How to start a small business in less than five hours with applying some creative business ideas is quite easy and pretty simple—all you have to do is taking your initial step towards it. Here in this article, I will discuss how you can pass through all the administrative difficulties with an easier and much simpler way than you ever thought.
Before I start, I want to share a story with you. One of my relatives wanted to start a new business for so long and whenever we meet, that was the only topic he wanted to talk about most. No doubt, I got so tired hearing that same stuff all the time and finally one day I had to ask him, what is the problem that stops you launching your creative business ideas?
I am pretty sure you can guess what came between him and his dream project. He was representing a lot of us who have a dream to become an entrepreneur all their lifelong but don’t know how to start a small business. As most of us think starting a small business is kind of hard and very complicated, “I don’t want to take those entire headaches in my mind unless I am sure enough that my small business ideas will survive in the market, he simply replied. He was stuck in there because he thought there will be a quite complicating administrative process involved in terms of launching his new business project.
when he saw me taking a challenge to get all this administrative process done in less than five hours, he was like….Are you kidding me? Well, let’s start it.
Before starting, I want to clarify one thing; this will be only an initial stage of the business setup process, not the whole creative business plan and creative business strategies.
How to start a small business overcoming all these administrative hurdles with creative business ideas, here in below:
1. Pick a company name instantly.
Many of us take endless time just to come out with an attractive and innovative company name. If you are also one of them who want to develop a perfect company name before anything else, you are just losing your money making creative business ideas to rolling.
So here you go, at least for this time you have to leave away all your perfect branding and unique company recognition stuffs. You can find a cool design business website along with promotional strategies later. So don’t worry and just grab a company name and start your first administrative process to move on. It will take some minutes to complete the whole process.
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Keep in mind; later you can also pick a wonderful creative business name to run the business under a different company name and you can also change the whole company name if you want.
2. Collect your business (EIN).
You can define EIN (Employer Identification number) as a federal tax number which is basically used due to recognizing your business venture.
An EIN is not essential until and unless you have some business employees in your business or having a specific business plan to create some partnership business, LLC or business corporation.
But I will recommend you to get one anyway and don’t worry; you can get it for free. The great advantage you can have from it is you can reduce the identity theft chance as you keep SSN private. If you missed this chance to have your EIN, your small business will recognize by Social Security number for tax purpose. This whole process to get an EIN will take only minutes.
Now it’s the time to move on to your local administrative official procedures.
3. Get done the trade name Register at your locality.
If your small business operation will be different than your own name, you may be required to register your trade name at your locality. Most of the times, they approved the papers right away on the spot.
4. Now try to get done your new business license.
You must have to provide a business license to develop creative business ideas in your city or country. The administrative form will not take more than a few minutes to complete. For privacy reasons try to use EIN instead of SSN for you small business identification.
They might ask you to estimate your gross annual business revenue. Try to estimate that accurately as much as possible. Don’t be hyper, because you are just submitting them a revenue prediction.
5. If necessary you have to fill up a tax form (business personal property).
Businesses also put taxed on same as individual personal property. Some place does not require them but you have to make sure about your place. If they require, you have to do that. Remember you don’t have to file your tax form for the year you started your business. You are required to do that for the following year.
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If you want to develop some creative business ideas from your home, such as online business, you don’t have to put those items (laptops, computers, tools, etc) that you already bought for the tax consideration.
6. Go and ask your locality if they require any other permits.
Different locality requires different types of permits. Some area requires a “home occupation permit” as to verify your small business ideas that are satisfying home zone requirements.
You can personally go your locality and check if they require any other types of permits. They will guide you.
7. If you need to collect a resale certification.
A seller’s permit which is also known as resale certificate will give you the privilege to collect your state sale tax on behalf of your sold products. Remember if you provide a service related business, you don’t have to put a sale tax on it.
For selling your products, you must need to provide a seller’s permit to the state department. If you want you can do that in online or you can visit physically at the administrative offices to complete the process?
It will not take that long to get this done.
8. Next step is opening a business bank account to operate your small business transactions.
You must open a separate bank account just to maintain your business transactions. If you use your personal bank account on the both purpose (personal and business transactions), IRS may screw up to identify your business funds away from personal accounting. To get rid of this hassle, a separate business account is the best solutions.
You can easily open a business account by providing your small business ideas, name and EIN. There are lots of banks out there, try to pick one you think is convenient. You can also take a look at your local credit unions because sometimes they offer much better deals than other commercial banks. It will not consume more than an hour to do the whole process.
9. Make sure you have an accounting spreadsheet.
You know developing some creative business ideas for bookkeeping is pretty easy and simple, at least for the beginning. You don’t have to worry about having a well-reputed business accounting software for now. All you have to do is creating a business spreadsheet on which you are able to put all your business data. For example, you can put all your income and expenditure on that sheet.
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Without a business spreadsheet, it will be quite impossible to figure out how you will come out with all your revenue income and how to utilize all your business recourses. As your business transactions go higher you can set up a business accounting software just to make those things easy to operate.
Final words before sign off:
How to start a small business in a few hours with applying some creative business ideas was a challenge that I took. Now having all those documentations, we can call you a newbie entrepreneur. And the funny thing is it didn’t take a long to pass through all those hurdles that once you thought will be quite difficult to handle. Remember, I told you it will just take few hours.