This blog is being written for those looking to start a business or are currently in the process of starting a business.
Opening a business can seem overwhelming if you allow it. Just take one step at a time. I love paper! I write everything down, notes, lists, lists for my lists... I'm working on lessening the amount of paper I use and I certainly recycle, but my point is start by writing everything down whether on your computer, tablet or paper. You do not need to start with an organized list. Write down any thoughts, ideas, questions, things to do, anything and everything. You can decide later what is important and what is not. Keep a notebook with you at all times.
The first thing Cody and I did was start the process for our LLC. It's quite simple and if you simply go to the internet and search 'Starting an LLC in California (or whatever state you live in), you will find detailed information and steps to make that happen. Ours was completed in about 10 days. Then we ordered business cards. We did not have a business address at the time but we ordered them anyway, because we wanted to leave every person we came in contact with as we formed our team (this will come in our next Blog), our information. We used Vistaprint for our business cards and later for signs to place on the properties we were renovating. We decided we did not want to use our home address as our business address so we use UPS which gives us a mailbox and an actual address, not a PO Box. It is not recommended to use a PO Box as your business address or your personal address, but that is a decision for you to make.
There are many decisions to make while structuring your company, like what business structure will you use. There are tax benefits to some more than others, so research and find what is best for you. Changes can always be made later. If you have a partner or partners what are the responsibilities for each. Make sure this is in writing even if your partner is your spouse. This is a business and the more clear the responsibilities, the better as you grow. The responsibilities may change as your business grows. One of the biggest lessons we have learned is this business is very fluid. There are mulitple decisions to be made in a day, sometimes in the hour or all at the same time. This is not a business for the faint of heart. It can be exciting, frustrating, and tiring all at the same time. It is a rollercoaster of sorts, but of the best kind! If you need solid structure, consistency and time to mull over to make decisions, this might not be the business for you, or maybe you need to take on one specific roll within the company to keep your sanity.
I am not trying to discourage anyone. I figure if a teenager and a mom can do this business, anyone can whose willing to put in the time and money and then follow through can too! Cody and I have purchased homes where another investor started a project and clearly had no idea what they were doing or bit off more than they could chew. My thought is they did not effectively do their homework, plan and then execute. No one wants to lose money and God forbid if you borrowed money. The stress of that one piece is enough to make someone go nuts. So make sure you do your homework. Know your timeline and all the costs- purchase, rehab, holding, selling, interest on loans, travel and meals all add to the bottom line for each project.
Be prepared, set up your business correctly and make sure your team is made up of like minded people who you can trust and depend on.
Building your team (real estate agent, contractors, subcontractors, lawyer, lenders, buyers and others that support and help build your business) is in the next blog, until then, Be Safe!