Welcome to Part 4 of our 6-Part article series. In this article we will discuss; 1. Setting Up Your First Commercial Office (non-home); 2. Hiring Your First Employee(s); and 3. Seeking Investors or Outside Funding. Let’s get started!
- Setting Up Your First Commercial Office: (Non-home) You’ve created a great business. You are on the road to success. Bravo! But, you need an office and setting up shop at home won’t cut it. You need a real commercial location and you need it at a low cost. What do you do? There are a lot of fantastic options available, more than you may realize. I will name a few. Opportunities will vary according to your individual location, but there are deals to be had nearly anywhere you go.
We all know that location is everything, but what does that mean to you? For example, if you are opening a little snack or sandwich shop, location means something different to you than it does to a doctor, an architect or an insurance company. Ask yourself: Do you need to rely on foot traffic? Is parking, or security, or a fancy looking office important to you? Do you need a warehouse for storage? These are all things you will wish to consider beforehand.
The Turnkey: One of the best ideas for office space is the All-in-One turnkey based office. These have been around for many years and are always popular in nearly any economy. This solution is perfect for the small business person who doesn’t need a lot of space. What’s great about a turnkey solution is the price is low, the locations are usually excellent, and the offices are usually very attractive. These are perfect for technology companies, architects, artists, and many white collar businesses that don’t require heavy inventory storage.
The Warehouse: Do you have inventory or a lot of product to store? Then a warehouse may be right for you. Many of these locations are very inexpensive, and many companies are teaming up to share warehouse space to save on cost.
Purchasing Real Estate: Do you have cash on hand to buy real estate? It might be worth looking into because there are deals to be had nearly anywhere you go. Currently, many businesses are buying up residential real estate for commercial use because prices are low, depending on location and zoning.
Still not sure what you need? Contact a real estate professional to help you. But don’t be afraid to jump in and do some research of your own. Check out newspapers and real estate websites. Also comb through classified sites like Craigslist for deals.
- Hiring Your First Employee: You’ve built a business and it’s growing rapidly. Wow! This is a great problem to have, but now you’re stressed out over hiring help. This can be one of the most intimidating aspects of new business ownership. I won’t like to you, payroll is no fun. However, you are not without some easy options.
Use a Payroll Service to Start: Service providers such as ADP, Wells Fargo Payroll, Paychex, Intuit (QuickBooks), and a host of other companies can take the guess work out of the payroll nightmare. A word of caution here: do not attempt to set up payroll by yourself if you’ve never done it before. Deducting taxes properly is serious business and if you do it wrong it can be an accounting nightmare for you and everyone involved. These services are inexpensive and they rarely make mistakes. Plus, they offer payroll tax services which means they will do all that stuff for you. This includes: preparing employee W-2s and contractor 1099s; handling specialty paycheck deductions; handling raises, terminations and new-hires; and last but not least, handling the payroll taxes for you. It is worth every penny you pay the payroll service company. Plus they are insured for the mistakes they make. It’s a win-win for you. Don’t “go it alone” with payroll. Get help from the pros. Whether you have 1 employee or 1000 employees, working with a service is the safest and easiest bet. For a new-hire Interviewing checklist, make sure to visit websites like Monster.com and CareerBuilder.com for assistance. Both sites offer excellent tools for employers.
Hiring a Bookkeeper: If you are in a position to hire a bookkeeper who also handles payroll, that is great! But you will need to screen the individual first. Ask for proof of experience, proof of education and business references to be surenavigate here.
- Angels in the Outfield! Angel Investors Defined: By definition: an angel investor is person or entity who provides financial backing to very early-stage businesses or business concepts. “Angels,” as they’re commonly referred to, are typically entrepreneurs who have become wealthy, often from working in technology-related industries. Up until very recently, angel funding was fairly easy to obtain. Entrepreneurs were constantly in search of something new to invest in. It was a fun time in the world of business! But all good things must come to an end. The day of business gluttony, and high-limit gold cards on every desk has ended. This is not to say that angel funding has entirely gone away. There will always be “angels in the outfield.” But angel investors have to pull in their own financial bootstraps these days, and well they should. The fewer business failures in today’s marketplace the better for everyone.
Venture Capital Funding: At this level, you have grown your business past the “angel” or “seed” funding stage, and it’s time to go big! Well, at least that is the hope. Getting into this “financial bed” is not for wimps. If you love the hunt and gamble, and you’re not afraid of financial partners taking over your business and personal life, it could be very exciting. But keep in mind, using other people’s money (“OPM”) can be very stressful; not all that glitters is gold. The truth is, you will need to decide if you are a “Main Streeter” or a “Wall Streeter” in your heart of hearts. And only you can answer this question for yourself. You will need to get some very serious advice from financial advisors and attorneys, at this stage of the game. But hey, what a great problem to have! If you find you’re a “Main Streeter” at heart, this will most likely not the the direction for you. If you find you are a “Wall Streeter” you will be in for the roller coaster ride of your life, but this could be some fantastic fun and wealth for you! You won’t know until you get there, so enjoy the journey, wherever it takes you.
Have Your Documentation Ready: If you recall from our first article, we discussed the importance of a business plan. Any investor, and some commercial lenders, will need to view all of your company documentation before investing in your company. They will want to see your proof of earnings, profit-and-loss statements, balance sheets, income statements and myriad of records. So make sure to keep all your records in good condition, and run your books well. This will greatly enhance your chances of getting that seed funding you seek.
Whoever said that business and personal should remain separate was not a business owner! For our breed of human-being, business is always personal. If that ceases to be the case for many of us business diehards, it will be time to move on to something new. Your heart should always be in your business, and your business should be in your heart. When you’re doing something you really enjoy doing – you really love doing, the money will follow. Just be smart about it!
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