Online Incorporation MaxBlog

One big question to address after deciding to become an entrepreneur is whether you want to start your own business altogether or purchase a franchise license from a corporate entity like McDonalds or Ace Hardware.

Each has its own pros and cons but to find out which route is more suitable, you must first ask yourself why you want to be in business in the first place.

You Want to Be Your Own Boss

If your primary motivation for wanting to venture into owning a business is to be your own boss, franchising is definitely not for you. Corporations often have strong conditions and dictate what is to be done and how. If you incorporate a business on your own, you will have complete control of these things.

You Have an Idea and Want to Expand On It

If you have an original idea for a business then a franchise is definitely NOT for you. Ideas like this require you to be in complete control of the situation. Franchises come with strings attached so the opportunities to experiment on your own are minimal.

You Want to Make Lots of $$$

If your ambition is lots of greenbacks, then franchising may be the way to go. Not that franchises make more money than stand-alone businesses, but they do have a higher success rate. But you will have to pay fees to the franchisor for your success…franchising is also a good option if you do not have much hands-on business experience.

You Already Have Money but you’re looking for something to keep you Busy

Franchises are ideal for folks in this category…you have money and are looking for something to pass time. It’s even more ideal if you lack hands-on business experience. The franchisor will assist you in many things – hiring practices, site selection, inventory and more.

Whatever course you decide, you will need to incorporate your business. Incorporate online easily in 10 minutes or less at MaxFilings.com. No matter if you’re in Alaska, Florida or the District of Columbia, incorporation experts at MaxFilings can help you get your business off the ground and running.

Starting a business in the current economic climate may defy logic. Why would I be crazy enough to give up my secure job to take the entrepreneurial plunge right now?

Experts will tell you that a recession is one of the best times to start a business – several well-known successful companies today got their start during major economic turmoil in the U.S.  These companies succeeded because they found a niche market that wasn’t being filled by anyone else. Identifying a market need is vital for any business startup, regardless of the economic climate.

But risks of failure are greater in a recession so you need to keep expenses as low as possible. Businesses that start and survive a recession though are in a unique position to profit and benefit from the inevitable economic upturn. But if you wait to form a corporation until after the recession, you will be that much more behind.

Keep startup costs low by:

1.    Keeping you day job – If you’re fortunate enough to still be employed, start your business during your free time. You will still have steady income from your day job which allows you to focus on making your business profitable with less risk.

2.    Not buying, leasing or renting office space – Launch your business from a simple home office to save on this expense. Many ventures can be easily managed from the home, eliminating the need to spend money on office space.

3.    Not hiring employees – If you need help from others, consider hiring them as contractors rather than  employees.

4.    Advertising by word-of-mouth – There are many ways to advertise your products and services without spending money. If you can’t sell it yourself, no one can.

There are many recession proof industries you can launch a successful business in. These include:

•    Food
•    Healthcare (including psychology and substance abuse)
•    Computers and IT – people tend to fix broken machines rather than buying new ones during a recession
•    Security
•    Education services (many people go back to school in hard economic times)
•    International business – the economy in other countries may be better

One challenge to starting a business is finding your niche – something that distinguishes you from other related things currently available. One of the best ways to find your niche is to create a business that offers something you needed but couldn’t find.

Read this article from Entrepreneur.com for more insights. And when you’re ready to launch your business, turn to the online incorporation experts at MaxFIlings.com to form a corporation online easily in just minutes.

Are you ready to start your own business?

A lot of people feel they are, but they haven’t considered what running their own business will really entail.  They are interested in setting their own work hours, not having a boss and having unlimited income potential.  These items are the rose-colored glasses of owning your own business.

I’m going to share with you the five reality check questions I ask my fledgling entrepreneur clients.

Moolah

The first question is about money.  Yes, it is kind of true that you need to have money to make money, but you don’t need millions.  Do you have six months or more of living expenses in a liquid account?  Or do you not need your wages to contribute to the household income?

If you answered, “Yes”, congratulations.  If you answered no, how long would it take for you to accumulate that reserve?

One thing to consider is your current lifestyle.  Are there expenses you could eliminate or scale back on which would allow you to save additional money, plus, if you’ve eliminated the expense, it means you’ll need less to live on in the future.

Tick Tock

The second question is about time.  Do you have a minimum of 30 uninterrupted hours per week to devote to your business?  By uninterrupted, I mean time that you aren’t watching a child, doing laundry, running errands or telecommuting to a job.

A lot of people quickly answer yes to this question without really thinking about it, so I recommend that you take a calendar and map out an average week.  Be sure to put in everyday things you might take for granted, such as picking up the kids from school, doing household chores and exercising.

These items take up physical space instead of mental space because they’re repetitious and so they give you the perception that you have more time than you actually do.  Now, how many hours of uninterrupted time do you have?

