4 Surprises Commonly Faced by New Entrepreneurs
One of my favorite parts of working for NYC Business Solutions is seeing people take a risk and launch a business. It is exciting, exhilarating, and scary all at the same time – a bit like a roller coaster ride.
During the launch, a lot happens really fast. Once you choose and establish your business structure, there is still a lot to do before you can actually conduct business –While some decisions are minor and inconsequential, many choices will have long-term consequences.
Below are four common questions and surprises that new small business owners typically face.
1. Who should I open my business bank account with?
Choosing where to place your money is important. The bank and banker that you choose should have your best interests in mind. Your banker is a critical part of your team. In addition to traditional banking responsibilities, the banker has a network of trusted professionals to refer you for various needs. Take the following factors into account before choosing a bank:
What are the bank’s criteria for lending? Does your personal credit history fit the criteria?
Does the location make sense?
Do you know and trust the Business Banker? Were they referred to you?
What is your personal history with the bank?
What type of financial products does the bank offer?
Is the bank a SBA Preferred Lender?
Does the bank utilize technology effectively?
Does the bank have a reputation for hidden fees and costs?
Is the bank friendly to my particular industry?
2. I want to keep costs as low as possible. Do I really need to hire professionals to help with the business or can I do everything myself?
Small business owners will need to wear many hats, especially in the first year. The owner should not try to put on every possible hat. Pick and choose what you can and cannot do reasonably quickly and well. You might be able to save yourself a couple of hundred dollars by building your own website from scratch. The downside of the savings is if it does not turn out well. A bad website might be a turnoff to potential customers and lose you potential revenue. The cost of the time to learn the basics of web design and building a web page could have been used to do something else for the business.
3. What other licenses and permits do I need besides registering the business to begin selling my products or services?
Registering your business is just the first step in the process. NYC Business Express is a one-stop website that makes starting, operating, and expanding a business in New York City clearer, faster, and simpler. NYC Business Express offers business owners and entrepreneurs the information they need to open and operate a business as well as the opportunity to apply for permits, licenses and certifications and to check violation statuses online.
4. I just formed a business structure with the New York State Department of State. Why am I getting so much mail and so many phone calls?
When you form a corporation or LLC with New York State, the information of the entity is publicly available on the internet. Anyone can access the state’s database. Private companies including banks, insurance agents, accountants and other professionals will reach out to you to try to do business. Be prepared to be flooded with letters and voicemails.
Brad Seader is the Director of the in Queens. If you have a question or comment for Brad, drop him a note below. And, please share his blog entry with your colleagues on Facebook and Twitter.