10 Start-up Tips : How To Get Your Business Up And Running

(Part I of a II part series)

Are you hesitating to start your own tax practice simply because you’re not sure where to begin?  We know how intimidating starting a new business can be. You may feel like you’re forever sitting on the shore of your real life, too timid to leave your beach towel to test the waters.  Although it can seem daunting to put out your "shingle" for people to do business with you, there are steps you can take to make it easier to do. Often a little knowledge can empower you with the confidence to move forward and get started.  Here are 5 of 10 start-up tips to help you do just that.  Come on in – the water’s fine. 

1.     Name Your Business
Some suggest that when starting a diet, you should fast; seeing pounds come off quickly inspires dieters to continue.  Naming your business can be like that dieter’s fast; creating the name of your business could be just the inspiration you need to move forward (and it’s less painful than food deprivation).  Will your name be part of the business name?  Will you include a motto or slogan? 

Recognize that naming your business is just the beginning of creating a brand for yourself.  Before you brainstorm for a business name, ask yourself the following questions:  

• What are your competitors calling themselves, and how can you differentiate your services and stand out?  (see #3) 

• Who are your potential clients and how do you want them to view you?

• Will you limit your ability to expand by localizing your name?

• Will your name be memorable and easy to refer?

• Will your business name excite and inspire you?

Be creative with your company name so it's catchy, but not too creative so that it remains professional. Whichever name you choose make sure its easy for you to say, and for your customers to remember.

2.     Choose a Business Structure
There are many business structures to choose from when starting your own business.  The entity you choose depends on your objectives.  If you’re partnering with a friend or family member, you’re looking at different structures than those going into business by themselves.  There are many factors to consider when deciding which structure is best for you.  To learn more, read our article on “The Pros and Cons of Different Business Entities.”

3. Get to Know Your Competition
“Knowledge is power.”  This is the perfect example of how a little knowledge can catapult you to the front of the race.  Find out what your competitors are calling themselves, what services they offer, who they’re marketing to.  You can only stand out from the competition when you know who your competitor is and what they’re about. Perhaps you see a twist in how you can approach those in your community that others haven't seen yet. Knowing who and what you are going up against and how you can better tailor what you offer to those in the same target market gives you the edge in getting that customer.

4. Be Legally-Minded
This is somewhat related to number 2.  It’s important to start your business off on the right foot.  File the proper papers and pay the required fees.  It’s also not a bad idea to consult with a lawyer to ensure you’re headed in not only right direction, but a law-abiding one.  Also, as you begin working with clients, document your correspondence and save your files.

5.  Tread Lightly (financially, that is)
Perhaps you’ve been saving money to use when you start your business.  Perhaps you’re on a shoe-string budget and don’t have much wiggle room.  Regardless of how fat your pocketbook is, you should be frugal, especially at the birth of your startup.  Prioritize your spending, and avoid buying things you don’t need. 

Return next week when we cover the 5 final startup tips:

6.  Pick and Prepare a Business Location (even if it’s just in your basement)

7.  Create a Business Plan

8.  Begin Marketing, NOW!

9.  Hire Well, Fire Quickly

10.  Hope for the Best, Prepare for the Worst

Don’t overwhelm yourself.  Take your time and do it right.  If you get anxious and move too quickly, you might miss an important and crucial step.  It's all about timing and being ready when the opportunity arises. You need to continuously be improving and sharpening your professional saw and act when the time is right. Remember, procrastinating your future, procrastinates your success. 

Get yourself ready now so when your opportunity knocks, you can open that door with confidence. Learn how to be better prepared for your tax preparation business.