Читать книгу Financial Security For Dummies - Eric Tyson - Страница 41

This chapter focuses on personal crises and challenges, so you may be perplexed over why I would be talking here about starting or running your own small business, which many people aspire to do. The reason is quite simple — running a small business has many challenges, both personally and financially. And while I’m an optimistic person, I’m also realistic and know from years of observations that minor small-business problems can mushroom into big problems in short order.

Here are some tips to help get you started and increase your chances for long-term success and minimize the chances for big problems:

 Prepare to ditch your job. To maximize your ability to save money, live as Spartan a lifestyle as you can while you’re employed; you’ll develop thrifty habits that’ll help you weather the reduced income and increased expenditure period that comes with most small-business start-ups. You may also want to consider easing into your small business by working at it part-time in the beginning, with or without cutting back on your normal job.

 Develop a business plan. If you research and think through your business idea, not only will you reduce the likelihood of your business’s failing and increase its success if it thrives, but you’ll also feel more comfortable taking the entrepreneurial plunge. A good business plan describes in detail the business idea, the marketplace you’ll compete in, your marketing plans, and expected revenue and expenses. Small Business Development Centers (http://AmericasSBDC.org), are located in each state with branches statewide to assist with business plans and multiple aspects of small business. They offer great services that are underutilized. And most have highly educated and trained staff. You've already paid for most of their services with your tax dollars. Business plan assistance, marketing, and social media training are offered at no fee. Seminars such as QuickBooks training are the most reasonably priced around.

 Replace your insurance coverage. Before you finally leave your job, get proper insurance. With health insurance, COBRA regulations require many employers to allow you to continue your existing coverage (at your own expense) for at least 18 months. According to the U.S. Department of Labor: “The law generally applies to all group health plans maintained by private-sector employers with 20 or more employees, or by state or local governments … In addition, many states have laws similar to COBRA, including those that apply to health insurers of employers with less than 20 employees (sometimes called mini-COBRA).” You can also shop for health insurance on your own and, depending upon your household income, may qualify for a reduced price (subsidized) policy. With disability insurance, secure coverage before you leave your job, so you have income to qualify for coverage. If you have life insurance through your employer, obtain new individual coverage as soon as you know you’re going to leave your job. (See Chapter 11 for more details on insurance.)

 Stay on top of your income tax obligations. When you run your own business, it’s 100 percent on you to make your income tax payments, which you’re required to do through quarterly estimated tax payments. Equally importantly is to reserve and set aside that tax money so that you have it ready to use when the payments are due. I’ve seen too many small-business owners dig themselves into big financial holes and in the worst cases end up in financial ruin because they failed to plan for and make their quarterly estimated income tax payments.

 Establish a retirement savings plan. After your business starts making a profit, consider establishing a retirement savings plan such as a SEP-IRA. Such plans allow you to shelter up to 20 percent of your business income from federal and state taxation.