Have you ever wanted to be your own boss? Do you see the potential for a new product or service, and you’re wondering if the time is finally right for it? Whether you’ve been carrying a dream of starting a new business for years, or you’re simply ready to try something new, 2024 offers tremendous promise for entrepreneurs with a clear vision and the determination to achieve it.
At Hayes and Associates, we take pride in our role in helping people establish and grow their businesses, so we’ve collected some insights and resources that will guide you as you begin this exciting process. If at any time along the way you have questions about the financial aspects of launching your business, give us a call. We’re here to help.
Why Choose Nebraska?
If you’re searching for the right place to launch your business, Nebraska has much to offer.
- The state consistently ranks among America’s Top 10 States for Business, with operational costs at 8% less than the nation’s average.
- As a right- to- work state, you and your employees have the freedom to choose whether you seek union affiliation or not.
- Grants are available to help launch or expand your business, notably including filmmaking, community growth, and rural rail access.
- Tax credits are available specifically for businesses in renewable chemicals, urban redevelopment, and filmmaking, as well as other sectors.
Are You Prepared for Starting a New Business?
While starting a new business may begin with a great idea and a dream, those who fulfill their entrepreneurial dreams are those who have researched, planned, and launched their business ventures with insight, clear thinking, and a well-formulated plan. Consider these challenges and address them proactively:
- Many new business owners underestimate their startup costs. Plan your budget with plenty of room for contingencies so you’re not left scrambling to make ends meet.
- Expect to spend a significant amount of time, and at times, almost all your time on your business while you are trying to establish and grow it.
- Create a detailed business plan that includes an overview of your company and its structure, an analysis of the market in your area of business, how it will be managed and marketed, funding needs, and profit earning potential.
- Consider ways to create a meaningful experience for your customers throughout their engagement with your business.
- Plan a detailed marketing plan.
Now it’s time to move from the drawing board of a great business idea to putting together the nuts and bolts that will get you open for business.
What Structure Best Suits Your Business?
Businesses can be structured in several ways. Below you’ll find a quick overview of the most common ones.
- Corporation– The business will operate separately from the owners and is established by filing articles of incorporation. Personal financial obligations are limited, and a board of directors oversees the corporation’s operations. Various structural features must be included: sale of stock, official meetings with documented minutes, and election of directors. The corporation, as its own entity, will pay income taxes.
- Limited Liability Company (LLC)- This business model also limits your personal liability but allows profits and losses to be attributed to the company’s owners. The LLC is less structured than a corporation and leaves you free to determine the best approach to management of the company.
- Partnership– Your business will have two or more co-owners. All partners will share personal liability for the business, but you do not pay income tax as a business. Instead, your profits/losses are reported on your personal tax forms.
- Sole Proprietorship– You will operate your business independently, and as you do so, you will personally be responsible for all business transactions, including debts. The state recommends that those who pursue sole proprietorship apply for a trade name.
When it comes to legal and financial obligations, each comes with its unique benefits and obligations, so you’ll do well to consult with an attorney, as well as your CPA at Hayes and Associates before starting a new business. Additionally, in the state of Nebraska, each of these business structures have unique registration requirements.
Be aware that corporate reporting is required by the state in order to remain in good standing. These reports are due either annually or biennially, depending on the type of company you establish, and they have specific deadlines. Failure to comply can result in your company being dissolved, or at least limiting your ability to qualify for loans or conduct business.
What Resources Are Out There to Help You Succeed?
While starting a new business may seem daunting, resources designed with entrepreneurs like you in mind are available in abundance. Avail yourself of these as a great starting point and expand your connections and networks from here.
The University of Nebraska Omaha has compiled an outstanding website of resources to provide new and prospective business owners with inspiration, knowledge, and encouragement on their entrepreneurial journey. Here you can learn from others who have successfully launched an array of businesses, discover networking and educational opportunities and consult with experts.
Nebraska’s Department of Economic Development also provides a list of practical resources, including key contacts, step-by-step directions for establishing your business, and even potential office spaces/ building sites that are currently available.
Might you benefit from the wisdom of professionals who have already traveled the road of entrepreneurship? SCORE offers paired mentorship with other business owners who have created and successfully run their companies in similar niches and geographic regions.
2024 CAN Be Your Year to Start a New Business.
We hope these resources and insights have fueled your excitement and helped to inspire you to make 2024 your year to create a new business. With a great vision, preparation, and hard work, you can most certainly succeed, and Hayes and Associates is here to support and applaud your efforts along the way. Give us a call to schedule a consultation today!
