How to Decide What Type of Business Option to Pursue in Des Moines, Iowa

When it comes to starting a business, there are many different factors to consider. With so many options available, it can be difficult to know where to start. But don't worry — in this article, we'll walk you through some key considerations for deciding what type of business is right for you in Des Moines, Iowa. Keep reading to learn more.

Assess Your Skills

One of the first things you should do when considering what type of business to start is assess your skills and experience. What are you good at? What do you enjoy doing? Do you have any relevant experience in the industry you're considering entering? Answering these questions can help give you some direction as you begin your research.

Research Your Potential Market

Once you have an idea of the skills and experience you bring to the table, it's time to start researching market demand. Is there a need for the product or service you're planning to offer? Is there already a lot of competition in the space? These are important questions to answer before moving forward with your business plans.

Write Up a Business Plan

After you've done your research, it's time to start putting together a business plan. This document will outline your business goals, strategies, and financial projections. Having a solid business plan is essential for any successful business venture, as it will give you a launching point and a tool to reference as you grow your company.

Be Honest About Your Availability

Another important consideration when starting a business is how much time you have to devote to it. Running a business takes a lot of time and effort. If you're not prepared to make that commitment, it's probably not the right time for you to start a business.

Structure Your Company the Right Way

Once you've decided that starting a business is the right move for you, it's time to take some practical steps toward making your dream a reality. One of those steps is structuring your company. While there are many business entities to choose from, two worth mentioning for new entrepreneurs are LLCs and S corps.

An LLC, or limited liability company, is a popular choice for small business owners because it offers several advantages over other business structures. Perhaps most importantly, an LLC gives the business owner personal liability protection. This means that if the LLC is sued, the owner’s personal assets are protected from seizure. In addition, an LLC offers tax benefits. The IRS treats an LLC as a “pass-through” entity, which means that the LLC’s profits and losses are passed directly to the owner’s personal tax return. This can be a significant advantage for small business owners who are in a high tax bracket. Finally, an Iowa LLC is relatively simple and inexpensive to set up and maintain.

Designating your business as an Iowa S corporation could also offer you several benefits. The profits and losses of an S corp are passed through to the shareholders, who report them on their individual tax returns. This can result in significant tax savings, especially if you're in a higher tax bracket. Plus, as an S corp shareholder, you're protected from personal liability for the debts and obligations of the company. This means that if your business is sued, the plaintiff can only go after the assets of the company, not your personal assets. 

Hire Professionals as Needed

Finally, as you get closer to launching your business, you may want to consider hiring some professional help. A lawyer can assist with writing contracts for clients, contractors, and staff members. An accountant can help with bookkeeping and tax filings. And a marketing consultant can help get the word out about your new business venture. You can find great local talent to hire through your FuseDSM Chamber of Commerce membership.

As you can see, there are many factors to consider when deciding what type of business is right for you. But don't let that overwhelm you — just take things one step at a time, and soon enough, you'll be on your way to becoming a successful entrepreneur here in Des Moines!