Starting Your Own Business: What I Wish I Had Known when I Started

Owning your own business is a challenging adventure. When I went into business for myself, it was out of necessity, so I really had no choice, but to succeed. This put on a lot of pressure and resulted in many mistakes, that I took as lessons. However, if I had been able to plan accordingly and take my time, success would have likely came sooner and more smoothly. Here I will share with you how you can turn your talents into a home-based business so that you can hopefully avoid some of the mistakes I made during my first year.

Your Taxes

During my first year as a business owner, I did not think too much about taxes. Throughout my entire working life, I had been a W2 employee and taxes had been deducted for me. However, as a business owner, this is not the case. You will have to set aside your taxes and pay them out of your profits. As my first year came to an end, I found myself owing a few thousand dollars, but I had not put enough back to cover it, so I was scrambling to satisfy the IRS. I was able to pay on time, but it was stressful and other things sort of fell to the wayside as I worked to ensure the IRS got their money. So, starting my second year, I started putting back 15 percent of my income for taxes. Your percentage may differ, so talk to a tax accountant to get a more accurate figure for you. I am single and have no dependents, so 15 percent is reasonable for me. Now, at the end of my second year, I was able to easily pay my taxes and had a little left over that I shifted into my savings account. I kept this up throughout the years and now I do not stress when tax time rolls around.

Your Plan

Before you dive into entrepreneurship, it is critical to have a solid business plan. As I said, I started a home-based business out of necessity (health issues prevented me from working outside of my home), but if you are not in a dire position, take the time to plan. Think about the hours per week it will take, any start-up money, realistic profit goals, any inventory you will need and how much it will cost, whether you will need a loan to get started, etc. Get all of this planned out and organized ahead of time. I also often tell friends to start slowly. For example, if you are looking to become a freelance writer, do not immediately quit your day job as you will not make a full-time income right away. I am a freelance writer and it took me a solid year to start making a comfortable income. Start slow and build.

Know Your Industry

This is something else I wish I would have done. When I started freelance writing, I knew that I loved to write and that I had writing skill, and that was about it. I knew nothing about the publishing industry itself. Thankfully, I was able to quickly network and met several very nice and generous people who freely offered their valuable advice, tips and information about succeeding in this industry. So, take the time to research the industry you wish to start a business in. Get to know the trends, hot products, key players, etc. This information can make or break you.

Resources

Personal Experience