Like the Great Depression remade the landscape of the United States in the late 1920s and early 1930s, the Great Recession of the 21st century shook up the employment universe. Jobs vanished and never returned, those who survived received a substantial cut on salary or benefits and hiring became a much tougher challenge. Many of those affected went back to school to obtain a degree and start a new career from scratch. Others gave up on working for someone else and decided to create their own small business.
Small business have popped up in exponentially large numbers since the dust settled from the Great Recession. And why not? Creation of a business can cost very little as long as one knows the steps to protect themselves and their young family. The Small Business Administration even created a 10-step plan to start a business. Here are a few of the items mentioned and what they can cost.
Adopt a business plan — Cost: $0?
Creation of a business plan is basically free. There are number of websites that offer templates for the setup of a business model. For example, Entrepreneur magazine provides PDF and PowerPoint templates for a number of scenarios. The reason for the question mark at the cost is you can opt to pay someone to create a plan or at least advise on one. The price for this can range anywhere from a few dollars to several hundred.
Locate a business location — Cost: $0?
Again, this can vary depending on what type of business you decide to set up. For example, self-publishing books or selling crafts can normally be done from the comfort of one’s residence and cost little or nothing except materials. Those who wish to sell or display their wares in a location other than the Internet may want to do so in a brick-and-mortar located. This can cost several thousand dollars a month in rent and utilities.
Register a business name — Cost: varies
State fees to register a business name vary in cost, though most of them are $100 or less depending on the type of setup you’d like. What can cost much more is trademarking your business name for the purpose of marketing. Registering this with the U.S. Trademark Office can run an individual over $300.
Register a tax ID number — Cost: Free
You don’t have to register a Employee Identification Number (EIN) with the IRS to run a small business, especially if you feel it’s not going to make much money. For those who are making this enterprise their full time occupation an EIN is almost required in order to set up connections with vendors and establish a business banking account. The good news is the establishment of an EIN is free via the IRS website.