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Starting a Business


  • Submitted on 06 March 2012

    Cash and PenCASH VS. ACCRUAL

    Every business taxpayer is required to have an accounting method to report income and expenses. The two most commonly used methods are cash and accrual. Once you choose your accounting method, you must follow it consistently. Generally, you may not change your method of accounting unless you obtain permission from the IRS.

    CASH METHOD

    Due to its simplicity, the cash method is a popular choice for small businesses. To determine gross income, add up the cash, checks, and fair market value of property and services you receive during the year.

    If you receive a check on December 28, 2011, but decide not to cash or deposit it until after December 31, 2011, you must still count the check as income in the year you received it.

    Business expenses are usually deducted in the year they are paid. For example, you order office supplies in October 2011 and they arrive in December 2011. You send a check to pay for them in January 2012. Under the cash method, you should claim that business expense deduction on your 2012 tax return because that is the year you paid for the supplies. Certain businesses cannot use the cash method. In addition, special rules apply for the accounting of inventory.

  • Submitted on 08 February 2012

    STARTUP America Policy ChallengeThe White House announced $2 billion in public and private resources to help entrepreneurs start and grow their businesses. In the spirit of open and participatory government, we also announced the Startup America Policy Challenge. We're calling on entrepreneurs and the broader public to share their ideas on how to accelerate entrepreneurial innovation in the areas of  healthcare, energy and education. Aneesh Chopra, US Chief Technology Officer, kicked off the challenge in a post on Quora and asked a few questions to get the dialogue going.

    Read Aneesh's post below and participate in the challenge by sharing your ideas on Quora

    Startup America is President Obama’s initiative to celebrate, promote, and inspire high-growth entrepreneurship throughout the nation.  We’re working to expand access to private sector capital, accelerate the time it takes to get technologies from lab-to-market, and promote mentorship and entrepreneurship education.

  • Submitted on 01 February 2012

    Marketing StrategyWith so many different companies out there today, having a solid marketing strategy is 100% essential.  Without an effective small business marketing strategy, your company will not be capable of bringing in new business. Why? No one will know your business exists!  If you have not yet created a marketing strategy, take the step to create a marketing plan today!

     

     

    What will a marketing plan do for your business?

    1. Build awareness of your business.This will help more people know about your company and the services it provides.

  • Submitted on 25 January 2012

    BusinessHow your company should be structured is one of the first decisions you will have to make as a business owner? This decision is important, because the type of business you create determines the types of applications you’ll need to submit. You should also research liability implications for personal investments you make into your business, as well as the taxes you will need to pay.

  • Submitted on 09 January 2012

    Business LoansIf you’re starting a business that requires significant financial investment up front, finding a source of funding can be a challenge, especially since the average cost of starting a business is $30,000. This is particularly true for young entrepreneurs who lack a strong credit history or don’t want the hassle of dealing with banks or private lenders.

    Once these startup entrepreneurs are done considering their options, it’s not unusual for them to ask friends or family for startup cash. After all, unlike private investors or banks, these people know and trust you. It’s possible they can get you quicker access to cash with fewer flaming hoops to jump through.  On the flipside, if your business fails or you are tardy in repaying the money, you may be headed for some conflict with the aforementioned family and friends.

  • Submitted on 09 January 2012

    Native American entrepreneurs have a new tool to help determine if they’re ready for business ownership and to help them get started.  Native American Small Business Primer: Strategies for Success is a free, self-paced online business course developed for Native American business owners.  The course provides an overview of basic business principles and  makes them aware of the programs and services available from the U.S. Small Business Administration.

    “Native American Small Business Primer: Strategies for Success will enhance the agency’s effort to provide important resources for emerging Native American entrepreneurs,” said SBA Administrator Karen Mills.  “Our ultimate goal is to help create jobs and stimulate economic and business development in our Native American communities. This course is an essential business development tool for the entrepreneur’s toolbox.”

    The new online course: emphasizes business planning and market research as essential steps to take before going into business; informs Native American entrepreneurs about the legal aspects of starting a business, including the type of ownership (legal structure) and licensing; and provides key information on seed money for starting up, raising capital, and borrowing money.  In addition, there is a section on how to estimate business start-up costs that can help assess the financial needs of going into business.

  • Submitted on 04 January 2012

    Record KeepingEveryone in business must keep records.  Keeping good records is very important to your business.  Good records will help you do the following:

    • Monitor the progress of your business
    • Prepare your financial statements
    • Identify source of receipts
    • Keep track of deductible expenses
    • Prepare your tax returns
    • Support items reported on tax returns

    Monitor the progress of your business

    You need good records to monitor the progress of your business. Records can show whether your business is improving, which items are selling, or what changes you need to make.  Good records can increase the likelihood of business success.

  • Submitted on 06 December 2011

    Employee Rights Under the NLRA PosterAs of January 31, 2012, most private sector employers are required to post a notice advising employees of their rights under the National Labor Relations Act (NLRA). The notice should be posted in a conspicuous place, where other notifications of workplace rights and employer rules and policies are posted. Employers also should publish a link to the notice on an internal or external website if other personnel policies or workplace notices are posted there.

    For further information about the posting, including a detailed discussion of which employers are covered by the NLRA, and what to do if a substantial share of the workplace speaks a language other than English, please see the National Labor Relations Board Frequently Asked Questions. For additional languages visit the National Labor Relations Board website.

    You may download and print the notice using the links below. You may also fill out this form or call 202-273-0064 and copies will be mailed free of charge.

  • Submitted on 25 November 2011

    Dollars and CalculatorsHow much does it cost to start your own business?

    Of course, the answer depends on your business model and your chosen industry. However, a useful estimate based on a 2009 study conducted by the Ewing Marion Kauffman Foundation  puts the average cost of starting a new business from scratch at just over $30,000.

    Many small businesses, particularly freelance, online and home-based businesses come in a lot lower than this, often needing only a few thousand to get started.

    But averages aside, what can you do to calculate your specific startup costs? Read on.

    Understand the Types of Costs a Startup Will Incur

    Before you do any estimating it’s important to understand how startup costs are categorized. All startup costs (meaning the period before you start generating income) include two kinds of spending: expenses and assets.

  • Submitted on 18 November 2011

    Apps for EntrepreneursUpdated on December 20, 2011 - SBA Names Winners in Small Business Mobile Apps Challenge

    For most entrepreneurs and small businesses, the Federal government has useful programs and services, but it can be hard to identify, engage and navigate Federal websites.  Often, small businesses do not know that the Federal government already offers a program that they would find useful.  Entrepreneurs and small businesses need better tools to navigate the Federal government’s vast resources – including programs, services, and procurement opportunities.  The goal of the Apps for Entrepreneurs is to give small businesses and entrepreneurs those better tools through this challenge format.

    How to Enter

    To enter, participants should develop an innovative application designed for the Web, a personal computer, a mobile handheld device, console, or any platform broadly accessible on the open internet that utilizes data which is freely available on Federal government websites.

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