Small business is more than just operations; it includes taxes and licensing, and financing as well as much, much more. More commonly, small businesses are found all over Hawaii and new businesses pop up quite often. It takes more than just an idea to get a business going, here are a few main parts of starting a small business:
Size - According to the Small Business Administration, size standards are based from the North American Industry Classification System (NAICS). This NAICS has codes define establishments on the activity each primarily is involved in. In addition, codes are used for administrative, contracting and tax purposes.
Most commonly, small businesses tend to include less than 500 employees and receive an average of $7 million in receipts annually. However, these numbers could differ depending on the activity of the business.
Training - Here in Hawaii, there are opportunities to begin a small business, like webinars available on the Small Business Administration website http://www.sba.gov or events put on by other organizations, such as Chaminade University, who has a Small Business Fair on October 12, 2013.
Licenses - Just like any other, small businesses need to attain a general excise tax license and a federal employers identification number (FEIN). Keep in mind that these may take several weeks for approval. Be on the lookout for trade names and consider registering a trade name(s) for the business.
Plan - Most importantly, have a business plan. It is vital to have a business plan for direction and research necessary for a successful business. The Small Business Administration as well as many other sites have useful tools to assist in this process.
Funding - Finally, funding the start of a small business can be overwhelming. There are grants available that could potentially assist with some funding. Another option is to find investors who are all for the creative business that is about to begin.
No matter the size of the small business, these main parts must be determined and in the process of getting completed before a small business opens its doors for consumers.
