Understanding the Concept of Business

There are plenty of business model options for the same idea.  For example, let’s say your idea is to offer historic tours of Cape Town.  You could either do it yourself or hire professional guides to do it.  Or you could use mobile technology to provide DIY walking tours.  You could charge per tour or you could charge a membership fee.  There are so many options.  How do you pick the model that works for you? The Lean Canvas is a great tool for entrepreneurs who are faced with this question. Adapted from The Business Model Canvas, it provides a simple, one page framework for brainstorming possible business models, prioritising where to start, and tracking ongoing learning.  It walks the entrepreneur through the business model process logically and ensures the key elements of a successful business are considered. My co-founders and I have used the Canvas extensively at Simply – for designing our business model, and for communicating it to partners and ...

Starting a small business isn’t easy, but can be made less confusing with the right strategy in place for success. Below are a few simple ways you can properly plan for the growth of your business and avoid common issues that might arise with ineffective strategizing. Building business strategy Be Organized Begin strategizing for your small business by first getting organized, whether that be with your physical space and office setting or simply with the way you function throughout the day. A great way to start is by creating a daily list that you can look to for any necessities that you need to get done throughout the day. Your business won’t run itself so all the small, mundane tasks need to be taken care of as you prepare for success. Do What You Love You can’t really build a business that succeeds without creating a strategy that focuses on what you love to do. No matter the industry, there needs to be a certain level of passion that goes into whatever you are creating that will tr...

  Individual Retirement Arrangements (IRAs) Roth IRAs 401(k) Plans 403(b) Plans SIMPLE IRA Plans  (Savings Incentive Match Plans for Employees) SEP Plans  (Simplified Employee Pension) SARSEP Plans  (Salary Reduction Simplified Employee Pension) Payroll Deduction IRAs Profit-Sharing Plans Defined Benefit Plans Money Purchase Plans Employee Stock Ownership Plans (ESOPs) Governmental Plans 457 Plans Help with Choosing a Retirement Plan

  The checklist below provides the basic steps you should follow to start a business. This list should not be construed as all-inclusive. Other steps may be appropriate for your specific type of business. Information about specific industries can be found at the  Industries/Professions Web page . Each state has additional requirements for starting and operating a business. For information regarding state-level requirements for starting a business, please refer to  your state's website . Refer also to the Small Business Administration's  10 Steps to start your business . Apply for an Employer Identification Number (EIN) if applicable Select a business structure Choose a tax year If you have employees have them fill out  Form I-9  PDF  (PDF) and  Form W-4 Pay your business taxes

  You must figure your taxable income on the basis of a tax year. A “tax year” is an annual accounting period for keeping records and reporting income and expenses. An annual accounting period does not include a short tax year. The tax years you can use are: Calendar year  - 12 consecutive months beginning January 1 and ending December 31. Fiscal year  - 12 consecutive months ending on the last day of any month except December. A 52-53-week tax year is a fiscal tax year that varies from 52 to 53 weeks but does not have to end on the last day of a month. Unless you have a required tax year, you adopt a tax year by filing your first income tax return using that tax year. A required tax year is a tax year required under the Internal Revenue Code and the Income Tax Regulations. You have not adopted a tax year if you merely did any of the following. Filed an application for an extension of time to file an income tax return. Filed an application for an employer identificat...

  Why should I keep records? Good records will help you monitor the progress of your business, prepare your financial statements, identify sources of income, keep track of deductible expenses, keep track of your basis in property, prepare your tax returns, and support items reported on your tax returns. What kinds of records should I keep? You may choose any recordkeeping system suited to your business that clearly shows your income and expenses. Except in a few cases, the law does not require any special kind of records. However, the business you are in affects the type of records you need to keep for federal tax purposes. How long should I keep records? The length of time you should keep a document depends on the action, expense, or event the document records. You must keep your records as long as needed to prove the income or deductions on a tax return. How should I record my business transactions? Purchases, sales, payroll, and other transactions you have in your business gener...

The form of business you operate determines what taxes you must pay and how you pay them. The following are the five general types of business taxes. Income Tax Estimated Taxes Self-Employment Tax Employment Taxes Excise Tax Income Tax All businesses except partnerships must file an annual income tax return. Partnerships file an information return. The form you use depends on how your business is organized. Refer to  Business Structures  to find out which returns you must file based on the business entity established. The federal income tax is a pay-as-you-go tax. You must pay the tax as you earn or receive income during the year. An employee usually has income tax withheld from his or her pay. If you do not pay your tax through withholding, or do not pay enough tax that way, you might have to pay estimated tax. If you are not required to make estimated tax payments, you may pay any tax due when you file your return. For additional information ref...

An Employer Identification Number (EIN) is also known as a Federal Tax Identification Number, and is used to identify a business entity. Generally, businesses need an EIN. You may apply for an EIN in various ways, and now you may  apply online .  This is a free service offered by the Internal Revenue Service and you can get your EIN immediately . You must check with  your state  to make sure you need a state number or charter.

  When beginning a business, you must decide what form of business entity to establish. Your form of business determines which income tax return form you have to file. The most common forms of business are the sole proprietorship, partnership, corporation, and S corporation. A Limited Liability Company (LLC) is a business structure allowed by state statute. Legal and tax considerations enter into selecting a business structure. Sole Proprietorships Partnerships Corporations S Corporations Limited Liability Company (LLC)  

Millions of people enjoy hobbies that are also a source of income. From catering to cupcake baking, crafting homemade jewelry to glass blowing -- no matter what a person’s passion, the Internal Revenue Service offers some tips on hobbies. Taxpayers must report on their tax return the income earned from hobbies. The rules for how to report the income and expenses depend on whether the activity is a hobby or a business. There are special rules and limits for deductions taxpayers can claim for hobbies. Here are five tax tips to consider: Is it a Business or a Hobby?   A key feature of a business is that people do it to make a profit. People engage in a hobby for sport or recreation, not to make a profit. Consider  nine factors  when determining whether an activity is a hobby. Make sure to base the determination on all the facts and circumstances. For more about ‘not-for-profit’ rules, see  Publication 535 , Business Expenses.   Allowable Hobby Deductions . ...

Step 1. Brainstorming  Decide what kind of business you will like to start in create. Step 2.  Get Technical   Create a Google my Business account  Start an Facebook business Account Page  Step 3. Get Registered  Go to irs.gov Apply for a free E.I.N. Number Once you obtain that number File for a business license with the Secretary of State to establish your business license.  Step 4. Get Banking  Once you obtain your E.I.N. number and file for a business license go open up a business checking & credit account. Step 5. Get branded  Invest into Logos Business cards Etc.. Step 6. Launch your buainess