 * You will need a sign for your business
 * Signs can be anywhere from $500 to $3500 depending on the sign you buy
 * Make sure you figure in the cost to install the sign, as well as the cost to buy the sign
 * Permits
 * Depending on your location and business type, you may need to get permits
 * Check with the township where your business is located to see what permits you need
 * Other Monthly Expenses
 * Don't forget about cleaning supplies (brooms, spray cleaners, etc.), toilet paper, office supplies, stamps, etc.
 * If you have a vehicle, you will need to pay for gas, insurance, etc. as well as yearly fees like registration, inspection, etc.
 * Telephone, internet, WiFi, cable, satellite music, etc.
 * Basic Telephone service - about $51 per month -does not include long distance calls