How to Start a New Michigan Business in 2014

A vast majority of successful business owners start with just an idea. It’s usually an idea to provide people with something they would need or want, usually because he or she needed that same product or service at some point, but could not get it. However, as the saying goes, success is 1% inspiration and 99% perspiration.

Having a great business idea and actually executing it are two very different things. Small businesses are popping up in record numbers across the state and the entire country, but are failing in record numbers as well. According to Bloomberg, a staggering 80% of these fail within the first 18 months. Why? Research compiled from Entrepreneur Weekly, the Small Business Development Center (SBDC), Bradley University, and the University of Tennessee named “incompetence” as the top reason for failure. Specific items under “incompetence” include “lack of planning”, “no knowledge of financing,” and “no reason in record-keeping.”

Lack of Planning

This includes mistakes in how the business is set up in the first place. Say, some guy gets a great business idea of setting up a burger joint at a location that has many burger lovers. However, it was somehow missed by all the major fast food chains and is two hours away from the nearest one. He sets his business up in the simplest manner – single proprietorship. Somehow though, a particularly sensitive customer gets food poisoning from some fry cook who mishandles the food. The said customer could sue the owner for all he’s worth – which means everything he put in the business, plus his house, his car, his lawnmower, his cat, etc. If he had set up a corporation instead, it would be treated as a separate entity from the actual person, and liabilities would be limited to only what the corporation actually owns, such as a couple of fryers and a cash register. His house and other personal possessions would have been protected from the lawsuit.

No Knowledge of Financing

Here’s another well-known saying: “Nothing is certain but death and taxes.” In the utter quagmire that is tax law, getting professional advice from a CPA can end up saving you thousands of dollars per year. Skip this part and try to do everything yourself, and you could get your business needlessly taxed to death. Even worse, you could be found guilty of tax fraud (whether intentional or not) and get sent to prison.

No Reason in Record-Keeping

It can be amazing how much money you can bleed out without knowing it when you keep incomplete records. The capital meant to last you five years could easily be wiped out in the first six months. Plus, without keeping track of every single movement of numbers in your business, you could find yourself unknowingly paying much more in taxes than you are actually required to, or underpaying and faced with a stiff fine.
This ingredient is also known as a serotonin and norepinephrine viagra prescription re-uptake inhibitor (SNRI) that helps to delay ejaculation during intercourse. The risk levitra generika of erectile dysfunction increases with the age. It will help in regaining the confident and get rid of ED so that you online cialis soft enjoy a healthy sex life. But, there are personalities buy sildenafil uk who are still unaware with this medicine.
 

How Can a CPA Help Me Start My Business?

Even if you only have that one great business idea, we can help you execute it properly to give you the best chance at financial success.

Our business services include helping you figure out how much capital you need. Many small business owners think all the capital they need is just enough to open for the first day, and then sales will cover the rest based on some fancy computation of projected sales per day. Little do they know that this ideal projection of sales almost always won’t come until at least two years down the road, more likely five years. In the meantime, you need that capital to keep you going until enough people find out about your business to get you to breakeven.

We also offer tax preparation services. It is often a nasty surprise for business owners and regular employees alike when they’ve been spending their “excess” money per month – that is, anything left over after paying the monthly expenses – and then finding out at tax season that they need to pay 35% of everything they made the past year.

Get an Expert You Can Trust

Khaled Hazzouri has over 16 years expertise in helping small businesses get their company vision realized with the minimum fuss, confusion, and risk. Hazzouri Accounting is based in Canton, MI and is committed to being a proactive member of the local community and forming lasting relationships with clients. Contact us today and we will guide you through everything you need in starting a business in Michigan.

Stop by our website to learn more or come visit us on-line: Facebook fan page / Twitter Feed / Google+ Account