Monday, May 02, 2016

Owning Your Own Business

It always seems so attractive...to be your own boss...to not answer to anyone but your customers.  But is starting a small business all it's cracked up to be?

Skill Set Required

Having been an independent contractor for a few years, I took the advice of my peers and set up what's known as an S-Corporation.  The client I was contracted with, required that I had my own business set up, and given the options for organizations, S-Corp was the best option for me.

I had no idea how much work was required outside the standard work that I was required to do as a contractor.

So, in addition to my skills as a systems consultant, I was required to understand:
  • Basic business accounting
    • Tracking receipts
    • Knowing which expenses needing to be tracked
  • Billing/Accounts Receivables
  • Payroll
    • Calculating withholding for Federal, State, local, Social Security, Medicare, Unemployment and State Disability taxes (yes, all of them)
    • W-2 processing (yes, you have to issue your own W-2)
  • Tax Accounting - this was for me, by far the most daunting task that I completely underestimated
  • Insurance needs
    • Errors & Omissions Coverage
    • Workers Compensation 
  • Legal understanding of contracts and statements of work
  • Contract/Fees Negotiations
  • Marketing
  • Customer Relations
Don't get me wrong...some of these skills can be purchased (and should be, in my humble opinion).  But government certainly doesn't make it easy to start a small business.

Current Knitting

The Niece Blanket is progressing, and I"m hopeful I'll have it done in time to show it off at the Men's Knitting Retreat in a couple of weeks.


So far, I've completed almost 50 inches in length and will probably do another 10 inches.  So completion is fully possible.

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