From musicians and actors to magicians and comedians, the entertainment industry is responsible for providing entertainers for anything from birthday parties to corporate returns. Although many companies specialize in one type of interpreter, it is possible to employ many people with different skills to meet different needs. Find out how to start your own entertainment business and if it’s right for you.
We’ve put together this simple guide to starting your entertainment business. These steps will ensure that your new business is well organized, properly registered and legal.
1. Plan your business
A clear plan is essential to succeed as an entrepreneur. It will help you outline the details of your business and uncover some unknowns. Here are some important topics to consider:
- What should you name your business?
- What are the startup costs and fees?
- Who is your target market?
- How much should you charge customers?
2. Create a legal entity
The most common types of business structures are Sole Proprietorship, Partnership, Limited Liability Company (LLC), and Corporation. Forming a legal business entity such as an LLC or corporation protects you from liability if your entertainment business goes bankrupt.
You can start an LLC on your own and pay only a small state LLC fee or hire one of the best LLC services for less. Step
3. Register for tax
You will need to register for various state and federal taxes before opening your business.
To register for taxes, you will need to apply for an EIN. It’s really easy and free!
4. Open a business bank account and credit card
Using a dedicated bank and credit account for business is important for the protection of personal assets.
When your personal and business accounts are combined, your assets (your home, car, and other valuables) are at risk if a lawsuit is filed against your business. In business law, we talk about piercing the corporate veil.
5. Set up company accounts
Recording your various expenses and sources of income is important to understanding the financial performance of your business. Keeping accurate and complete records also makes your tax return much easier.
6. Obtain the necessary permits and licenses
Failure to obtain the necessary permits and licenses can result in heavy fines or even the closure of your business.
7. Get professional insurance
Just like licenses and permits, your business needs insurance to operate safely and legally. Business insurance protects the financial interests of your business in the event of a loss. There are many types of insurance policies designed for different types of businesses with different risks. If you are unsure about the types of risks your business may face, start with general liability insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.
8. Define your brand
Your brand is what your business stands for, and how the public perceives your business. A strong brand will help your business stand out from its competitors.
9. Create your business website
After defining your brand and creating your logo, the next step is to create a website for your business. Although creating a website is an important step, some may fear that it is too much for them because they have no experience in building websites. Although it may be a logical fear in 2015, web technology has seen great progress in the past few years, making life easier for small business owners.
10. Set up your business phone system
Updating a phone for your business is one of the best ways to keep your personal life and work life separate and private. This is not the only benefit; it also helps you to automate your business, give your business legitimacy, and make it easy for potential customers to find and contact you.