Are you a freelancer who is ready to take the next step and turn your work into a small business? If so, there are a few key steps you'll need to take to give yourself the best chance for success. In this article, we'll outline what those steps are so that you can hit the ground running with your Marshall area business.
Draw Up a Business Plan
One of the first things you'll need to do is create a business plan. This document will outline your business goals, strategies, and how you plan on achieving them. A business plan is essential for any small business, as it will help you secure funding and attract investors.
Think About Returning to School
Another important step to take when starting a small business is returning to school to earn your degree. While it's not required, having a degree in entrepreneurship or business will give you the skills and knowledge you need to run a successful operation. Additionally, many lenders will only give loans to small businesses that are owned by degreed individuals.
Form Your Legal Structure
When you're ready to legally structure your small business, you'll have several options to choose from. Many budding entrepreneurs choose to form an LLC or an S corp.
An LLC Minnesota designation provides a number of important benefits, including limited liability protection for the owners of the company. This means that if your business is sued, the owners will not be personally liable for any damages or judgments awarded in the lawsuit. An LLC can also help you to attract investors, as it conveys a certain level of professionalism and stability. Additionally, LLCs are relatively easy to set up and maintain, making them a great option for small businesses.
On the other hand, structuring a business as a Minnesota S corporation can be a great way for small business owners to save money, simplify their tax responsibilities, and minimize their tax burden. An S corp is treated as a “pass-through” entity for income taxes. This means that the income from the corporation is reported on the owners’ individual income tax returns rather than being subjected to double taxation at both the corporate and individual level. Additionally, S corps automatically enjoy limited liability protections, meaning if the business fails, creditors cannot pursue the owners’ personal assets in an attempt to recoup losses. Furthermore, if an owner puts extra money into their business beyond salary or wages, they can claim that extra amount as a deduction on their personal return.
Meet as Many People as Possible
As a freelancer, you're probably already familiar with networking. However, when you're starting a small business, networking takes on a whole new importance. That's because networking can help you find clients, partners, and employees for your new venture. Attend local business events and get involved in the Marshall Area Chamber of Commerce and other professional organizations. The more people you meet, the better your chances of finding success for your small business.
Market Locally and Beyond
Finally, once your small business is up and running, you'll need to market it effectively so that potential customers are aware of your products or services. There are many ways to market a small business, including online advertising, PR campaigns, and content marketing. Figure out which marketing channels make the most sense for your business and start promoting!
Starting a small business is a big undertaking but it can be hugely rewarding both personally and professionally. By taking the time to create a business plan, return to school for your degree, form an LLC or S corp, network like crazy, and market effectively, you'll put yourself in prime position for success.
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