Even though the economy is in the dumps right now, it has not slowed down the onslaught of Americans who are bound and determined to start their own businesses.
However, starting your own business is something that is often easier said than done.
When my mom had the idea to start her own desktop publishing business a few years ago, she made sure that she thoroughly understood the process before she embarked on the journey. There was a ton of paperwork that needed to be filled out in order for her to apply as an “S corporation”. For instance, in order for her to even come up with a company name for her business, she had to fill out paperwork in which she came up with three or more different choices for a name of her company just in case someone else already had the name that she was thinking of. A couple of weeks after she had mailed in all of her paperwork, she got the green light to run her own business.
There are many perks that can be had from starting your own business. For instance, most people who start their own business often do so right out of the comfort of their own homes. This was the case with my mother. In order to more effectively run her desktop publishing company, she needed to upgrade her computer to a different one as well as purchase a different printer that would be able to accommodate larger quantities of orders from her customers. All of this cost money. And contrary to what many people believe, if you order things for your company; sure, you can write them off on your taxes. However, keep in mind that you don't file your taxes until a certain time during the year (depending on how you file). Therefore, you have to have the money up front to pay for the items yourself. So, initially, my mother had to put a ton of items on her credit card. Later on, after she had filed her taxes, she earned a return on her taxes that wound up covering the cost of the expenses that she had endured while owning her own business.
If you are thinking of starting your own business, make sure that you first come up with a plan. Also, if you have a day job, you will want to only work on your start up plan in your off hours or when you are not working. Figure out what your budget will be as well as how much money it will cost you to start your business at the outset. Often times, people will end up spending more money on their business during the first year that they own it versus anything else. Once you have figure out how much it will cost you as well as how much time will be involved, then you can decide whether or not you think that it will be a worthy enough venture for you to pursue.