Starting a Business in Houston-Galveston Part 2

Now it’s time for the final installment in learning how to start a business. Last time you gained knowledge on how to choose the right business, write a business plan, and finance your business utilizing the Business Owners Retirement Savings Account plan. Here, gain tips on establishing your company's structure, marketing, and exit strategy:

Step 4: Determining Your Business Organization
Defining your company in terms of type is very important, because the form in which you conduct your business determines how it will be taxed. Below are some of the various types of business organizations from which you should choose to describe your organization:

• Sole Proprietorship: Owned and operated by one person, a sole proprietorship is taxed on a quarterly basis based on estimated annual income.

• Partnerships: A partnership is where two or more people share in ownership of a company. Each partner’s share of profits is included in their individual income tax return.

• Corporation: Viewed as a separate legal entity apart from its owners, a corporation must also file for estimated taxes.

There are two different classifications of corporations, the C-Corp and the S-Corp; and each has its own unique tax status. The best option for you often depends on the goals you have for your company.

Step 5: Marketing
How can you start a business without attracting customers? Marketing and advertising play a vital role in achieving a successful business. There are several factors to take into consideration when planning a marketing strategy.

• Name: To promote your company, you first need to come up with a suitable name. A simple name that clarifies what your business actually does is a great place to start. 
  

• Products/Services: The lifeblood of your company depends on what you are trying to sell, whether it is an item or a service of some sort. You need to determine adequate pricing guidelines that reflect current market rates, but are also competitive with similar industries.

• Target Market: You must identify your target market to effectively engage customers. What is the need you are trying to satisfy? There is a lot of research involved when trying to determine what sort of customers you are aiming for, but it is worth the extra effort.

Step 6: Have an Exit Strategy
When planning a business, how you exit is just as important as how you start. Going out of business is a lengthy, multi-step process. The ultimate objective is to amplify the value of your company and convert it to cash, while minimizing the amount of time consumed closing up shop. Professionals at practices such as DRDA Certified Public Accounting firm in Houston can offer expert assistance to make the transition as smooth as possible.

Now that the fundamental steps to building a business have been covered, you should feel confident and ready to begin. However, if you need advice, or would like to discover how the BORSA plan can help with start-up capital, contact the DRDA/CPAs business consultants at 281-954-6023. or visit www.drdacpa.com.