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BowTiedKoi's avatar

Starting off strong and feeding the ego is key to an eventual exit. If you are stellar for the first 6 months, they will peg you as an excellent employee and great at your job. As long as you do the bare minimum from there on out, you will always be viewed this way. Why? Because if they stop viewing you this way it means that they were wrong in their original assessment of you and they will never want to admit this.

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IronHamster's avatar

I suspect for some a lot of initial hesitation about starting a full-on formal business is fear of the unknown. There not only is a huge gap between idea and execution, but there are additional 'unknown' variables of just getting your first business started without forgetting to do something important that will get you in trouble.

One way to reframe it is seeing it as a class with fairly low tuition. Years ago, when I started my first online business, I did so with intentionally limited scope just to learn the basics without stressing out with a huge commitment. This may be helpful for those "on the spectrum" who need to see concrete examples.

Issue: Lab Block for hamsters, the ones used for scientific studies (i.e. the 'good stuff'), is a lot better and consistent than the garbage found in pet stores put together by the low bidder on whatever was cheapest that day. You think eating bugs is bad? Try eating something so hard to digest it has to pass through your digestive system twice.

Problem: Lab Block only comes in 50 pound bags. Even for a hamster, that is excessive.

Solution: Purchase the Lab Block, divide it into one pound bags, and resell it on eBay.

Now that the business model is done, how to go about actually making it a legit business?

1. Look into the requirements for a business license in your jurisdiction. I needed a Federal and State tax ID number, a Sellers Permit, a business fictitious name (DBA), plus there were some restrictions on what a home business could do. I also found that after June 30, the annual business permit was 50% off.

2. In order to get a Sellers Permit, I needed to publish a "Does Business As" (DBA) for several weeks. My local paper wanted over $100. A freebie paper only wanted $30. As an added bonus, I could add a second business name for an extra $4, so why not?

2a. This would be the time to buy your web domain, even if you aren't planning on operating a website, as it can also be used for emails which make you look legit (sales@mybusiness.com vs. totallynotascam32465@gmail.com).

3. The other requirement for the Sellers Permit was I needed to be interviewed by a state official in person, who asked about my business plan and the DBA before issuing it. That was awkward, but I guess these people have seen everything and don't care as long as you pay your taxes.

4. I had everything I needed so I got my local business license.

5. With the permit and tax IDs, I went to a bank and opened my business accounts. They had a promo so they ended up contributing $200 which offset some of the above.

6. With those and my email accounts, I opened my PayPal account and then linked it to my Ebay account.

Now all the legalities are taken care of, just remember to pay your taxes and renew your licence. The rest is the business part.

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