Starting your own business is not going to be trouble-free. Many challenges will come your way if you are not prepared with solid plans and clear goals for your growing career. You have to research the industry and study the competition, acknowledge the potential risks and failures, and organize your finances before starting a new business. As a new business owner, you might still be learning these basics and collecting information to help you with your business obstacles. In this article, we shed light on four of the major challenges that can face you while starting your own business; keep reading to find out what they are and how you can avoid them.
1. Acknowledging Taxes
Before moving forward with a business plan, certain calculations along with some planning for business risks need to be done. One of these risks is being prosecuted due to not paying taxes or paying them late. A successful business will be organized with how they handle taxes and fees. Handling taxes takes a lot of filing of documents and papers to prove your payments, and filing any of these payments late can put your business at risk. To make your tax payments on time, you need to figure out how much your payroll is going to be and learn about other business taxes stated by your state, county, and city.
If it’s been detected that you have made a mistake in your tax return, chances are you’re going to need to pay a fine, which is not how you want to start your own business. The fine’s purpose, in that case, would be to teach you to pay your taxes in time and return your tax files correctly. However, if you are criminally charged for tax fraudulence, you will need an experienced tax attorney to help you with your case in court. This is why it is important to understand when you should pay your business taxes, to whom, and how to pay them correctly.
2. Choose A legal Structure
One of the initial proceedings of building a business is selecting its legal structure to determine its taxation, initiate its paperwork, and identify the liability of its owners in legal matters. This is an essential step required to earn the local and state registration and decide whether the organization can hire employees or not. As an entrepreneur, you need to assemble the articles of incorporation and acquire an employer number for identification. When you choose your business structure, you will then need to apply for the required licenses depending on your state and industry, especially in states booming with startups like Virginia. In fact, creating an LLC in Virginia doesn’t have to be complicated and can be done in 5 simple steps. Those would be naming your LLC business, assigning a registered agent in the state, filing the articles of organization, obtaining the operating agreement, and applying for an EIN. You can always consult a legal expert on choosing the right business structure and filing the right paperwork.
3. Don’t Work Alone
As simple as this sounds, you might think that you can do everything as a business starter and entrepreneur, but this is not true. There are multiple areas in a business that people experienced in those specific fields need to manage. Your business will call for professionals from IT, sales, marketing, accounting, and many other fields. No matter how successful you are, your organization will need experts who can secure its digital presence, run sales and increase revenue, and even handle its finances and funding along with you. You need to prioritize your business needs and acknowledge your skills and weaknesses to save time and look for others who can work under your brand and handle these fields for you.
4. Funding Your Business
One of the first hurdles in your way when starting a business is finding out how you will fund this business. You just need enough credit to keep the business going for the long run, not necessarily a big investment, though. Most people would go for business loans or credit lines; however, you can also raise capital or fund your own business with your personal credit. Deciding how your business will be funded before proceeding with any business plans will help you create a reasonable plan that can be achieved and led to success.
Starting your own business will not be easy, in fact, it’s one of the most difficult steps you will take in your life, but once successful, all the effort and time invested will be worth it. The key to starting a successful business is being prepared for the major challenges that are going to slow you down while establishing your brand and building a name. You have to accept that every business faces difficulties initially and that the best way to deal with them is by creating an initial business plan that decides your business actions.