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You Know What Your Business is Going to Be, Now What? Steps to Open a Business

Your Fico Score is one of the more important steps to Opening A Small Business. While it may not stop you from actually starting your business, a low Fico Score will certainly give you a headache after you have run your head into many brick walls applying for Startup Financing, or any type of business financing. Traditional lenders will feel that you may be too high of a risk if you do not have a good Fico Score and may not lend you any money when you are just starting out or have a chance at expanding your business. Remember that most traditional lenders are going to look at your personal credit, especially if you are a small business. So having a good Fico Score is going to be one of the key steps to Opening A Small Business.

The Business Structure should be decided early on in business because you will want to make sure that you are covered from both a liability standpoint, as well as a tax standpoint. Don’t forget to visit your local Secretary Of State website for further information on the requirements for operating a business in your state. You may also need to obtain a business license, depending on the industry that you are going into. Make sure you speak with your attorney and/or accountant to decide which Business Structure is right for you.

If you plan to apply for Equipment Financing or any other type of Small Business Financing, it is a good idea to open a business bank account. Sole Proprietors are generally OK with operating their business from a personal bank account when it comes to financing. If you are not a sole proprietor, the financial institution will most likely want to see that you have a business bank account. This not only helps validate your business but the lenders will also want to see what your average bank balance is and if you have any over-drafts on the business account. If you are a startup business, you should try to open your business bank account with at least $1,000. The bank will also need to see proof of ownership of the business with either your filing information from when you created your business structure/entity, or your tax ID number, also known as EIN (Employer Identification Number). You should contact your local IRS Field Office to apply for your tax ID number if you are a sole proprietor and have not already done so.

The above steps are clearly the level above the foundation of Opening A Small Business. You will already know the type of business that you are going to run and will have researched it heavily before taking the above steps to Opening A Small Business.

6 Reasons to Own an Internet Business

If you do a search online for work at home you will see hundreds of thousands of sites promoting one home based business or another. Before you click on any of these ads or get started with your own internet business you should ask yourself what are the advantages of an internet home based business over a traditional business.

This is a difficult answer to get to, not because the answer is hard to find, but because there are so many answers to this question. Just off the top of my head I can think a dozen reasons for owning an internet business. Here are half a dozen reasons to start with:

1 – An internet home business allows flexibility in your life.
The internet is open 24 hours a day 7 days a week. For this reason alone you are not limited to working the traditional 9am to 5pm of a regular business. This allows you the flexibility to work when it fits your schedule. You still need to put a plan together when you will work and stick to it but you get to choose the best time of day to work on your business. If you enjoy taking your kids to school and picking them up at the end of the day then work from 9am – 3pm. Or maybe you are at your sharpest during the early afternoon hours. Just schedule your tasks for the time of day when you’re most productive.

On top of the flexible work hours technology is allowing internet business owners to move outside the office to work online. Laptops can be taken anywhere with an internet connection. Even the new cell phones can go online from anywhere. I personally have run my internet business from a hotel balcony in Maui for a week.

2 – An internet business offers great opportunity for leverage.
When starting any business most start out with more time than money. Most successful businesses have a plan to reinvest the profits of the business back into the business to accelerate its growth. Often this reinvestment allows for the owner to cut back on the time spent in the business while growing the business. This is what leverage is all about. An internet business can give you leverage in the form of more time or more money. The great thing about an internet business is this reinvestment can happen quickly because of low start up costs.

3 – Low overhead costs
When comparing an internet business to a traditional offline business you will notice that an Internet business typically does NOT require a large investment of capital to get started. This is for the simple reason that to start and run an internet home based business you don’t have to invest in inventory, office space, equipment or employees. You can even sell products online without every touching, packaging, or shipping them. Try that in a traditional store!

All you usually need to start an internet business is your own domain name, web hosting account and ‘autoresponder’ (an email program that can collect names and email addresses). The costs of these usually add up to less than $100 per month. There is no way you can even get an office space for rent that is that low, let alone the heating costs.

4 – The choice of what to sell is limitless online.
The choice of what to sell online in today’s world is limited only by your imagination. No matter what market you decide to target with your business you can sell anything to them online. You can sell and ship physical books, or even digital ebooks. You can sell software, tools, training, or even just give away information on your blog and sell advertising on your blog. The sky is the limit when it comes to how to generate revenue online.

5 – Personal Satisfaction
By having more choice of what to sell or how to generate income with your business online will lead to more personal satisfaction in your life. Running an internet business in a topic or niche that you are passionate about allows you to do what you love. If you love to play hockey, for example, there are numerous ways you can build a business around marketing equipment and “how to” information to other people who like to play hockey! This lets you help others, have fun and make money doing what you love. It doesn’t get any better than that!

6 – Once you figure it out you can create multiple businesses
When doing business online there is no limit on the number of Internet businesses you can own. This is especially true in information marketing based businesses. If we go back to our example of running an information business on hockey, once you get that business up and running you can easily duplicate that business model on another passion you have. All of your traffic generation, sales processing, product delivery that you created for the first business can be duplicated and repeated much quicker for your second business. The key to this is to have a proven business model that you duplicate over and over again. You don’t even have to stay in the same market niche. You just have to have an overall model that works.