So You Want to Start a Business Part 1

Today is a new day!
You see there are things that I know. I know for a fact that you need certain tools to run a business.
I have been doing this stuff for 15 years and no matter what, you have to do certain things.

So what does it take to be in business?

First and for most a name!

You see, if you are by yourself, no one helping you in the cost and operations you are a sole proprietor.
If you have a partner, you are a partnership which is sticky matter in my eyes, but two heads are better
than one.

Next after picking your name of you business you have to register it with your County Clerk (in Michigan) as Doing Business As also known as a DBA. The charge is usually a nominal fee and will stay active for years, five in Michigan. I just renewed mine the other day for the third time. Scott W Kelley Company.

Most people do not want to be associated with them selves and there is good reason. For example: Let’s say you may want to sell your company later down the road. Well if you were in my shoes, that would not be a good idea because I would be selling my name. I planned along time ago that I would never sell my name and I branded myself 15 years ago. This has worked in my favor and against me. But in the long run people remember me! Not some name and they always know who they want to talk to when they call me, pretty simple, but it works. The negative has been competing with the Big Name I am associated with collecting a commission when I sell their product. Differentiating my self from them has been the hardest because when they make a change it effects my business. I am not hiding behind some name where I don't want anyone to remember who I am or even associate me with some other name. I want to keep my identity, that’s why I did it. I also felt that it gives a better presence for the smaller guy going against the bigger names of my competition. I believe it is a key to stand out and be a little different to attract customers and clients.

This is one of the first steps to starting a business. Getting a DBA is like getting a domain name, really they are the same, except a domain name is not a DBA. The DBA is a registered name and is your AKA (your domain name) doing business as “your business name". As long as you disclose that you are legal. For instance, I could create a new business called VisualContact.com DBA Scott W Kelley Company. I just disclosed who owns the business. That way you don’t have to get a new DBA for every business you create. Kind of like a sub file.

I see this done in the opposite way to where you can brand your name with a domain name and have your corporation as the DBA. I see this practiced more often and when you look at the bottom of a web page, or in the disclaimer, about us you may see how the business structure is set up for some ideas in this crucial area.

So why all the hassle if you are a sole proprietor and using your SSN. Well tax reasons. Let’s say you have a job and your business. Both are connected to you through your SSN. It will allow you to grow when the time comes. You may need an employee some day, you may need a bank account, you may need an attorney, and you may need a CPA. Setting yourself up the right way can save you thousands of dollars in taxes.

So let’s recap
Choose a name for your business
Register your name with the county/state
Go open a checking account with your business name

You are now official and legal to conduct business to business.
You are now legal to purchase products, sell a service.
So what about the product? Some states have a sales tax.
Well guess what you need a license to sell product so you can get the states money for them. This is a big issue in my book and no one really talks about it to much. And I know it has to be a hot topic when the state finds out you been selling something, even on eBay they are going to want their money and you don't want to mess around with an entity like the government who can seize your accounts and everything just because they can. You don't want to have that happen. So be legal as heck. Pay your taxes and be proud that you can.

There is no better time to start a business than today. If you can find a problem that people have (many problems are out there) and find the solution or a solution you will be a service to people and should make money.

My next subject, how to get your name out there cheap to start building your business.

If you are interested in conversation, via phone, I am always open for a good chat.
Give me a call!
231-347-8456








Scott W Kelley Company
Owner/operator
5008 Rosada St
Petoskey, Mi 49722
231-347-8456
www.ScottwKelley.com/blog
info@ScottwKelley.com
http://twitter.com/scottwkelley