Business Idea

Katra · Aug 11, 2006

Hi Sbarr,

are you looking for info on how to actually do a business start up? Or just looking for general ideas? I currently own a mobile business (not in the medical field) and I'll try to help.

Due to the high level of personal liability your first concern should be protecting your assets. You wouldn't want to get sued and say, lose your house or retirement money. You can make an appointment with a business lawyer for a new business consultation. It would be wise to incorporate IMO. If you are driving yourself to and from your engagements, your state may require you carry commercial drivers insurance. That is a write off.

The second thing is taxes. A self employed person pays roughly a third of their income to Uncle Sam (if they are a US resident). Depending on your business entity, you'll have to figure out when and how to pay yourself. You will also have to keep track of federal witholding, any state and local taxes, and pay estimated quarterly taxes. You will need seperate bank accounts from your personal ones.

Liability insurance is very, very important as I'm sure you can imagine! I have no idea what something like that would cost.

Do you need business start up money? If so, you will need a business plan or the banks won't even talk to you.

The way to start out would be to figure out what your expenses will be exactly, or as close as you can come. Then figure out what you need to charge (don't forget to add 30% for taxes!) and see if the take home is worth the trouble.

Here is a quickie list to help you get started:

business insurance

commercial auto insurance

attorney fees

accountant fees

vehicle expenses and maintanence

gas (which is climbing higher as I type!)

business phone and cell

marketing

office supplies

equipment

uniforms

Another thing I didn't think about is how will your employer react to you doing your own thing? Will you be able to solicit clientele from them? If you can't solicit, you'll need a marketing plan. Marketing can start anywhere from a few hundred dollars for a newspaper and phone book ad to thousands for a direct mail marketing campaign, or a radio or tv commercial.

You'll need to figure out a service area too. Keep in mind, as gas prices rise you may not want to travel too far from your home or regular job. My mobile business serves a 9 mile radius of my home. Time spent driving is time spent not making money.

Good luck, and if you have any questions please feel free to ask!

Katra

SBarr · Aug 11, 2006

Thank you Katra I did not know I would get such a through response. I really appreciate it. Thank you for the advice. What sort of marketing do you find most effective. By the way what sort of mobile business do you operate?

HarryHK · Aug 20, 2006

I have been a NICU nurse for 2 years. I have been asked plenty of times by parents if I could come home with them and teach what they need to kinow to care for a baby. They said the would pay me. I was thinking I could this as a business maybe a newborn specialist or Babynurse. Does anyone have any advice as to how I could go about starting a business like this?

Why not just start out doing a bit of part time for the parents who expressed interest? See how it goes, and what kind of revenue you might make compared to your real job income. Best way to ease into a new business!

You can do without anything else to start. You have what I would consider to be very low risk business, basically just education. While I agree with Katra about incorporation, if you do it (and you can wait for some time), it would be for tax reasons, not liability. Being incorporated does not protect you from any claims due to professional malpractice. Kind of confusing because the phrase "limited liability" entity comes up a lot. Incorporation will protect you personally from the actions of your employees and partners(under some conditions). Also from accidents that occur on your premises (such as slipping on an icy sidewalk). But zero protection against malpractice. Get insurance.

Since you are doing home visits, you might also consider getting general Liability Insurance if you go full time. As I said, I believe your risk exposure is exceptionally low. Currently as an independent traveling nurse, professional liability and general liability (required by hospitals) is about $500 a year through NSO.

Almost certainly, under the conditions you are speaking about, you do not need anything additional regulation wise. Your professional license works as a business license. If you start making a significant amount, you will have to pay estimated taxes quarterly (local if any, state and federal).

I would skip anything else for now until you get your feet wet and see how it goes. I've been independent for three years now (incorporated for two) and have yet to get advice from a lawyer or CPA. Even do my own taxes. I have however utilized a payroll company, makes reporting much easier even though I only pay myself once a year.

While travel time may or may not be significant, you may also be able to bill your clients for this time (or have them come to you) at the same rate or perhaps a reduced rate. Either way, you can deduct mileage at the IRS rate (44.5 cents a mile for 2006). Part of the power of being independent is that this is a direct deduction (expense) - no need to itemize.