How to Start a Successful Business, Part 2: After You’ve Prepared

The time has come to bring your business to life. Get excited!

There is a lot to think about before starting a business, and we touch on the basics in Part 1 of this “How to Start a Successful Business” blog post.

If you’ve been following our blog, you will have already begun to build the foundation of your business. You’ve thought through all sorts of things! Awesome work.

Now it’s time to take some concrete, tangible actions.

Let’s jump right in!

Choose a Business Name

One “thinky” thing we didn’t mention in Part 1 of this blog post is choosing your business name. 

Names can be tricky. (Just ask that dude named Sue…)

You’ll want something with a ring to it – something that points toward you, what your business offers, or the values you support through your business.

Don’t get too caught up on this – you can change your business name later if need be – but you will want to pick a name that means something to you and any other namers involved.

So what’s it gonna be?

Ah, yes. That’ll do, bud. That’ll do.

Apply for an Employer Identification Number (EIN)

If you’ve already read Part 1 of this blog post, you will have decided on a business structure for your business.

Is your business a sole proprietorship? An LLC? Or something else?

If you haven’t decided which structure your business will have, you may want to check out the Small Business Administration’s comparison of the different business types.

To obtain an Employer Identification Number (EIN) from the IRS – for tax identification purposes – you will need to have chosen a business structure. 

Some – but not all – types of business structures are required to apply for an EIN. Obtaining an EIN is cost-free and may help protect your identity or tax information, though…so why not?  

You can apply for an EIN online, through the mail, in person, or by fax. If you choose to apply online, you will receive your EIN within minutes!  

Simple as pie.

Sole proprietors are not required to have an EIN. However, if your business is a partnership, an LLC, or any other type of business structure, you may be required to apply for an EIN for your business.  

Check the IRS website for the most up-to-date requirements.

Register Your Business with Your State and Local Governments

After registering your business with the IRS, it is time to look into the state and community government requirements.

Not every type of business or business structure is required to register with their state or local governing bodies – but others are.

Depending on the nature of your business, you may also need licenses and permits to operate legally.

If you are unsure whether or not you need to register or license your business, check with your local Small Business Administration (SBA) and the websites for your state and local governments.  

Your local SBA office and the SBA website are packed with helpful resources for small business owners, new and old. If you need financing for your business or other assistance, your SBA is a great place to start.

Open a Business Bank Account

We briefly touched on why to have a business bank account in Part 1 of this blog – now it’s time to open one!

Keeping your personal and business finances separate is vital to business bookkeeping – and can also help you protect your personal assets if something goes wrong with your business.  

Besides, you may need to pay payroll, send or receive checks using your business name, or get a company credit card. All of these things will require a business bank account.

Business accounts differ from personal bank accounts, and you may need an EIN to register for one. Each bank handles business accounts differently, so shop around! Choose a bank you trust that fits your business needs.

Determine Your Business Accounting Process

Once you have your financial institution figured out, it is time to think about accounting.  

Sometimes the invoicing platform you choose to receive money through doubles as an accounting platform – like QuickBooks or Wave – but you may decide to use a separate software or process for your business accounting purposes.

There are countless accounting options available to your business, and your needs will differ depending on your business type and structure.

The general idea, though, is to prepare for tax season as you go through the year – and pay your business taxes quarterly, if need be.  

Taxes are calculated differently for every business structure – but having your business income and expenses recorded all in one place is essential for filing your taxes smoothly and correctly.

Even if you decide you’re going to hire an accountant or bookkeeper to keep track of your business finances and file your business taxes, now is the time to think about how you will keep track of your expenses and income throughout the year.

The basics? A spreadsheet (or similar document) with a column for your business earnings and another column for your business expenses.

This spreadsheet is called a “profit and loss sheet.” It serves as a record of your business finances and can be used to calculate your business profits and taxes.

Each line of a profit and loss sheet should contain a detailed description so that you can easily determine where your money went or came from.  

Regardless of how you decide to file your business taxes – or how you choose to produce your profit and loss sheet – an accurate and legible financial record will be necessary for your business.

Set Up a Workspace

Okay, enough of all that tax junk.

Now for the fun part – setting up a workspace!

Remember those days as a student, when you would study in bed and wish you were sleeping instead…and find yourself distracted or dozing off?

Yup. That’s psychology for you.

If your business is going to succeed, you will need a designated workspace. (Even spray foamers need to do paperwork sometimes!)

It doesn’t necessarily need to be a super fancy office space decked out with hand-carved mahogany and Italian leather furniture. It doesn’t even need to be an office.

Your workspace doesn’t have to be expensive or shiny. It simply needs to be a designated area that you use only for work…  

Even if your “office space” is a specific chair at your dining room table that you never sit at unless you’re working…

Or a folding chair and a TV tray that you use only for conducting business.

If you’re working with limited space, you may need to set the work mood differently – such as listening to a specific playlist that helps motivate you or drinking coffee from a special, “work-only” mug…

Anything that sets your work life apart from your home life and tells your brain that it’s time to get some work done.

It may sound silly, but our brains respond to routines.

Your brain is an amazing thing.

Work with it!

Set Your Business Hours and Work Routines

You’ve created yourself a workspace and done all of the foundation work for getting your business started off on the right foot.

Well done!

What’s next?

Planning – and publishing – when you will work.

What “office” hours will you keep? (Even if those hours are not in a conventional office.)

When will you be available to your customers and your business?

Routine is key here.

If you get up at a certain time every day and go to bed at the same time every night, your body will catch on. As a result, you’ll start getting tired at your bedtime and may even wake up before your alarm.

The same is true for focus at work.

If you have a regular schedule to follow, you will be more likely to complete your tasks in the given time.  

Likewise, if your business hours are clearly communicated, your customers will know when to reach you – and you’ll be more likely to stop working after hours.

Without boundaries, your business won’t be sustainable. Forcing yourself to be productive 24/7 will only lead to burnout.

You are a human being, not a robot.

Work-life balance is a thing, man! Other non-work things are important in life, too!

You need quality sleep and nutritious meals and honest relationships and time to relax and recharge – just like everyone else.

So.

What are your business hours?

And what will they tend to look like?

Setting aside all preconceived notions, think about how your body and brain move through most days.

When are you best able to cope with the rigorous work of the day? 

Do you think better in the morning or the afternoon? Are you at your best in the evening?

Once you identify your peak hours, you can schedule your workday around when you are likely to produce quality work.

Business can seem cut-throat – but you don’t have to follow everything others do to succeed.

Find your own way! And adjust your schedules and routines when necessary.

Conclusion

Starting your own business can be intimidating – but nothing worth doing is easy!

You’re prepared and you’ve got what it takes, man. 

Go get ’em!

If you’re still doing initial research, check out Part 1 of this How to Start a Successful Business blog post before you take the actionable steps above.  

Thinking before you act can save you loads of time and energy down the line. Once you’ve prepared, you will be better equipped to navigate the world of business.

Have questions you want to ask a real person?

Give us a call!

Freedom Consulting, LLC is here to help you through the business start-up process – and beyond.

Let’s get your business off the ground together!