Last Updated: August 31, 2009
Thinking about starting your own business? There's plenty to consider. FPA member, Michael G. Orf, CFP®, of Orf Capital Management, suggests that you consider the following:
- Should your business be set-up as a corporation, a limited liability corporation (LLC) or as a sole proprietor? Do you need to get an Employee Identification Number (EIN) from the Internal Revenue Service (IRS)? Learn more about the EIN.
- What compliance and or regulatory issues are involved? Do you have city codes with which you must comply? Are there special licenses that you need for your business?
- How will you handle cashflow issues? What will be your policy regarding paying suppliers vs. getting paid by customers? For example: If suppliers demand money now but you give customers 30 days to pay, you can very quickly get into a big hole. If you need a bank to help you, they will probably require a written business plan.
- How will you keep track of your competition while building your "brand?"
- How will you market your service or product?
A financial planner can help you create a financial plan for your business. Find a planner.