I’m knee-deep in my big move so I’ll be featuring some guest posts this week…enjoy!
If you’ve ever dreamed of owning your own business, you’re not alone. According to the Small Business Association‘s website, there are thousands of people take the plunge to chase their dream of being their own boss each year. Whether your business will be online, service-based or a brick and mortar location, there are endless options for getting yourself off the ground.
Assuming you’ve already done your homework and are well-versed in the industry you’ll enter, your competition, and your understanding of the product or service, you’re ready to launch the beginnings of your business. Here are some of the tips and tricks you should remember as you navigate the journey of becoming a business owner:
Beware the Details but Don’t Get Lost in Them
First and foremost, don’t get so bogged down in so many details that you delay striking out on your own. One of the most common ways people delay their progress is to get stuck in the “perfect” name mentality. Yes, you absolutely want to have a unique name that’s easy for customers to remember and that helps them understand what your business does, but you don’t want that to delay your startup process.
Instead, choose something a bit more on the administrative side of things and remember that you can always fill out a “doing business as” form in seconds once you decide on the proper branding and marketing strategy for your company.
That being said, don’t forget about important details such as tax implications, proper paperwork filing, and adhere to sound financial practices with cash flow and expenditures. Regardless of which type of business you start, it’s wise to always have an EIN (Employer Identification Number) for tax purposes. Additionally, read and re-read any document before signing your name on it!
Mind the Money
If you’ll be taking out a loan to cover any start-up costs for your business, make sure you’re choosing a reputable bank that is offering business loans so you won’t need to worry about fraud or illegal loan practices. Before you agree to the terms of any loan, make sure you understand all of the fine print including the loan’s interest charges, hidden fees, and processing times.
Once you have your capital in place, you’ll need to have a system for managing cash flow as you move forward. A smart idea is to set up a separate account at a bank that specializes in business banking. When you establish this account, put it in the business name with the federal EIN attached and use it exclusively for all business-related transactions. Keep things simple by recording your revenue and expenses in a spreadsheet so you can focus on building the business. You can worry about more complicated and intricate accounting systems once the business begins to grow.
Remember Your Goals
When you’re first striking out, you might be awash in small details, logistics and administrative responsibilities. It’s important to take care of these things, but you also need to stay focused on your goals and why you wanted to start a business in the first place. Review your business plan, chart your plan for your first year, and draw up a timeline for the next 5-10 years. Refer as necessary to ensure you’re moving forward in the best possible way.