Grob1o61's Blog

December 10, 2009

Start a small business in Wisconsin.

Filed under: Uncategorized — grob1o61 @ 1:26 pm

Verwelkom naar Sneeuwstorm Alice kinderen. Papa DonderVogel is back with a short outline of starting a small business in Wisconsin.  7:29am Jullie.

     Step 1  Think of an idea. You probably have already done this. Most people have at least had a daydream of owning their own small business, what’s yours?

     Step 2     Form a business plan. You need to plan how you will open your business, how you will market your business, who you will market to, whether there is a market for your business, and any other conceivable aspect to operating your small business. This is the most important step. Your plan will guide you through your company’s early childhood.

     Step 3     Determine how to finance your business. Consider how much money will be needed for the first 6 to 12 months of your business. Most people who start a small business finance it from their own savings, or through family and friends. You may also be able to take out a personal loan. This is the most difficult aspects of starting your business, but don’t let it discourage you. 

     Step 4     Determine how to structure your small business. Most small businesses are either a Sole Proprietorship or a General Partnership. Another option becoming very popular is a Limited Liability Company (LLC). Sole Proprietorship works well for any business that is owned an individual. General Partnership is for a small business with two or more owners. The advantage of an LLC over the previous two is lowered liability for the ownwer(s).

     Step 5     Register your business. In Wisconsin businesses are registered by the Secretary of State. You can fill out the paperwork at the local level, usually at the local Court House. For basic company structures, a simple form and filing fee, is all that is needed. Contact your local County Clerk’s office or Chamber of Commerce for information on how to register in Wisconsin.

     Step 6     Open a bank account for your small business. A business savings account is good to have since it will generate interest, although a business checking account is your main need, in order to pay expenses. Contact several banks in your area to check out the fees and requirements they have for a business account. Use this information to decide which bank is best for your business.

     Sounds too easy? Well maybe it is and maybe that is one of the reasons so many new businesses fail. Don’t let this discourage you though. If you really want to start a business and you really want to succeed, Spend a lot of time working out theses five steps on paper, especially the first three. If after all that work, you still want to start a business of your own, go for it and good luck.

Tot volgende week kinderen, Papa DonderVogel, signing off.


December 3, 2009

Saving for Retirement

Filed under: Uncategorized — grob1o61 @ 1:27 am

Zeg aan hallo kinderen, Papa DonderVogel Is op de zeepdoos opnieuw.

Today I’m going to pass out my advice on one of the ways to start saving for retirement.  What’s that? Your only 18 and you have lots of more important financial needs?  Doesn’t matter because if this option is available to you, it is pain free.

If your employer offers a plan that you can invest in, with pre tax dollars, from your paycheck, you are in luck.  It is certain that you can invest at least 5% of your gross income, before Uncle Sam gets a bite out of it, and the best part is, you will still get your full take home pay because Uncle Sam will get less.

     For most people you can invest 6% or even 7% without affecting your take home pay. Let’s take a look at this, say you only make $100 per week, and therefor invest $20 per month and average 5% interest. If you start at age 20, you will have over $22,700 at age 55.  Doesn’t sound like much? Well, do you expect to spend the next 35 years at $100 per week?  Let’s up it only a little bit, say twice as much, $40 per month.  That equals $45,443 at age 55. At age 65 that comes to $81,057 and change.  Wait a minute, how did that happen?  The financial magic of compound interest.  Aren’t you glad you didn’t wait to start saving until you were 30?  Let’s say you graduate at 22 and make $30,000  per year in your new job.  For some reason, you never get a raise.  If you invest 5% of your income every month, and save until you are 65 years old, at 5% you will have $226,397 plus.  If you can’t get better than 5%, you aren’t looking.  Lets’s try that last one at 6% – $302,800, 7% – 409,500 and so on.  If you can’t get a raise in 43 years, you went into the wrong field.

     One more suggestion, when you get that raise / those raises, take a close look at how they compare to your previous pay.  If your budget isn’t running extremely tight, you probably can get by with only part of that raise in your takehome.  You received a 2% raise, how about increasing your pretax withdrawal and therefor your investment by another 1%?  If you increase by 1 or 2 percent every raise, you could easily end up with a million dollars by retirement.  Now that’s sounding like some fun.  If you would like to play with these numbers on your own, see last weeks blog and email me to get my free little financial program.  No strings attached!  However, I can already see making a few improvements to my programs.  When that happens, you’ll find out here.



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