As the new year kicks off, you’ve probably set goals for yourself that you’re excited to work towards. If one of your 2018 goals is opening a new business, financially preparing yourself for everything that comes along with becoming an entrepreneur and business owner is important. Here are a few ways you can financially prep yourself for a new business.
Prepare for Behind-the-Scene Fees
Whether your company will be web-based or have a physical location, some unexpected and high fees, include trademarking your company name, filing permits and licenses or becoming a limited liability company (LLC). You may be excited to get your idea off the ground, but do research on your state’s fees and exactly what you need legally to start your business.
Consider Your Funding
Decide early if you’re going to use your own investments or use lending resources. Consider reaching out to other sources to help with the start-up fees. Your options include crowdfunding, government grants and loans from the Small Business Administration or banks, and even family and friends.
Note: Consider loans as a last resort! It’s better not to start with debt.
Set Up Your Business Account
Once your company has a name, open up a business account. Yes, separate the business from your personal account. Get into the habit of keeping funds separate. Make sure you also learn about the differences between your personal credit card and your business credit card.
One difference: Business credit cards have higher limits.
Talk to a Tax Expert
Many business owners are caught off guard by the taxes that come with being a business owner. Talking with an accountant before opening your business will give you a better understanding of how business income is taxed and what to expect.
The Little Things
Don’t forget about the little things that go into your business. Opening a retail store? Add hangers and racks to your budget. Will you be needing things like printers, customized letterheads, Wi-Fi, and digital software? Be sure not to forget the small things that are essential to your business.
Starting a new business can be both exciting and daunting. It’s important to make sure you’re prepared financially for your new endeavor. If you need help setting up your accounting software or managing your books, contact us! We also offer one-on-one trainings.
Good luck to all you aspiring business owners!