How to Start a Small Business as a Freelancer in Sacramento, California

Are you a freelancer who is ready to take the plunge and turn your side hustle into a full-fledged small business? If so, there are a few key steps you'll need to take to get started. The following article offers tips on how to make the transition to entrepreneurship here in Sacramento.

Writing a Business Plan

One of the most important steps you'll need to take when starting a small business is creating a business plan. This document will outline your business goals, strategies, and how you plan on achieving them. Your business plan should be clear and concise — it doesn't need to be overly long or complicated. However, it should cover all of the key aspects of your business, such as your target market, marketing strategy, financial projections, and more. Creating a business plan will improve your chances of success and help you secure funding from investors or lenders if needed.

Going Back to School

Another important step you may want to take when starting a small business is returning to school to earn a degree in business administration or management. This will give you the skills and knowledge you need to run a successful small business. A degree from an accredited university or college will also give you instant credibility with potential clients or customers. And if you're looking for funding for your startup, investors are more likely to give money to someone with formal training in running a business. So if you're serious about starting a small business, going back to school is definitely worth considering.

Establishing an S Corporation or LLC

When starting a small business, you should also consider setting up an S corp in California. This type of corporation offers liability protection and tax benefits that can help your business succeed. For example, if your company is sued, the assets of your S corporation will be protected from seizure — only the assets of the individual shareholders will be at risk. And when it comes time to file taxes, S corporations often have lower tax rates than other types of businesses.

While an S corp might be your best choice, there are several reasons why you may want to consider starting an LLC in California instead. First, an LLC offers more protection for your personal assets. If your business is sued, the plaintiff can only go after the assets of the LLC. Second, an LLC can give you some tax advantages. The income and losses of an LLC are passed through to its members, so members pay taxes on their share of the income. This can be a big advantage if you are in a high tax bracket. Finally, an LLC provides a degree of ownership and control that is not available with a sole proprietorship. Members of an LLC can make decisions about the business without having to go through a third party. This can be especially important if you are the only owner of your business.

Networking Locally

Another key step you should take when starting a small business is networking both online and offline. Networking can help connect you with potential clients or customers who may be interested in what you have to offer. It can also help connect you with other entrepreneurs who can provide advice or mentorship as you get your business off the ground. There are many different ways to network—attending industry events or Meetups, joining relevant online forums or groups, joining the Sacramento Metro Chamber of Commerce — so find what works best for you and get out there!

Promoting Your Business

Once you've taken all of the above steps, it's time to start marketing your new small business! There are many different marketing channels available these days, from online advertising (e.g., Google AdWords) to traditional offline methods (e.g., print advertising). Figure out which channels make sense for your specific target market and start promoting your company today!

So there you have it — a few key steps that every freelancer should take when they're ready to turn their work into a small business in Sacramento, California! By creating a strong business plan, returning to school to earn a degree, forming an S corp, networking, and marketing their new venture, entrepreneurs can set themselves up for success from the very beginning!