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Running a small business is as fun and easy as you’d expect, and more people should do it. I’m an unabashed promoter of self-employment, not because it will make you rich quickly (getting rich quick is the wrong goal on the wrong time frame), but because it will make you self-employed. That’s my unfortunate literal tendency which I can never seem to keep suppressed for long.

Here are 11 things I wish I knew when I started my business. I hope they will save you some time, but at the very least, some anguish because - experience is a good teacher here - the sodium from your tears acts as a corrosive melting agent on all brands of premium ice cream, but otherwise, makes a superb saline for your dirty martini. Here are some of the things I wish I knew before starting my first business. Don’t try and re-invent the wheel. You do not need to invent the next revolutionary app to start a successful business. What many people don’t understand is that to be successful, you really don’t need to be unique at all.

Saverocity’s glorious leader Matt recently posted on the Forum a request for suggestions about what he should include in an entrepreneurship course he’ll be leading. I assume he’s going to include all sorts of important lessons about networking, flexibility, failing fast, and all sorts of other things I never learned.

Instead, I thought I’d share a few things I wish someone had told me before I became self-employed.

1. Immediately apply for an EIN and use it for everything

I’ve written about this before, but the fundamental lesson is this: the IRS “prefers” you use your Social Security Number for your tax and payment documents because the IRS thinks your business is going to fail. If your business is not going to fail, then it’s going to be a pain in the ass to start using your EIN in the future when you want to hire people, apply for business credit cards, open business bank accounts, etc.

Apply for an EIN immediately here, and use it for everything, the IRS’s “preferences” be damned.

2. Use (and adapt) this spreadsheet

I created this spreadsheet to calculate my own quarterly self-employment tax liability, retirement savings account eligibility, and earned income. Obviously I wish someone had given it to me so I didn’t have to make it myself!

That basic spreadsheet gets me within $2-3 of my self-employment tax liability every year.

Once you have a spreadsheet that you’re plugging your income and expenses into each month, you can start tricking it out with additional calculations. My own has calculations like the self-employment retirement plan contributions I’m eligible for, earned income (to see if I qualify for the Earned Income Credit), and others.

3. Starting a self-employment retirement plan is easier than you think

The government makes it inhumanly difficult to find, fill and file required taxes and paperwork properly. But private companies actually want your money, and make it substantially easier.

When I finally got around to opening a solo 401(k) for my business, it was laughably easy. Just download the paperwork from Vanguard, correctly identify your beneficiaries (I didn’t), and choose your mutual funds wisely.

Why start a self-employment retirement plan? Because you can contribute the first $18,000 you make and deduct that contribution from your taxable income (assuming you don’t contribute to a retirement plan at another job), plus 25% of every dollar you make after that (up to an annual limit). This makes self-employment extremely tax-advantaged compared to employment, since your ability to shield income from present-year taxes at a traditional job depends on your employer’s contributions to your plan. If you’re the employer, you get to decide those contributions, and they can be very high.

4. 92.35%, or 0.9235

For very simple, but extremely boring reasons, you never use your actual net self-employment income for anything: you use 92.35% of it (you can see this on line 19 of the spreadsheet in item #2).

So in item #3 above, I said you can contribute your first $18,000 in self-employment income to a solo 401(k) plan. I was lying. You can contribute $18,000 of your first $19,941 in self-employment income, because the federal government is waging a war on entrepreneurs and the self-employed.

5. Per diem meal deductions while traveling

When traveling for your business, you can deduct the actual cost of your meals subject to fairly complicated restrictions, or you can deduct the federal government’s “meals and incidental expenses” amount for each full day of travel and half that amount for the day you arrive and leave.

It is a pain in the ass to find these rates each time you travel; bookmark this page.

6. Every dollar you spend costs 85.8 cents or less

As you can see looking at the spreadsheet in #2, if you increase your expenses by one dollar, the amount of your income subject to tax falls by 92.35 cents, and the amount of self-employment tax you pay falls by 14.12 cents. That means the net cost of spending a dollar on your business is, at a maximum, 85.8 cents. If your income puts you in a higher tax bracket, the cost is even lower.

This discount is worth taking into account when you see opportunities that might have value to your business: what might not be worth $1,000 may well be worth $858.

Conclusion

I bragged on Twitter that I had 8 things I wish I knew before starting a business, so for now consider #7 and #8 reserved for a future post.

Starting a small business is no small decision.

But despite the countless sacrifices and challenges small business owners face, an overwhelming 84 percent of small business owners would do it all over again.

If you’re thinking about taking the plunge and starting a business of your own, there are some key steps you need to take first.

Below are some of the top tips I have given through mentoring over 1000 SCORE clients and acting as an angel investor.

These tips spring from what I see successful entrepreneurs do and what I see those who come up short not do.

Here are the 10 things you need to do before starting a business

Ready to do more business with email marketing?

1. Develop a powerful message

What customer problem are you solving that potential customers are willing to pay for? This is often called the value proposition.

Also, why will your business be operationally and financially successful?

Not sure where to start with marketing? That’s why we created The Download.

The Download is the ultimate practical, step-by-step guide to online marketing. In this free guide, we’ll show you how people find you online and how to set yourself up for success to meet your business or nonprofit goals.

2. Focus on the customer and fully understand the market

There are many examples of companies that do not have the best product/service or are not first to market, yet are very successful because they have mastered online marketing and sales.

Research the demographics of your potential customer base and understand their buying habits.

Watch competitors, talk with similar businesses, browse your competitors’ websites, and understand what their customers are saying about them on social media.

3. Start small and grow

If possible, self-fund your business idea and then go for funding when you can create a growth story. This might cause you to break up your product/service offering into smaller pieces so you can fund the early stages and get some traction and experience.

Tip:Use this advice to determine how much cash your small business should have.

3 Things I Wish I Knew When Starting My First Business Cards

4. Understand your own strengths, skills, and time available

When running a business, know when you need to engage an accountant, lawyer, insurance agent, marketing specialist, web page designer, or other professional. This will start your management process as a business owner.

Constant Contact offers a variety of professional marketing services for those who need professional assistance or want to jumpstart their online marketing efforts.

5. Surround yourself with advisors and mentors

Launching and growing a business is difficult, and more than half will fail within 5 years.

No one person can have all the knowledge, experience, or even perspective to handle every business situation. Gain from others’ skills and experiences.

6. Get a mentor

If you’re not sure where to find a mentor, SCORE is a great place to start. SCORE mentors are free — just visit www.SCORE.org to find a face-to-face mentor near you or a mentor to contact via email or Skype.

Also at this site are many free workshops, webinars, and templates all focused on helping entrepreneurs successfully start and grow a business.

You can also find mentors on sites like LinkedIn, by attending a local small business meetup, or just asking around. You might be surprised at people in your circles who can offer useful advice based on their experiences.

7. Write a business plan

Starting a business is difficult and risky; it’s easy to spend all your time and resources at it. Before you start, figure out what type of business you will have. Will it be a sole proprietorship, partnership, corporation or LLC? Then put together your plan.

Having a written plan with your projected results and personal goals is the best way to stay on track.

As an example, your business may make a $20,000 profit. But if you live in a large city, support a family and maybe elderly parents, and are trying to save for kids’ college and retirement, then most likely $20,000 is not enough.

A business plan will put your ideas in concrete terms and help you identify places to change the business model where necessary.

8. Know your numbers

Have a good grasp on the numbers that tell you how your business is doing and what you can expect. These include your start-up costs, sales, projected profits, cash flow, and much more, depending on the nature of your business and how you define success.

3 Things I Wish I Knew When Starting My First Business Account

You will be making many decisions “on the fly” and knowing the numbers — the business economics — will help ensure you make the right decisions.

3 Things I Wish I Knew When Starting My First Business Card

Look for ways to cut costs where you can. Use cost-effective tools like email marketing and social media marketing to drive awareness, rather than pricier traditional advertising methods.

Tip: Here are 10 ways to market your small business on a shoestring budget.

3 Things I Wish I Knew When Starting My First Business Loans

9. Understand there are no entitlements

Don’t underestimate this one: You will work hard for all your achievements.

Being a small business owner is one of the hardest jobs around. In a recent survey, 40 percent of small business owners said they don’t take vacations and have their money tied up in their business.

10. Have a passion for what you are doing

Being a business founder can be very lonely and there are not enough hours in the day to accomplish everything.

From big successes to large letdowns, if you’re not fueled by passion at every step of the way, your job becomes that much harder. Remember why you started your business and let your passion drive you continuously.

When in doubt, don’t go it alone

Just because you’re taking your ideas and turning them into reality doesn’t mean you need to figure everything out on your own. There are plenty of online marketing tools available to make your job as a small business owner easier. But tools aren’t everything.

To position yourself for success, you’ll need to tap into the expertise of those who are experienced in the small business world of the digital age. A good place to start is with The Download, Constant Contact’s free online marketing guide. It takes you through all the basics of online marketing, step-by-step, in a way that’s approachable and easy to understand.

Sometimes a guide isn’t enough and you need additional support. That’s ok, too! Ask around to friends and family who have dabbled in small business, go online and connect with a mentor, or if you don’t know where to start, give Constant Contact a call at 1-888-IDK-MKTG (1-888-435-6584) and speak with a marketing advisor.

You’ve got this!