If your business would suffer in your short absence, then you are a business operator – not a business owner . When we define a business operator, we see that it involves the day-to-day running of a company. It’s very hands-on and, when the operator is not on-site, the business usually comes to a screeching halt. For a business owner , the focus is on making decisions for and profiting from the business.
Common Interview Questions for Business Owners
Preparing for an interview can help you gather relevant information and consider which answers you want to give. A business owner or entrepreneur might be interviewed for many reasons, such as to publicize their business or introduce their company to new consumers. It can be beneficial for business owners to prepare before giving an interview to determine how they can discuss different areas of their business and emphasize certain qualities or values that their company has. In this article, we explore 10 potential questions a business owner might encounter in an interview.
A business owner is someone who is in charge of running a company. Many business owners come into ownership by purchasing a business from its previous owner or acquiring a company through partnership. One popular type of business owner is an entrepreneur, who founds their own company based on a unique idea. Business owners and entrepreneurs typically oversee business operations and procedures in a company and manage employees to ensure their work reflects the company’s values and mission.
Traits of successful small business owners
Self-motivated: Small business owners need to self-manage their daily tasks and responsibilities. Self-motivation or the ability to complete tasks independently can help business owners complete tasks and reach their goals.
Determined: Starting or operating a business can take determination and perseverance. Determination can help small business owners succeed and overcome challenges.
Confident: Small business owners may present information to clients or investors, recruit team members and market their services. Confidence can help business owners present information effectively.
Creative: Whether small business owners manage an existing business or start their own, they can use creative thinking and innovation to launch new products, methods and ideas.
Adaptable: As the market changes, successful business owners adapt and adjust their business plans and marketing strategies. Developing a flexible attitude or adaptable mindset could help business owners succeed.
Persuasive: A small business owner may need to recruit others to join their team or invest in their business. Strong persuasive skills can help them promote their company and explain their services.
Leadership skills: Small business owners oversee a team of professionals. Strong leadership skills such as delegation, motivation and communication, can help them effectively lead their teams.
Write a Business Plan
Creating a business plan will help you set (realistic) goals and figure out how much cash you’ll need in your first year. It’ll also make you think about the number of clients you need and the type of marketing required to attract those clients.
Entrepreneurs need to be able to explain why their business idea will succeed. Part of this involves identifying how you’ll do things similarly to your competition and how you’ll do them differently, according to Inc.. The different part is key—it’s better to not go up against your major competitors directly but find a niche.
Use the Small Business Administration’s SizeUp tool to get a comparison to your competitors. This will help you not only sell your business idea to others, but identify and resolve any weak spots in your business idea from the beginning.
Identify Your Audience
Who are you writing this business plan for? For example, you may be writing the plan to apply for a loan. So you’ll want to lay out all your costs and projected return on investment (ROI). A lender will want practical and level-headed details, like how the loan will be repaid. Don’t promise huge profits as this can signal big risk. And make sure to outline any risks associated with your business.
Use a Template
The Small Business Administration has a business plan template that’s free to download. It’s important to have a structure to follow so you hit all the key points (and ensure you look like a pro, not a rookie). It’s also a good idea to Google business plans to see what other companies like yours have done in the past.
How to become a business owner
If you can’t step away from your company and let others steer the course, your new goal is this : Learn how to become a business owner instead of an operator. Choose to make that shift in both your identity and your business. How? As Tony said, a business owner is the ultimate strategist.
If you ask yourself “What is a business owner ?” then you likely have some areas where you can improve when it comes to running your own company. Want to learn how to become a business owner and get out of operator mode? Here’s what it takes .
1. Wear a variety of hats
Though the goal is to build a cross – functional team that can handle most aspects of your business without you, this won’t be the case in the beginning. As a new business owner , you will find yourself answering phones and mopping the office floor in addition to making presentations and landing big deals.
You’ll likely need to learn new skills as well, like accounting and reading financial statements . A business is only as strong as the psychology of its leader, and there’s no shame in admitting that you have weaknesses. In fact, it’s essential to ask for help when you need it or even outsource some work so you have time to focus on what really matters.
2. Make personal sacrifices
A business owner will have to make some short-term sacrifices to grow their company. This could mean long hours, missed vacations and putting extracurricular activities on hold. However, the bigger picture is that this effort will help you achieve long-term goals.
Remember that there is no such thing as work-life balance – there is only work-life integration . When you’re doing what you love, your work and life are naturally integrated. And once you’ve built your business and found ways to increase profits , you can enjoy the freedom you’ve earned.
Tax basics for registered self-employed business owners
Choosing a tax structure
In a pass-through taxation model, your business does not pay taxes on its income. Instead, the income is passed through to the business owners who pay taxes on that income as part of their personal tax returns. The term “pass-through” is used in sole proprietorships, partnerships, and LLCs that elect a partnership taxation model.
The pass-through model is the only tax method available for partnerships and sole proprietorships. If you are a sole proprietor, you report your business income on Schedule C of your personal 1040 (individual tax return) .
If you are in a partnership, your partnership must file Form 1065 with the IRS to report its business income. Your individual partners all receive Form K-1 from your business to report their portion of the business income on their personal tax returns.
LLCs have the option to choose corporate taxation or partnership taxation. If your LLC chooses partnership taxation, your business must file the same forms with the IRS that a partnership files. Additionally, the individual LLC members will receive form K-1s and file them with their personal tax returns.
Corporations are taxed under a double-taxation method. The corporation pays taxes on the business income, and the shareholders and employees pay taxes on the personal income paid out by the corporation. Taxes are paid at two levels. Corporations report their business income on Form 1120 . Employees report their W-2 wages or income received from the corporation on their personal tax returns (Form 1040).
Shareholders report any dividends paid to them by the corporation on line 3b of the shareholders’ personal tax returns. To inform the shareholders of the dividends they received, the corporation must issue the shareholders a form 1099-DIV .
Plenty of reasons might compel you to choose a partnership tax model over a corporate tax model, but an attractive benefit for many business owners is the ability to write off certain business expenses. You do not have the ability to do this in a corporate, double taxation model.