Mastering Basic Administrative and Management Issues

By Bonnie Wallsh

I strongly recommend that you contact an attorney who specializes in working with small businesses to help you establish your business. Certainly, there are books that tell you how you can set up your own business for just $75.00 but I think that there is too much risk in doing it yourself. You will also need an excellent accountant who will help you analyze financial aspects of your business. Ideally, the accountant and attorney should work in tandem in adhering to your business plan. Your personal and business goals will influence the recommendations that they offer you.

First, you must determine how you want to form your business. Decide whether you want to form a sole proprietorship or partnership. You need to get your Tax ID numbers from the Internal Revenue Service. You will need to obtain business licenses and do a search in your state capital before you finalize your business name.  Create independent contractor agreements to present to your clients. Become familiar with how to protect your intellectual property and the importance of trademarks and copyrights.

Once you have selected your attorney, you will want to develop your income statements, balance sheets, and analyze your cash flow. You will be expected to pay taxes which vary from state to state. If you require a loan to establish your business, prospective lenders will expect you to submit a business plan. You will need to obtain insurance including professional liability, office, and health insurance. If you have employees, you will require unemployment insurance and workers compensation. Create a risk management plan for your business preparing contingency plans in case of unexpected crises.

In order to set up your office, you will require equipment some of which you may already have or you can purchase used. You will need a desk, comfortable chair, proper lighting, bookcase, file cabinet, business telephone, answering machine, copier, scanner, printers, computer including hardware and software, postage, and office supplies. You will want to order trade publications and create your business library.

Since you will be spending many hours in your office, I recommend creating a comfortable environment. My home office has 3 windows overlooking my garden and I have motivational posters and keep photographs of my husband and children within easy viewing. I have a radio/CD/cassette player for my favorite music. My son presented me with a tranquility fountain for my desk and a screen saver of a fish tank for my computer. My 3 Siamese cats will sometimes curl up on chairs within the office and demand stroking.

As I wind down my week as a MIguru, I want to leave you with this quotation.

“Nothing in the world can take the place of persistence. Talent will not; nothing is more common than successful men with talent. Genius will not; the world is full of educated derelicts. Persistence and determination alone are omnipotent. The slogan “Press On” has solved and always will solve the problems of the human race.”

Lawrence E. Wikander, Curator, Calvin Coolidge Memorial Room, Forbes Library, Northampton, MA

Comments

[Binoche]

Good morning,

I just read your article it is very interesting, it is unfortunate that it is so short! I am starting my own business in Montreal and I am having trouble with what to charge (I do not want to charge on percentage I prefer a amount on hours worked). It is difficult to evaluate how much time will be spent on each project! I never realized that the amount of time on an mid size event (dinner gala) would be so high, in my previous experience in a corporate environment. I find that the prices I would have to charge would be very high. Would you have any advise on those matters? You may have online ressources your can point me out? I cannot find any information about these particulars, It seems like this is very private and nobody is willing to share this info.

Thank you and have a great day!

Binoche

Thank you!

[Family Limited Partnership Pros]

Answering machine is a little outdated, to be honest. These days if you just have a business cell you can just use the voice mail from that instead. Works just as well!