StartupTalky

Tag: business plan

  • How to Set Up a 401k Plan for Small Business with Minimal Stress?

    A 401(k) plan is a retirement option sponsored by employer to help employees contribute pre-tax dollars to their accounts. As a result, the contribution reduces an employee’s tax liability while letting them save for retirement. When the employee reaches a certain age, they receive distributions from their account. Some of the responsibilities you have as an employer is to set up a 401k plan, whether running a large or small business.

    Devising the best 401k plan for small business with employees is an excellent compensation package, and there are various types of 401k plans for small business owners you can choose to work with. For small businesses that want to help their employees save for retirement, the IRS website provides the guidance for actions you need to set up a 401(k) plan.

    This article covers a step-by-step guide on how to set up a 401k plan for small businesses.

    1. Decide on who will Establish and Maintain the plan

    As a 401k plan administrator, you need to decide who will set up the plan. You might want to set it up on your own or ask a professional or financial institution to do so. These institutions could either be a mutual fund provider or an insurance company.

    If you set up the plan yourself and maintain it, it will be more cost-effective but can be time-consuming. It is advisable to weigh the pros and cons of seeking the assistance of a professional or financial institution. In most cases, it suits you better to delegate such duties to expert financial advisors since they experienced in doing it.

    Types of Business plan for Startup Founders
    A business plan [/tag/business-plan/] is a written description of yourbusiness’s future, a document that tells what you plan to do and how you plan todo it. The importance of a business plan needs no explanation. Just liketextbooks for the basis for education, a business plan forms the crux of a…
    StartupTalkyAshwini

    2. Have a Written Plan Document

    If you plan to establish and handle this personally, you should have a written document that contains all about your plan. If a financial institution or professional is developing and managing the policy on your behalf, this should also include a written plan.

    This document is a legally binding document that contains all the terms and conditions of your 401k plan. So if you do not fully understand the terms, it is best to consult specialists who would assist you in identifying the inclusions of the plan.

    The best 401k providers for small business should educate you on the proposed plan. This document should contain the type of 401k plan you will be working with and its features (contribution amounts and employee eligibility).

    3. Set up a trust for Assets & reliable Recordkeeping System

    Setting up a trust for the plan’s assets ensures that the funds in the 401k account are used only by its beneficiaries. You need a trustee that would handle contributions, distributions, and structure investments.

    Also, you need to get a reliable recordkeeping system to monitor the contributions, gains, and losses, plan investments, distributions as well as general expenditures. If you want to outsource the handling of the 401k to a financial institution, they will manage the recordkeeping. Furthermore, systematic recordkeeping is crucial for annual financial reports.

    4. Decide the Eligible Employees & Inform them

    For many plan designs, you must notify eligible employees about the 401(k) plan. Your employees need to know the plan’s information, such as benefits, rights, and features. Create a summary that would contain information on employment eligibility and distributions, contributions.

    Employees must be informed about 401k plan and its features 30 days before it goes into effect. Also in future, you might also need to give notice of any changes. A summary plan description serves as the primary way to share information about your plan and its benefits to your employees.

    MSME Loan- Register your Business for MSME in 9 Simple Steps
    MSME (Micro, Small and Medium Enterprise), loans are mostly offered to start-upsand small business owners. In this intense moment of lockdown, many startups andsmall businesses are incurring a huge loss, the government offered assistance byrolling out MSME loans for startups and small business ow…
    StartupTalkyArbaaz sayed

    5. Keep eye on Compliance Deadlines

    Keep in mind that starting a 401k plan for small businesses has its responsibilities, but the benefits are worth it. Offering a 401k plan doesn’t mean “set it and forget it”. It needs regular upkeep and a close eye on 401(k) plan compliance deadlines so that you don’t run afoul of ERISA and IRS rules.

    It must be remembered that there are some recurring employer responsibilities even after starting a 401(k) for a small business. Your company needs to regularly review or revise your plan features as the company’s situation changes. Depending on your selected type of 401(k) plan, you will need to make employer contributions, report plan information, and keep up with fees.

