You should know that generally speaking I think that starting a small business is a great thing.  After all, this country was founded by entrepreneurs running their own printing presses or stables or whatever, and now only about 2% of Americans have their own businesses.  Most of us think quite wrongly that we have no choice but to work for “the man”, but guess what?  “The man” is just one of us who has already figured it out.

While there are distinct advantages to being a W-2 employee instead of being a 1099 contractor or your own boss, for many people it’s just not the fulfillment or the freedom that they were looking for.

Okay, with that disclaimer out of the way, the answer to the question in the first paragraph might be one of the following:

1. Like in the disclaimer, I just want to be my own boss and be in charge of my own day.   Nobody but me depends on me, so it’s okay for me to get this figured out.
2. I have a family, but neither I nor my spouse/significant other is happy in the corporate world.  So, we’ve agreed that I’m going to take a few years to make it work, and once I’ve made it happen (whatever it is), then he/she can take leave to make a go of it too, either in what I’m doing or in something else they’d prefer.
3. I’m the stay-at-home part of the couple, and the kids (or cats or dogs) are settled down a bit or even grown, and now I’d like to do something I’ve always wanted to do, like sell flowers or carve boats or whatever it is I love.

If your answer is number one, then we need to talk, because it’s very important to do all the critical thinking and due diligence in order to make it work and not have you get burned.  I certainly wouldn’t want to see you soured on the idea when it’s something your soul tells you is right for you.  You need to have the right long-term strategies and the right expectations, and you need to have enough money put aside to dedicate to doing this thing right.

If you’re more like number two, then all the ideas above still apply, but you also have to have the proper plans in place to take care of your loved ones, and you need to have protection in place in case something totally unexpected happens, the protection that you might be giving up by going out on your own.

Then, if you find yourself most like number three, all of the above may still apply, but it’s likely that you have a lot more flexibility in making this work in a particular time frame.  Even in that case, you still want to make sure the business is protected and your family interests are kept separate.

Now, in all cases including those above and any others you might feel are appropriate, you really need to know how two big things can benefit you.  First, how you can turn your efforts into rewards in the tax world, and there are many possibilities for that, and second, how you can benefit and attract employees if you have them, while also benefiting yourself.

Want to know more?  Let’s talk, and create a plan that’s right for you and your family.

John@financialideasblog.com

Technorati Tags: Small Business

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