According to statistics cited by Inc. magazine, 63% of people in their 20s dream of starting a business. This statistic likely holds steady amongst every other age group, too, and it’s easy to see why. Who wouldn’t want to make their own schedule, direct their future, and advance their skills? There’s a reason why only a portion of those who dream of starting a business actually do so, though. It’s a difficult process, and the risk is too great for many would-be entrepreneurs. Still, if you’re ready to break the mold, you can benefit from an understanding of the best startup business model. Read on for some pointers from Let’s CEO.
Benefits of Different Business Types
One of the most common business types for startups is the limited liability company (LLC). This type of company is designed to shield business owners and their assets from any business-related liabilities. An LLC does this by establishing a business that’s separate from its owner. This separation minimizes the owner’s personal risk.
Starting an S corp is another popular option for entrepreneurs. Business owners who file this way see significant self-employment tax savings when they file with the IRS every year. As a bonus, this structure allows you to claim tax deductions when your business has losses, and larger S corps also enjoy the option of pass-through taxation.
If you’re a solopreneur, you could also consider a sole proprietorship. This kind of business structure allows an owner to quickly and easily establish their business, and it’s typically simple to manage tax liability, too. Disadvantages include difficulty selling the business, and you could also be held personally responsible for business liabilities.
Finally, some startups opt for incorporation. Like an LLC, a corporation shields owners from personal liability, and it also typically offers easier access to capital. This is a major advantage if you have plans to expand your business, and it also offers some attractive tax breaks that can help your business achieve higher profits.
Other Steps to Jumpstart a Startup
When you’re starting your own business, choosing the best startup business model is just one part of the equation. LivePlan notes that you’ll need to develop a strategy, too, based on your own skills and experience. To do this, you should start asking yourself key questions: what strengths have you developed throughout your career? What tasks are you most confident doing?
In addition to an assessment of your own skills, you must assess the demand for the product or service you want to offer. You can do so by conducting market research, surveying friends and family, and even gathering data from social media. Understanding market demand will help you ensure your company launch is a success.
If you aren’t sure what type of business is right for you, another way you can move your entrepreneurial dreams forward is by going back to school for an MBA degree where you can learn about finance, management, leadership, and more. Fortunately, online degree programs make it easy to achieve your diploma while still working full-time or tending to family obligations.
You should also realistically assess the time and resources you have available. Many people realize that starting an entire company isn’t feasible with a full-time job or family obligations. There are other ways to pursue your passions, though, including going back to school. An online master’s degree program can offer an accredited degree and affordable tuition that can help you chase entrepreneurship.
Explore Entrepreneurship in Every Form
Everybody wants to be an entrepreneur, but only a few will successfully launch a startup. You can become one of these few if you devote your time and energy to a new business. In order to succeed, though, you must choose the right startup business model and assess your professional skill set. If it’s not the right time to dive into a new business, you can still invest in your dreams by enrolling in an online master’s degree program. Find an accredited program that aligns with your goals and allows the flexibility you need to maintain the rest of your life.
Article by:
Cherie McLaughlin
In search of an online resource that helps aspiring entrepreneurs, freelancers, and startups grow their businesses? Let’s CEO engages in comprehensive research and in-depth analysis to assist you to discover your ideas and bring them to life- startup business model. Contact us today to learn more!