Wondering what it takes to open a business?

[wadek2008]

Okay, I have a friend who is thinking about opening a coral store. It would be an e-store. I'm just wondering how to advise my friend about setting up a business. I mean, out of curiosity, what does it take. I know a privilege license from the city he's in, but beyond that? If he gets a privilege license he'll get his tax id right? What does he have to have beyond that? Any kind of registration with the federal gov't?
Thanks you guys. I know there are all kinds of experts on here.

 

[Boyd]

a DBA - doing business as......
A Tax ID - If he has to charge sales tax
an accountant....... I recommend Saddina

 

[English Chick]

Also needed determination and committment... I wish your friend well...... Woot!

 

[calicokat]

Look in your local phone book for a SCORE chapter - the Service Corps of Retired Executives. They'll meet with him free to discuss the business plan (usually required for bank loans), logistics, tax implications, etc. They are a good "reality check" when someone wants to go into business.

There are many, many parts to the puzzle of running a business and the newby doesn't always know what to expect, or even what questions to ask when getting started -- kinda like starting a flock of chickens. Sometimes the SCORE chapter is connected with the local Chamber of Commerce, so if you don't find them in the phone book, try there.

 

[Hollywood Chickens]

Start on eBay get customers and you can start slow.
I have an eBay business I started with 2 dozen items in October and now I have over 300, I ship anywhere from 5 to 20 packages a day, I have repeat costumers, and an online store, and a FB fans page with almost 300 fans.

It is not hard to start a business if you have a little money to start with and patience for it to grow.

 

[chickenwhisperer]

Dont forget a "wholesale lisence" . . .
In Ca, they are called reseller permits.

You only need a DBA if you arent using your name in the stores name- Ralph Mclovins Coral World as compared to Corals Are Us.

Most ppl that do online business like that do not have all the necessary paperwork, but it sure makes things easier when finding/proving your tax exemptions.

I have a frog-breeding biz, and all I have is the resell permit and a biz liscence.
Everything is a tax write-off.

 

[chickenwhisperer]

I also used to dabble in corals and reef tanks, I would think that unless s/he is propagating his/her own corals on a mass scale, the overhead will really outweigh any profits.
All the lights/electric and chemicals needed, time invested in water parameters, etc . . .

All the coral shops I used to deal with are mostly out of biz, except for the big wholesalers.
That is a very specific market/clientel, and right now most folks do not have expendable money . . .

I love corals and reef tanks, I wish your friend luck!
I always used to try to buy off home-based hobbyists, but expense was certainly a factor.

 

[rebelcowboysnb]

I know you should expect to be paying out for then first 2 years so have the finances to cover that.. As for coral.... If you have a local supply of sea water an a local quarry that can get you lace rock then you just need a greenhouse, tanks, pumps an your starting stock.

If you have to make sea water or ship in lace rock it can still be done but I would not advise it.

 

[wadek2008]

Thanks for all the advice you guys!