Posted on 06/02/2010 9:46:07 AM PDT by Freedoms Worth It 2
This is Freedom's Worth It - class of 98.
I am retiring and starting a business.
It is in the education field - but it is for profit.
All Advice and counsel are welcome.
Thanks in advance.
Need a WEbsite. Have a facebook page.
;-)
Seriously, though......best of luck.
No advise...but congrats and good luck!!!!!
Don’t count your money until it’s in your hand.
Don’t quit your day job.
Oh, wait.
Good luck!
Good Luck.
Cash is king
Educating what?
You mentenioned educational, but that could cover quite a bit, kind of vague.
Need to know a little more. I am a small business owner. Many different considerations depending on what kind of business. Especially if it’s cash. Also whether or not you want to incorporate or not.
Keep good records. Seems small businesses are getting audited at an alarming rate. We have a LLC and keep every receipt and report.
Hire an attorney to protect your personal assets from any lawsuits. Don’t rely on LegalZoom.com.
Hire a CPA experienced in small business. Don’t rely on TurboTax.com
Put your website on a Linux server. Don’t put it on a Windows server.
Find a good LAMP developer to build your website application. LAMP projects are cheap to develop and maintain. (LAMP = Linux operating system, Apache web server, MySQL database, and PHP programming language)
Mathnasium franchise?
Good luck. Hard work ahead of you.
Get plenty of operating capital and market, market, market!
And get the copyright for the source code to your web site application.
And get periodic backups of the code and database.
And don’t put your web site on Windows.
Did I mention not putting anything on Windows?
One more thing ... Don’t put your web site on Windows.
I use a financial advisor with experience in recovering failing small businesses and with IRS audits. He screens all financials before they go to the CPA. He also advises on owner salaries, shareholder distributions, loans, etc.; most CPAs don’t have that experience. He helps us avoid running into audit triggers.
To be really honest, I can also be honest with my financial advisor with information that I cannot share with the CPA or with information that the CPA could not advise on.
Where you been the past almost 3 years?
You can't eat accounts receivable.
/johnny
Know your credit. Check it periodically, maybe quarterly. Use a credit monitoring service. Learn what affects your credit negatively and positively.
Rules to live by:
1. Don’t fund your business with credit cards in any way. if you have to pay a major bill with a redit card, start worrying and have a plan to get out of it asap.
2. Try not to do business with family or friends. There’s always something that comes back to hurt a relationship.
3. Use a business plan. If you are deviating from the plan, determine why and determine if it’s acceptable or if you have to make a change. And do these things quickly.
4. Credit is tight right now. If you are looking for an SBA loan, make sure your business plan is buttoned up tightly. Get a financial advisor to look it over.
5. Ask yourself, do I trust my CPA? Do I trust everyone who’s handling my money? Make sure you’re double-checking orders, inventory, sales figures, cash registers - whereever money is stored or is flowing.
6. Don’t become chummy with your employees. Use mutual respect.
7. Don’t run your business as a charity. There will always be someone asking for a discount or a favor. When you’re a millionaire, then you can be a philanthropist.
I could go on.
One of the best pieces of advice I was given at startup was this:
People get themselves in trouble in business by short-cutting and cheating the system and doing things under the table.
Some say ‘cash is king’. But, you really have to know how to manage that cash income to avoid IRS audits. The IRS knows small businesses are taking cash and not reporting it. Use a financial advisor experienced with the IRS to help you manage it.
That’s excellent advice. The main point I wanted to convey was not rely on TurboTax.
bookmark for later long reply.
Rule #1. Don’t go in personal debt.
Rule #2. Incorporate.
More later.
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