"Hell, there are no rules here - we're
trying to accomplish something."
Thomas Edison
Welcome to The
Golden Sense! My fiancée, Rebecca, recently became a Pilates
instructor. We predicted early on that being a Pilates instructor wasn't all
about teaching Pilates - it's about running your own business. No matter
what you choose to do in life, whether it's being a chef, designing the new
Facebook, or becoming a doctor...it's all business. You might specialize in a
certain profession ,but in the end you’re conducting or running a business for
yourself or for someone else.
I think deep
down, everyone wants to start a business of their own. The idea of freedom and
the sense of ownership is particularly appealing. Every year, thousands of people catch the entrepreneurial spirit,
launching small businesses to sell their products or services. Some businesses
thrive while others fail. It is the nature of the market.
You no longer need to go to the best schools to acquire knowledge needed
for running a business. The information is out there for everyone to benefit from.
Yep, you wouldn't believe it, but
it's called the Internet. Make use of it.
Have you ever heard of Bill Gates or Mark Zuckerberg? They're college
dropouts who started billion dollar businesses. Countless others with less
intelligence than those two have started and ran successful businesses.
The more you know, the more power you have to form an organization that
develops into a lasting source of income and satisfaction.
So where do you start?
The old adage states, "find a
need and fill it".
Rebecca wanted to fill the need of
"instructing Pilates." So we went from there.
First you have to determine if you
can make money. Your business idea is worthless if you can’t make money. Do a
break even analysis. In simpler terms: make sure that your income covers your
costs. Then write up a business and marketing plan. If need be, seek out
some start-up financing.
In Rebecca's case, she pays rent
to a high quality Pilates studio and makes the difference from what she charges
for a class. She uses social media, business cards, and word of mouth for
marketing. For Rebecca, marketing is a tough challenge because her budget is
small and she strongly depends on good referrals.
You'll have to identify the number
of owners in your business, your ownership structure, protection from personal
liability, and how the business will be taxed.
Rebecca decided she would be the
sole owner and structure her business as a sole proprietorship. She has
insurance to cover her liability. She decided to work as an independent
contractor and rent from established studios. She likes it this way. She
has low overhead, no employees, and the freedom to set her own schedule.
Once you have
your company's name, check with your county clerk's office to see whether your
proposed names are on the list of fictitious or assumed business names in your
county. For corporations and LLCs: check the availability of your proposed
names with the Secretary of State or other corporate filing office. Do a
federal or state trademark search of the proposed names still on your list. Change or eliminate the name if the proposed name is already famous, confusing to customers, and/or legally trademarked.
Your business should be established as either a partnership, LLC, C
Corporation or S Corporation. For Rebecca, it was easy. She made herself a sole
proprietor and was on her merry way.
If your business is selling a product you will need to find the right location. The ideal business should
not be location specific because ideally the product sells to the world. That
means the product or service is not dependent upon its surroundings. Either
way, make sure the spot is properly zoned or permitted and determine the price
or lease amount.
Of course the
B.S. goes on in regards to acquiring insurance and so forth. Starting a business
is filled with annoyances but in the end it will be worth it.
You will need
to set up your books by using a specialized program for your industry, Quickbooks, or Excel.
Conducting the correct accounting measure is extremely important in business.
Make sure you set up the correct bank accounts and prepare for tax
reporting.
Rebecca uses
Excel to keep track of much she makes, how much she needs to deposit
for rent, and how much she puts in her tax savings account. She knows she needs to
report taxes quarterly, so she has her smart phone remind her just before the
end of the quarter and then she can pay taxes through her tax savings account.
All business is different and some
businesses require more detailed start -than others. These are just the
basics all businesses must consider. Being successful in business can be tough.
However, I recommend everyone try it at some point. I as well plan on taking my own advice at some point.
Each one of these individual tasks can be difficult and is probably best suited for a different kind of personality.
As the great Richard Russell says,
"All
successful businesses need three kinds of people: a dreamer, businessman and a
S.O.B."
So if you’re on your own and the
going gets tough, try to remember which "hat" to don.
Best,
T. Norman
So is the European Union going to
collapse? A Greek tragedy of epic proportions? I think some dramatic
changes are in store. Keep your money safe from these troubles. Everyone should know this by now. As Bob Dylan
says, "You don't
need a weatherman to know which way the wind blows".
In the town of Santa Ynez, CA about a year and a half ago a shop named the '2nd Amendment Gun Store' opened. The guy who opened it was a realtor in his past life until 2007. At that point he realized that real estate was in for a tough time. After quiting, he thought things through and believed gun sales were going to be a growth business in years to come. He then went on to open the store. Since the opening of the store he has a had a steady stream of customers. He says his biggest problem is procuring inventory. He says some items are backed up as much as six months. Even ammunition is harder to come by. So his biggest problem is supply and not demand. You will notice a rising trend if you check out the stock price of large gun manufactures. Due to the current political environment and poor economic condition it is no wonder gun sales have been a successful business the past few years.
Chelsea did it! They won the European Champions League for the first time in their history! It was written in the stars for them as they rode their luck throughout the final. They beat Bayern Munich in a penalty shootout. It was amazing. I have never seen a German team lose on penalties as they generally have nerves of steel.
