Issue link: https://www.ahpindiestylist.com/i/1483267
N ot a m e m b e r ? J o i n at a s so c iate d h a i rp rofe s sio n a ls .c o m 43 your business structure in the future, but you may be faced with restrictions and tax consequences. Register Your Business To ensure you operate legally, you must be aware of the rules and regulations in your area. You'll also need to consider the licenses and permits required to open and operate a business. Rules, regulations, licensing, and even permits vary by city, county, and state. Ultimately, you'll want to go to the city or county building in the area you want your business to be. The employees there are well-versed on what's needed to open your business. You may also want advice from a lawyer and/or an accountant to learn the ins and outs of establishing a business in your location. Look at Your Finances As a business owner, it is imperative to know the source of your money, how you will spend it, and any necessary payment arrangements. There are times when you need an increased infusion of capital to remain competitive. This may occur seasonally, such as the need to purchase additional inventory for the busy holiday season. Capital is required in business for the following expenses: • Hard costs: These are the costs of your actual assets, such as equipment, computer hardware, telephone system, stereo components, supplies, and product inventory. • Soft costs: These include variable expenses, such as recruitment, training, computer software, and marketing materials. • Fixed expenses: These business costs remain constant, such as monthly rent, utility bills, and equipment leases. • Recurring expenses: These are expenditures that occur on a regular basis, such as taxes and insurance. • Variable expenses: These costs fluctuate based on the increases and decreases in the income generated by your business. The more you make, the more you can spend on payroll, benefits, resale products, legal and accounting services, advertising, and taxes. Pick a Location If you plan to work alone, aside from working at home, you might want to consider renting a suite or a single room inside an established salon. If you want your own storefront, make sure to rent a location that gets a lot of foot traffic, offers easy access, is far from competitors, and has adequate parking. Also remember, your location determines your taxes, zoning laws, and the regulations your business may anna shvets/pexels