The Late Night Business Idea
It’s 3am and you’re staring at the ceiling. It’s 12pm and you’re eating lunch at your desk while you clean crumbs from your keyboard. It’s 5pm and you’re fighting traffic on your way home. You had no intention in the slightest of starting a business before this second, truly, but the second comes. You have an idea.
You have this idea that won’t leave you. You have this idea to start a business because you think you can deliver a service better. You think you could impact your community more if you could just alter the process a little so it’s more efficient. You think that you could make things better for your family if you just had some extra income from your own business.
Regardless of the origins of your idea, you think you could, maybe, run your own business.
You think you could…
But should you?
The Worrying Questions
It’s a question clients have asked us many times over the years. So many of our clients battle with what Psychology Today calls their alter ego. Their alter ego poses many questions, so many worries, many of them valid.
The biggest one goes like this, “I know that many small businesses fail within the first couple years. Is it even worth it to take that risk?”
Why Small Businesses Fail
Small businesses can fail for these common reasons. It is worth noting, however, that these are not the ONLY reasons…
1. Undercapitalization
It happens to many businesses that first open their doors. They know they need $20,000 to open their business, and they know they have it. They’re ready to open their doors. So they put all of that $20,000 into their business to buy equipment, to put down deposits for rent and utilities, to invest in some furniture or office supplies.
But what happens when your new equipment breaks, and you have no reserve cash to get it fixed? What happens when customers don’t pay you for your services, and your landlord or the utility company bills are due? What happens if there is no steady stream of income coming in like you dreamed and you have no money to pay yourself, or even your employees?
Pretty soon, you’ll close your doors forever because you have no money to stay in business.
That’s the danger of undercapitalization: not having enough money to sustain yourself and stay in business.
2. Poor understanding of accounting, budgeting, and the workings of corporate taxes
There’s software out there for accounting, like Quickbooks, that make it seem like any and every businessman can keep the books for their company. The reality is that if you have little to no knowledge about accounting, you will make mistakes, and not just in accounting either. Ignorance of tax law and how it applies specifically to your business can cost you thousands of dollars.
Losing unnecessary money also feeds back into undercapitalization. You lose more money than you make, and once again, you have no money in reserve to keep your business running.
How To Not Fail in Business
What if you could plan for these issues instead?
What if you could save yourself money by hiring expertise to review tax law with you and apply it to your own, unique business?
Shank & Company, CPA, can assist you in opening your own business, helping you devise a plan to avoid undercapitalization, to help you save money by providing you financial advice based on the tax law. We can handle your accounting for your business so that you can use your expertise in your field to run your business.
If you are looking to start a new business, we can help you with every step from beginning to end. We can assist you in registering your business with the IRS and the Secretary of State. We can help you file your business as an LLC and help you request S-Corp status. We can help you set up payroll for yourself or other employees at your company. We will gladly speak on your behalf with the IRS or state/local government should any issues arise. And, if you are ever unsure of the contents of the mail you receive from the government, bring us the letter and we will help you understand what it says. We also provide accounting services, payroll services, as well as consulting and budgeting assistance. We make it our mission to deliver excellence and to deal with the government on your behalf.
We know that your time and money are valuable, especially when you are running a small business to provide for yourself and your family.
If you are looking to start your own business, please contact us via email at sandccpa@gmail.com, phone call at 513-442-1239, or fill out our new client form on our contact us page on our website.
We promise to treat you like family while helping you stay in business smarter.
