This links up with a MKFP post not so long discussing integrity. We can all agree to the command “do what’s right!” The 1989 movie penned it as “Do the Right Thing”. Some may think this is reserved only for how we deal with one another when it’s actually a universal concept we can apply to every situation.
How many times have you enlisted the services of some “jack of all trades” and learned that they are unable to provide you with a basic invoice, receipt, timetable for completion of services, a warranty or a guarantee? Family, we can and we should do better.
There are tons of talents and enterprises all over our community yet, basic business practices like invoicing and receipts are not the norm for many of our small businesses and sole proprietors.
I was chatting with an enterprising Princess who is embarking on what is quickly becoming a successful catering business and we are so proud. The Princess already has a name for the business, has created a FB page, printed and distributed business cards and has been taking orders. However, there are some steps she’s skipped that need addressing immediately:
Register your business.
Most entrepreneurs understand the importance of a business name to their branding. New business owners spend sleepless nights brainstorming the perfect name. But after you’ve picked a name, what’s the next step to making sure everything is legal? The most important reason to register your business name is because that’s the law. The other key reason to register a business’ name is to prevent anyone else from using it. After you’ve spent time building your brand, the last thing you want is someone else to come into the market and start using the same or a very similar name. Also, registering your business will provide insulation from lawsuits.
Insure your business.
As a homebased business owner, two types of insurance are needed: liability and property damage. Liability protects against someone getting injured on your premises or by one of your products. Property damage protects against damage to a host of things including appliances supplies. Cover your assets and take steps to protect yourself from losses.
Charge taxes for your products. As a small business this Princess will be able to write off her kitchen, certain appliances, supplies, gas, mileage on her vehicle, and even her actual vehicle. She must save all her receipts for tax time. In addition, she can apply sales tax to her products which she will remit to the state at tax time. If you sell a physical product that would be considered a taxable good in retail, you’re required to collect sales tax from the buyer. Do not think small minded as in, “I don’t want to pay taxes because I need all the money — wrong thinking and you’re bigger than this. Operating “under the radar” does not give you a leg up and will have you missing out on all the money saving deductions that operators of small businesses and sole proprietors enjoy.
We have million and billion dollar ideas in our community and we miss out on establishing and reaping our blessings often because we are hesitant to (or perhaps lazy) do what’s right.
There is a system in place and we can work it in our favor or remain unknown operating in the margins for little return. Imagine if 10 yr old entrepreneur Mikhaila Ulmer (see link below) went the “under the radar” route? The success and investment of her lemonade company would not be manifested.
We must learn to apply “do what’s right” in ALL things. We’ll find a blessing in our endeavors because when you start right, you’ll finish right.
This has been our money kingdom financial perspective.
May I AM THAT I AM GOD prosper you.