How to start a business?

[mikeandronda]

OK here is the deal our (The wife and I) Ministry is have a huge paintball outreach event in may. We have a whole gaggle of teens that want to go and cant afford it. Well a whole lot of people sponsored a bunch of them and I found some paintball markers dirt cheap. I purchased 10 set ups. Then hit a snag money wise so I decided to sell some of the guns......They went like mad and doubled my money. So of course that got the wheels turning and I was wondering if anybody here knows what it would take for me to be able to buy Wholesale and either sell on ebay or from a website? I know if I sell to people here in my state they have to pay sales tax. I have a meeting with an accountant Fri but I may have to reschedual due to a meeting for the Event. I understand this will not be a huge boon or that I will not make a fortune but I am hoping I can supliment my families income....... Im out of guns and Im still getting emails for them. Any ideas or info would be very much appriecaited.

 

[snapperbait]

Re: How to start a business?

From past experience, most sporting goods type wholesalers and manufactureres require you to buy certain quantities of a product.. A case, or gross, ect...

And... before they will sell to you, many are going to want to see a copy of your city/county business license..

 

[roscoe]

Re: How to start a business?

Pretty simple to do as a small home based business.

Here in WI, I'm assuming its similar in MO, you apply for a tax id number or business id number.
Here it is $25.
With this number in hand, you can buy whole and tax free.
You can do all this with a federal id number, but you still need to have the state number and fill out the sales tax form.

Easiest to open a separate checking account, so you have all the income and expenses in one account.
Keep track of your in state taxable sales, and those that are out of state.

You will likely have to file a quarterly sales/use tax form, and include a check for the sales tax collected for that quarter.
It takes 10-15 minutes to fill out the first few times.

Keep track of your expenses, a notebook is sufficient.
Probably not worth the hassle to keep track of pens and paper, but all your packaging and shipping expenses will be deductible.

At the end of the year, summarize all the expenses, income, inventory on hand, and give it to the accountant to prepare your taxes.
My tax man charges me $20 to add a small business to the tax preparation.

So, for $50 and a few hundred in working capitol, you are in business.

Is your Ministry an NPO?
I hope it has insurance if you are gonna give teenage boy paintball guns.

Nice to hear from you Mike. Good Luck.

 

[mikeandronda]

Re: How to start a business?

No its not NPO We have been working under the wing a church but we are now moving away from that. The ministry in its self is setting up, promoting,running events that draw in people of all walks of life, such as paintball concerts ect...ect...ect.... For this event we are partnered with CPPA Christian paintball players association and Woodland warriors Scenario productions. The ministry would be separate from the bussiness. The isurance I have is supposed to cover any of mt bussiness in my home to my understanding as I rent and my landlord asked that I get insured to work out of his house(I teach guitar almost full time) I will have to look at my policy but I think I remember it says any bussness dealings in my home.....mind I have been wrong before so ?

Snapperbait I do have some connections that have blosumed through this event and I have a "freinds" I have made because of it. Long and the short of it is Im not worried about making a fortune but hopfully it halp pay for all my big boy toys...........Now here come the sad part I will selling my boat to come up with seed money

 

[QC]

Re: How to start a business?

Now here come the sad part I will selling my boat to come up with seed money

Go for it. I've thought similarly. The bad news is the wife won't let me. The good news is, the wife won't let me . . .

 

[Kiwi Phil]

Re: How to start a business?

I have been in business for over 30 ys, and started new ones probably 3 times.
Roscoes advice is spot on, plus your accountant is the 1st call you make. He should be able to give you all the info you require.(Paperwork. Legal. Trade Assns. Business Advice Centres etc etc)
If you can run a business with a product you have a 'fixation' type interest in (probably the wrong word) then you will probably find you are 70% of the way to sucess.
It will never be boring; you well never watch the clock; you will be totally engrossed in your business.
Home-based is brilliant. It cuts the outgoings (rent/rates/insurance/commercial phones etc etc) completely OUT.
Next bit of advice, try not to borrow to buy stock at the start. In other words start small. Feel your way. Think with your brain and not your ego.
Re wholesalers; find them/visit them/get their stock lists. They are just like you, they want to sell their product. There must be a Trade Assn in your area that represents sellers of the products you want to buy. There are probably Trade Fairs in your area. Find out; get on the list; attend (if you can't make it during the day, ask what nights they are running).
Always work out 'what is in it for you'. The margins MUST be there, (because the costs are).
My wife will say "oh!, that looks nice. Should we try some".
I am the one who works out what my selling price is, then say to her "can you get $xx for them"?

It is not easy, but if you use your brains and commonsence it is not hard either.
The rewards can be sizable too.....nothing like wages.
Good luck.
Cheers
Phillip

 

[dolluper]

Re: How to start a business?

If you could find a supply "R" that drop ships even better for you as long as their stock is large.....

 

[mikeandronda]

Re: How to start a business?

Thanx guys, all sound advise....Kiwi, did you mean fixation as in how much interest I have in the product other people. If so I think this is one those things..........For me and others. I will be meeting with an Accountant this week. Like anything else in life this will be a bit of a gamble ( But one that wont sink us if it fails) I can still keep giving lessons until and if this thing takes off.

 

[Docknocker]

Re: How to start a business?

Being self employed for over 15 years I say absolutely go for it. Start out with the bare necessities only, risk only what you can live without if you loose it, keep your day job, pay as you go, plow everything back into the business. Once you get it rolling, it will start to grow itself, but guide it wisely, carefully, and cheaply. It won't happen overnight, but if you're astute, it will happen.
Being your own boss isn't easy, but it's not that hard either - just keep your eye on the goal.
It's alittle scary in the beginning, but there's nothing better than making your own way. DO IT !

 

[stevieray]

Re: How to start a business?

One other advantage is, if you manage it right & have a pretty good second source of income, you can operate at a loss (reported expenses greater than reported income) and even save on income taxes. 100% legal - ask your bean-counter.

 

[mikeandronda]

Re: How to start a business?

Well I teach guitar out of my home allready. I make a fair amount of money doing this. The wife has great paying job so the risk will only be all the "EXTRA" money I can round up.........I have to be honest I put a free ad about my boat and I got a ton of emails asking to come see it......Im thinking I should asked for more. Oh and as I was cleaning it up today I was more than a little sad. If it wasnt for that boat I wouldnt have ever found iboats.

 

[Kiwi Phil]

Re: How to start a business?

By fixation, I mean you are completely absorbed in it, as in when you have a hobby you love.....you are totally commited......
Docknocker is from the same stable as me..... real good advice.
Good luck
Cheers
Phillip

 

[technostingray]

Re: How to start a business?

By fixation, I mean you are completely absorbed in it, as in when you have a hobby you love.....you are totally commited......
Docknocker is from the same stable as me..... real good advice.
Good luck
Cheers
Phillip

[whisper user=kiwi phil What? Now even the whispers are being zapped.][/whisper]