¡Preparate!- How to Create Your Business Identity

Once your brand has been established it is important to take on the next step, which is to select your business’s entity. These are three different types of entities you can choose from: 

-Sole proprietorship: This is primarily for people who want to launch what is known as a “low risk” business. This can be something like selling tamales, churros, arrepas, donitas, etc. However, not recommended if your intend business will receive outside investments.

-LLC: This kind of business separates business assets from personal assets. If a business goes through bankruptcy than the owner’s personal assets will not be as affected. 

-Nonprofits: A nonprofit organization is a mission driven organization. They must be registered within the state. However, if you would like for your business to have a tax exempt status, you need to file a separate form through the IRS. 

It is important that business owners are proactive and they takes some time to register their business license. They should be mindful of their state’s requirements because a state’s requirements do vary from state to state. If you’re not sure where the requirements can be found, go to the state’s website. 

Beware that the way people pay their taxes will depend on the kind of business they have. 

As you find yourself in the journey, know that you are running an individual race. Don’t measure your success based on someone else’s journey. You are business is unique to you and your individual situation. Be patient with the process, profiting off of a business might take a few years. 

Pro tip: It’s really important to figure out which entity type suits you and your business. Understand the tax implications associated with it. Not everyone needs a C-corp or an LLC. -Daniela Corrente, SUMA Chief of Business and Strategy

That is not to say you should not prepare well. In order to predict your business’s sales consider 3 specific pillars: cost, capacity, and market research.

Costs: Your costs will shift based on the kind of business you will have! An A.I. ranchera song writing business will be very different to the costs involved with running a hair salon. So be mindful of your products costs and how they will affect the total cost of your product. 

Capacity: An important component to build your financial plan. Understanding capacity will better allow a person to understand how they can build their business and scale it. 

Market Research: Market research is an opportunity to dig deeper into potential customers. Understanding if they would pay for your product or service, if they would like the product or service, and even how to improve the product according to their needs. While keeping an eye on their size and their spending power.

Cost, Capacity, and Market Research are 3 essential pillars to building a successful business plan. Make sure you check out SUMA’s goal tracker to stay ahead of the game and launch your business successfully. There are so many goals to cross off, so keep don’t so keep your eye on the prize with SUMA’s goal tracker!

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