any advice for an individual seriously considering starting a business

[degenerategambler]

I'm about 75% convinced I will be going into business for myself in the spring of next year. If you own or have started a business, what is the most valuable piece of advice you would give a beginner? Where do you go for information? How should I organize the business? INC, LLP, LLC? I know I do not want to be a DBA for liability reasons and I am leaning towards INC. There will be a minority owner/partner. BTW I am located in TX and will be conducting the vast majority of business in TX. Thanks in advance for any wisdom offered.

[ThaSaltCracka]

go take a small business class at some local college. They take a few days to do, but its worth it.

[degenerategambler]

That is definitely in my plans. I managed to graduate from college without taking a single freakin business class thanks to the nature of my degree. Can you believe that? I thought I was lucky at the time.... /images/graemlins/frown.gif

[ThaSaltCracka]

yeah, you are probably gonna want to take some business classes too.

[lapoker17]

Write a thorough business plan before you do anything else. It's a pain in the ass, but is imminently valuable (and so many people who start businesses don't do it).

[CCass]

Make sure you pay all of your payroll taxes on time. Back taxes oewd to the KGB (I mean IRS) will bankrupt a small business in a heartbeat.

[nicky g]

Always introduce yourself as "degenerategambler" to all those involved in your business-related activities.

[David Steele]

I think it depends on what kind of business you start.

INC is good if you may have investment rounds to fund the startup and want to be protected more from personal liability.

The partnerships are handy for various tax reasons like passing on losses each year. The best answer would come from an accountant, who would also be useful to retain for the business.

D.

[Zeno]

How well do you know your 'partners'? Are you going to have employees and if so how many? That is an important thing to know and/or to plan for as it has implications on many rules and regulations.

The small business administration has a useful website Start up (http://www.sbaonline.sba.gov/starting_business/) . The IRS also has publications about small business taxes etc, check out their website.

Health insurance, business insurance, state tax structure (gross reciepts taxes for example), office supplies, computer services and support etc etc etc. There is much to consider, depending of course, on the size of the business that you intend to start.

-Zeno

[tek]

Make sure you have enough working capital for the business and your personal expenses. Most new businesses go under within 12 months because of lack of capital.

[Rooster71]

[ QUOTE ]
I'm about 75% convinced I will be going into business for myself in the spring of next year. If you own or have started a business, what is the most valuable piece of advice you would give a beginner? Where do you go for information? How should I organize the business? INC, LLP, LLC? I know I do not want to be a DBA for liability reasons and I am leaning towards INC. There will be a minority owner/partner. BTW I am located in TX and will be conducting the vast majority of business in TX. Thanks in advance for any wisdom offered.

[/ QUOTE ]
So many thing revolve around the type of business you are planning to start. Is it a service business? A franchise? Is there real estate involved? Employees? Large amounts of inventory?

Some good advice has been posted in this thread. The business plan is important and so is proper funding. Two really basic things that people often overlook are 1) take the extra effort to associate with the best people you can, and 2) always keep an eye on expenses. This probably seems like third grade advice, but it's also the same reasons many new business quickly fail.

I am also from Texas and owned a real estate brokerage business. Don't screw around with the Comptroller, those guys can get nastier than the IRS.

[ddollevoet]

[ QUOTE ]
Write a thorough business plan before you do anything else. It's a pain in the ass, but is imminently valuable (and so many people who start businesses don't do it).

[/ QUOTE ]

This is excellent advice.

[tripdad]

don't enter into anything with rose colored glasses. most people think those who own businesses are somehow better off financially than everyone else. the fact is that most who are small business owners are making a living or less.

also, make sure to define the roles of partners in writing. in-fighting among co-owners can ruin even a great business idea.

so far as taxes are concerned(whether to file as INC, etc....), only your accountant can answer that. it depends on what type of business you are starting.

overspending ruins many a start-up. so does under-spending.

cheers!

[Rooster71]

[ QUOTE ]
most people think those who own businesses are somehow better off financially than everyone else. the fact is that most who are small business owners are making a living or less.

[/ QUOTE ]
Very true. Additionally, most people don't realize that small business owners put in a lot more hours than those who work at regular jobs.

[Evan]

What type of business are you starting? That info would probably get you better responses.