Business Fundamentals Part IV -
Become a Legitimate Business
David Stowell
Here's where we've been so far:
- Decide what we really want from our business... the kind of business we really want to build
- Take an honest look at what we have to offer clients and what clients are really looking for from us
- Start getting students
Next, we've got to examine a few of the "nitty gritty" details of being in business -
Fundamental 4 -
Become a legitimate business.
There are 2 very key elements in this fundamental:
- Being a legitimate business
- Looking like a legitimate business
Part 1 - Being a legitimate business
This is one area to get taken care of as soon as possible. You can go years without taking care of some of these little details, and then one day they jump up and "bite you" to the tune of several thousand dollars. Your business should be a real business, recognized by your city, county, and state officials as a real business.
While each municipality is different, here is a quick list of some of the considerations you need to take care of:
- Fictitious business name
- Business license
- State and federal tax ID numbers
- Employer ID numbers
- Business bank account
- All local and state "paperwork" filed
- State sales tax registration
- Business filing (Corporation, LLC, etc)
- Zoning ordinance researched and complied with
- Building/facility inspections taken care of
I'm NOT suggesting you call attention to yourself or your business. You don't want to give agencies the opportunity to make your life miserable. On the other hand, you don't want to "live in fear" of being discovered. You want to sleep well at night knowing that you have covered all the regular details.
A few years ago, the unincorporated area of Los Angeles county known as Diamond Bar (where our business is) became a city. When we called to find out what that would mean to our business, we found out that no new paperwork was required, and that no city business license was required for our kind of business. It was nice to know that there was nothing more we needed to do.
Don't walk into city hall and announce that you've been doing business and need to know what you should have been doing. Quietly contact your city or county and find out what is required for a business in your community.
The faster you can handle these details, the sooner you get to spend more energy working with students and the less energy you expend on fear.
Part 2 - Looking Legitimate -
If you are going to be a legitimate business, make sure you look like a real business. Looking like a real business instills confidence in your clients and prospects. Even if you operate out of your house (and now there are more and more people working from home) you can set yourself up to look like a real business. Here is a list of things to make sure you have and a place to get them for little or no money:
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www.gotlogos.com - $35
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- Business Cards, stationary, envelopes
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Shop around locally and online
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- A one page, on paper, explanation of what you do for your clients
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Check with local and online sources. Use really good paper. It's best to get them locally so that you can get them fast when you need them..
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- Business Phone (not answered by a 12 year old)
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Phone service is becoming much less expensive all the time. Again shop locally and online
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There are a couple of options:
- www.efax.com - receive faxes through your email for free
- Get a device that automatically senses faxes and routes them to your fax machine and use your voice number
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- Answering machine (not answered by the family dog)
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Machines are still less expensive than voice mail from the phone company
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Get into the local phonebook that most people use. That will usually be from the company that provided phone service in your area before the telephone company break-up.
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- E-Mail address (NOT aol, hotmail, or yahoo)
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This doesn't mean that you can't receive your mail at one of those locations, just make sure that when you give someone your e-mail address it is [email protected]. You can always forward your e-mail to wherever is most convenient for you.
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For small web sites, you can do-it-yourself for as little as $40 per year. www.registerfly.com to register your domain, www.soniqhost.com for web hosting. |
Some of these may seem a little trivial to you. Remember that impressions are very important, especially when you are asking people for their money. They need to feel as if you are real, committed, and serious about your business. These items give you the "look and feel" of being a real business.
Remember, both being legitimate, and looking legitimate are important.
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