Getting Down To Business

Hear Dave walk Mike through the process of starting a business, step by step.

QUESTION: Mike wants to start a portable putt-putt golf course business. He doesn’t have a lot of experience, and wonders what he needs in hand. What should he do to learn and get started?

ANSWER: I would not incorporate; just do a sole proprietorship. You may need a small business license as well. I would open a checking account to operate the business out of. You can do that with your Social Security number. Make sure to have DBA on the checking account, for “doing business as”, then list the name of the company. All the money you make from your company goes into that account and all expenses go out of that account. What’s left over is called profit.

Sit down with a certified public accountant and find out how to set up some basic bookkeeping works. Then you can start seeing where your money is going. When you get ready to pull money from this account, set aside a fourth for taxes. Pay cash as you go.