  • 5 Ways to Make Money with a Side hustle

    There are so many reasons people take up some kind of side hustle to make some extra money. Be in a dream house, education for kids or a dream vacation, there are plenty of options out there. Yes, you have to work a little hard but that’s worth it. There is no shortcut to make money online and you have to accept that this is not a “Get rich quickly” scheme. You might have some skills, everyone does and it’s time that the skills you have made you some real cash to get you a bit more closer to your dream.

    Top 5 Ways to Make Money with a Side Hustle

    Selling items on E-bay or Craigslist
    Recycle used smartphones on Gazelle
    Driving app-cabs
    Managing Social Media Accounts
    Make money from Blogging

    Selling items on E-bay or Craigslist

    It’s true!! People actually do this for a living. There are so many real life success stories of people making some real time cash through this side hustle. It is undoubtedly one of the best and efficient ways to make money online. You can sell anything, literally anything. Old furniture, household appliances, old books, collectibles, garden equipment, you name it. It’s all possible. People are actually setting up local brands and selling products here. It’s so cheap and convenient. Ebay and Craigslist has changed the side hustle scene.

    Recycle used smartphones on Gazelle

    It’s the green tech age. And recycling smartphones is proving to be a good side hustle. If you have an old Android or an Apple smartphone at your home, you can easily recycle it at Gazelle. There are also many local mobile stores and mobile repairing centers available where you can get old or used smartphones, you can purchase them by paying a little amount of money and sell them on Gazelle with a margin for profit. You won’t be able to make a lot of money but it’s a very convenient way to make money in a short period of time.

    Driving app-cabs

    Driving app-cabs is a very efficient and profitable way to earn some extra cash. The best thing is that this side hustle provides flexible working hours that can match your busy and exhausting schedule. You can choose to drive whenever you wish.

    Why did Uber and Lyft become so popular? It’s because they are cheaper and more convenient for consumers. Taxi are expensive and they often refuse service when it’s late hours. You don’t have to face that kind of problem with Uber or Lyft. You can turn on and off your availability through the click of a button allowing you to make money no matter what time of day or night it is.

    Managing Social Media Accounts

    This is an era of internet and everything from stores to big brands are shifting their businesses online. Now almost everyone is available on Social Media and if someone really want to grow their business, they must have to be active on Social Media.

    If you can approach those small businesses or brands to become their Social Media Manager that can make you some extra money. Small businesses need a Social Media Manager because they simply don’t have the time nor the expertise to be constantly posting on and also updating their social media accounts on Facebook, Instagram, LinkedIn or Twitter.

    You can contact local companies and offer them your services for a contracted monthly fee. This is an easy way to make a living and it doesn’t matter where you live. But this hustle is not an easy one and is often very tedious as almost every company has more than one social media accounts on a single site. They can be department wise divided or location wise. Anyway it can allow you to contact a lot more clients but at the same time, it can be confusing too. So yeah, it requires some brain and expertise. But if you can learn these skills it will be the best way to make money online.

    Make money from Blogging

    Blogging is tricky and doesn’t bring in much money initially. You need to focus on your theme and be consistent about giving good content on a regular basis. All this requires a few hours daily and you’re set to go. But once you get settled, it can bring some real good money and it’s profitable too!!

    If you are just starting your career on blogging you can also start with a free blog. There are so many platforms available where you can start blogging for free like blogger, WordPress etc. Once you are able to understand how all these things work and how to write content that can bring you a lot of traffic, you can purchase your own domain and find a find a good web hosting provider because some of the free platforms doesn’t allow you to monetize your blog.

    So, that’s all for now. Here we have listed only five ways to make money online. But there are lot more ways to earn extra money. There are also many courses available online where you can learn some of the skills you needed to make money online and the best thing is some of platforms like Udemy , Coursera also offers free courses or a big discount. Time is changing and if you really want to grow fast you also have to run faster. We need to work hard to live that we dream of. Building life is a struggle and we have to do whatever we need to do to survive. And some extra cash can always help!