Stupid Tax

#8 - Business 101: Everything You Need to Get Started

Oct 23, 2023

In this podcast, Mitchell and Scott discuss the essential steps to start a business. They highlight the importance of focusing on finding customers and building a viable business before getting caught up in legal and administrative tasks. They also cover topics such as choosing the right entity type for your business, opening a bank account, incorporating for liability protection, using accounting software, and the benefits of employee leasing companies. They touch on the challenges of hiring and the importance of having smart competitors in the market.

01:32:52

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Quick takeaways

The customer should be the primary focus of a young entrepreneur, even before the product.

Opening a separate bank account and using accounting software are essential for financial management.

Insurance and proper documentation are crucial for protecting the business and handling potential legal issues effectively.

Deep dives

Setting up the business

To start a business, you should open a separate bank account and put aside enough funds to cover the first few months of expenses. This will help you track your finances easily. Consider getting an LLC and elect the appropriate tax treatment. Insurance is important for protecting your business, including general liability insurance and workers' compensation. Accounting software, such as QuickBooks or Better Bookkeeping, is necessary for managing your finances.

Introduction

2min

Finding the Right Customer

11min

Choosing the Right Entity Type for Your Business

18min

Opening a Bank Account and Registering an LLC

4min

The Importance of Incorporating and Liability Protection

16min

The Importance of Accounting Software for Business Owners

2min

Getting Started with Bookkeeping

5min

Employee Leasing Companies and their Benefits

9min

The Resentment and Costs of Hiring

9min

10.

Importance of Having Smart Competitors

16min

Mitchell and Scott outline the basic things you need to get a business going: which legal entity to pick, how to register for it, how to setup a bank account, and more. As Scott underlines, the most important thing for starting a business, that comes before anything else, is a customer! In Scott's view, the customer comes even before the product, and should be the primary focus of the young entrepreneur.

Mitchell agrees. Many people get hung up on setting up an LLC, opening a business bank account, and other legal and administrative tasks before they even have a viable business. As he explains, while those things are very important, you have plenty of time to set them up after you've started making money. Since you may change your product or service, and maybe your whole business model, after getting into the market and interacting with customers, you shouldn't let legal tasks block you from just starting.

Mitchell and Scott's list of items, in order of importance and complexity: