Starting your own business is a little bit of a minefield. There are so many decisions you have to make, from whether you want to be your own boss, to whether you plan to do everything yourself and not outsource any pieces of the business puzzle. Starting a business sounds like a dream for a lot of people, but before you make a decision to give up your steady income and regular job, there are a few things you need to know.
There will be a lot of research involved before you start a business, and hopefully you already know this. You need to have done market researches for your product or services, but this isn’t the only research you should be doing. Unless you have an online MBA in accounting, you should be researching independent accountants to manage your company finances for you. There’s only so much you can use a spreadsheet for, and business finances are a complicated part of the business process. Check out our financial advice below for your business start-up:
- Always Keep Business & Personal Accounts Separate. It may seem like a really simple piece of advice, but it’s one that could make a huge difference to you. Most businesses that start small, in the home or the garage, also start out of a personal account. The first thing you should do as a new business is open a business account and get some sound financial advice from your bank.
- Get An Accountant. We mentioned this earlier, but the whole point of an accountant is having someone on your team who can take the finances off your hands and be the expert in managing those for your business. You’ll need a professional on your side for tax purposes, too, so make sure you interview correctly for what your business needs.
- Sort Insurance. Every business needs to factor insurance into their budget. You’d not miss out on purchasing car insurance or home insurance and this is no different. Running a small business requires you to have the right protection.
- Get A Lawyer. Starting a business isn’t just about finances and marketing. Depending on the product or service you are offering, you need to make sure you’re adhering to the right business laws. The laws you need to think about will depend greatly on where you live and whether there are any restrictions on your home, if that’s where you’re working from. Your business plan should factor in any licenses and legal fees that may crop up when you speak to a lawyer.
- Go Lean. With your business, you want to have as few expenses as possible so that you don’t throw all your money into your company and take too much time to make any profit.
Your business start-up is going to be one of the biggest things you do in life. Ensuring that you are smart with finances is just good business sense, so you have to plan everything carefully before you open your doors and go forward in business!
