Starting a business is an exciting journey, but it can also feel overwhelming. Breaking the process into manageable steps can help ensure you’re set up for success. We recently covered this topic in our Live on Socials on Friday, 12/13/24—because starting a business doesn’t have to be as scary as Friday the 13th! Here’s a roadmap to guide you, with specific tips for entrepreneurs in New Jersey. Remember, The Oakley Group is here to assist with many of these steps.
Preliminary Steps
Step 1: Have an Equitable Idea Start by brainstorming a business idea that aligns with your passions and has potential longevity. Consider whether your concept will work year-round or is seasonal. Assess the market demand and the unique value your idea brings.
Step 2: Draft a Business Plan A solid business plan is critical for understanding your venture’s sustainability. Include these essential elements: Executive summary, Market analysis, Financial projections, Marketing strategy and an Operational plan. Need help drafting your plan? Contact The Oakley Group for expert guidance.
Step 3: Build Relationships Develop the following connections that can support your business. Banking and Lending (Open a business account and explore funding options), Family and Friends (Seek advice and potential support), Insurance Providers (Protect your business with appropriate coverage) and Community (Network locally to build trust and visibility).
Step 4: Determine Your Risk Should you form an LLC or a corporation? This depends on Personal liability, Tax implications and Growth plans. Assess your risk profile with professional advice. The Oakley Group can help you evaluate your options.
Step 5: Draft a Budget Create a budget to estimate your revenue and expenses. This will help you understand your tax liability and financial viability.
Step 6: Apply for an EIN and Register Your Business Obtain an Employer Identification Number (EIN) from the IRS. Apply for an EIN. Then, claim your business name and ensure it’s unique in New Jersey. Check availability here.
Step 7: Register Your Business and Obtain Licenses Register your business with the state of New Jersey and federal government. For New Jersey-specific requirements, go to Register your business. Determine if you need additional licenses or permits via the NJ Business Portal.
Step 8: Build Your Brand Your brand is your business’s identity. Consider, creating a logo, tagline, and color palette using tools like Canva. Developing a website and social media presence. Most importantly, crafting messaging that resonates with your target audience.
Step 9: Get Compliance Documents in Place Ensure you’re legally protected with essential documents such as an Master Service Agreements (MSA), Partnership agreements and/or Employee handbooks. The Oakley Group can provide customized support for these compliance needs.
FAQs About Starting a Business
When does my side hustle turn into a business? When you see that it has sustainability and growth.
When do I get a business bank account? You do not necessarily need to set up a “business” account, but you should always deposit money into a separate checking account, outside of your personal bank account. Some banks will not work with start-ups, defined as businesses less than 2 years old. However, there are banks that will help you transition when ready for a business account.
At what point does the money I make become taxable? Once you make more than $600.
When do I pay myself as the owner? It depends on your corporate structure (LLC or Corp). As a Corp or S-Corp (a tax designation), you need to be paid via a payroll company and receive a W2. As an LLC, you can take a distribution or pull money directly from the account. We advise paying yourself a percentage of the monthly profit rather than pulling funds just because cash is available.
What tax write-offs should I remember? It depends on your corporate structure. As an LLC, you can claim allowances such as mileage, home office expenses, etc. As a Corp, you cannot claim mileage or home office deductions but can take advantage of other business deductions. Consulting a Certified Accountant Practitioner (CAP) during tax planning is highly recommended.
What free resources are available? Your local library: Offers market research tools and often has a notary on staff. Economic Development Centers provide free training in areas like Excel, marketing, and work-life balance. Small Business Development Centers (e.g., Rutgers) can assist with business plans, budgets, and registration. Lastly, SCORE provides free mentoring and resources.
How do you set boundaries with family and friends about providing services for free? Communication is key. Understand your budget to determine how much you can offer for free. Frame giveaways as marketing opportunities (e.g., portfolio building) or consider bartering. Limit advisory services to 15-20 minutes if offered for free.
Starting a business is no small feat, and we know how many hats you wear—especially if you’re a mom-preneur. Balancing family, home, and business is no easy task, but you don’t have to do it alone. At The Oakley Group, we understand the challenges of juggling it all, and we’re here to be a part of your tribe. Let us help lighten your load so you can focus on what matters most. Contact us for support by scheduling a personalized consultation today!
