Business Startup Suggestions

Starting a small business is one of the most important things a person can do.  I have some suggestions and one of them is that an entrepreneur should contact the Senior Citizens Organization of Retired Executives (SCORE) before starting a business.  The members of SCORE literally have “Been There – Done That” in just about every industry or business which has ever existed.

They’re available, either in person on line, to help you with getting ready, setting up a business plan, advertising and any other phase of business (http://www.score.org/index.html).

Some cities, San Antonio, for example, have programs and offices intended to help entrepreneurs get started.  They’ll help you get a license if needed and may even make you a good deal on business space. 

You have to be careful with taxes.  Check with your tax preparer regarding what you can and cannot deduct.  For example, I don’t believe you can deduct the portion of household expenses accounted for by your home office if you eat, watch TV, play computer games or anything else not connected with your business in that space. 

You probably can, however, deduct the expense of a dedicated phone line or something like a PC card for your laptop when you can send material to news media from your car.  Leasing, as long as the vehicle is used exclusively in your business, may be deductible. 

If you use your own vehicle, you can generally deduct related expenses but you need to determine the method.  I use the mileage method.  My newspaper pays me $.35 per mile for trips relating to news stories and photos.  The IRS allows a higher amount and your tax preparer can help you get credit for the rest.  One of the good things about mileage is that you only have to keep an accurate log of the miles you actually travel on your job. 

You need to confirm this with your tax preparer, but sales taxes are kind of interesting.  Sales taxes are only paid by the final purchaser.  That means that YOU don’t pay sales tax on anything you resell.  You do pay sales taxes on anything which YOU use in your business.

Should you work at home or get an office elsewhere?  There are many reasons to do either but here are some in favor of an outside office: no question about tax deductions, availability of equipment you might not have at home at no “extra” expense, being able to interact with others and also business opportunities you might not otherwise encounter. 

Networking is also important.  I’m just learning about LinkedIn, Twitter, Face Book, just to name a few.  You can not only meet new people, you can discuss ideas and you might even get some business.

I’m running out of things to say in this article so I’ll end with: Good luck and good fortune to us all.