When does that time fall?  If it’s between 9 pm and 1 am, you could start an Internet business, but if you’re offering a service to people or companies, they will want to do business during standard business hours.

If you find that you have less 30 hours per week, it might not be the right time for you to start a business.  A new venture takes a lot of upfront time and energy and it will take longer to build a solid client base if you don’t have the time to devote to it.

On the flipside of that, if you’re transitioning out of a full time job or know that you will soon have more than 30 hours, set yourself up for success by expecting your business to get started and grow at much slower than the average pace.

La La Land

The third question often surprises people.  Does your personal life run relatively smoothly?  You are the center of your business.  If you are also the center of emotional mayhem in your personal life, it’s going to show in your ability to start and run your business.  If you’re in the middle of a nasty divorce, adopting your first child, moving to another country or have some other intensely emotional taxing event happening in your life, adding the stress of starting a new business could send you straight to the funny farm, and if not there, to business failure.

Get your personal affairs in order then open your business.  I coach many of my clients for six months to a year on getting their personal and financial life cleaned up before they get down to opening their business.

One-Ring Circus

The fourth question is:  Do you work well by yourself?  Not everyone is cut out for working from home alone.  If you currently work in an office, ask your boss if you can work from home for a week.  See if you like working without outside stimulation or the environment of an office.  A day isn’t enough.  You need to be home for a solid week to see how it feels to be isolated and solely responsible for each minute of your day.

If you find this isn’t for you, you can still open a business with a partner or even several or you can rent office space in an executive suite.

A lot of people love working by themselves from home but they determine that they aren’t as productive when others aren’t around or someone else is setting the deadline.  Your level of self-management will impact this element.

Juggling

The final question is do you manage multiple projects and tasks simultaneously without getting overwhelmed?  If you answered yes, that’s great, because that’s exactly what you’re going to need
to do daily.  You are the provider of the service, the customer service department, the accounting department, the hr department, the marketing department, the administrative department, the
technologist-EVERYTHING (unless you have a good amount of startup capital and can hire help right away).

If you answered no to this question, you might be a tradesman or woman who desires autonomy in your work, but who really isn’t an entrepreneur.  The distinction is that a tradesman or woman wants to do their specialty, such as massage, process improvement, executive coaching, but they don’t want to punch a clock or beresponsible for all the ancillary duties of owing a business.

If you fall into this category, I recommend one of two things. Buy Michael Gerber’s book “The E-Myth Revisited” and see if you want to stretch into the areas necessary to run a successful business or find a company or business that has put the structure in place and pays you as an independent contractor.
This arrangement allows you to control when and how much you work without managing the day-to-day.

If you answered yes to all of the questions, then you are ready to go!

(c) 2009 Leah Grant Enterprises LLC.

New Business Mentor Leah Grant publishes Startup Success, a weekly enewsletter.  If you’re thinking about starting a new business or are in the early phases of entrepreneurship, get your FREE New Business Startup Kit including the Secrets of Successful Business Owners audio at http://www.leahgrant.com

Are you a new entrepreneur who anticipates forming a corporation?

Do you know what different terms mean when thinking about incorporating a business?

A Glossary of Business Terms found in the online incorporation knowledge center at MaxFilings.com can help you easily learn these terms – or simply a resource to reference when you hear a business term you’re not familiar with.

For example, what does “aggregate par value” mean?

Well, a quick look in the glossary tells us that it is “the number of authorized shares multiplied by their par value is a corporation’s aggregate par value.”

This raises another question – what does “par value” mean?

Again, another quick look in the business terms glossary tells us that it is “the assigned value of a share of a corporation’s stock.”

The glossary contains many different terms organized alphabetically. Know what you’re looking for already? Simply click on the first letter in the term.

Quickly reviewing the glossary means you will know the lingo of forming a corporation so when you do, you are aware of all of its parts.

An interesting post in Entrepreneur’s Daily Dose blog poses this question.

There has been a growing drumbeat among small business owners and entrepreneurs irked at many of his administration’s decisions…whether they perceive him as anti-entrepreneurial is anyone’s guess.

But the president is raising eyebrows among the left, who perceive the U.S. Small Business Administration as being too pro big business. Critics on the right are alarmed at the various stimulus spending measures – and about everyone is upset at the banking and auto industry bailouts.

Centrists even are critical that not enough stimulus spending is being channeled to small and medium-size business owners.

Some more conservative pundits declare that Obama has launched an all out “war on business” according to columnist Carol Platt Liebau.

While we are not political here at Incorporation-e we do want to stay on top of all policies that affect small businesses.

There is a lot of uncertainty about the future of our economy but forming a corporation and becoming an entrepreneur is one way to start over if you’ve been affected by the recession, which we all have in one way or another.