There are a number of things that you need to do before starting your new business. In this blog, you will find out about a few basic things you need to know about the financial side of your business. If you have been sitting at home wondering how you can start your business take some advice from us.
Money Money Money
Money tends to be the main issue on every startup’s mind. It can be a costly activity transitioning from your old job and venturing into your new business. This is the moment you need to be the smartest with your finances, otherwise, it could turn pear shaped. More often than not, you’ll be wondering how much you need to start up. Take a moment to sit down and write out all your upfront and fixed costs. By keeping your costs low at the start, you can begin your venture stress-free (well, moderately)!
Keep Track Of Cashflow
Keep track of your finances! This is something we try to drill into all startup businesses. Create a document that can efficiently track all of your incoming and outgoing money, so you can always see where your business stands each month and are never left with your mouth open wondering where all your money went!
How Are You Funding Your New Business?
You may have all these dreams and aspirations for your business but the reality is, do you have the funding to make it happen? There are many options to consider when determining your funding options for your new business, these include
- Obtaining a business loan from your desired outlet
- Gauging interest from investors
- Funding your business via your own personal savings
- And more..
The right option for you is always difficult to decide. If you need further advice or guidance with which direction you should take, we are the perfect team to speak with. We will guide you through the entire process to ensure you make the right choice during these crucial, early stages.
Never Mix Business With Personal
We aren’t talking about your lifestyle, we are talking about your banking and finances. Something that you should implement from the inception of your business is to separate your business bank account from your personal. By having them separated, it is much easier to see all your business activity happening in one spot, rather than having the confusion of your personal accounting being mixed in with all your business expenses.
Goals setting is a great habit to implement into your business to ensure you’re hitting financial milestones that you want to reach. By having a physical goal laid out in front of you, it becomes easier to set a plan on how to achieve it and then finally, obtain your goals. Ensure your goals are always SMART (Specific, Measurable, Attainable, Relevant, and Time-Bound).
In Case Of Emergencies
What happens if your business hits a financial low, do you have the funds to back it up? When this happens, it is always handy to keep a backup fund within your business. By having the ‘back up fund’ you’re able to help boost your business’ finances on those rainy days when the outgoings outway the incomings.
Consult A Professional
Now that you have read all of this and understand the basic financial needs for your new business, it’s time to consult your financial professionals, Wright Koziol. We are able to help you understand all there is to know about small business finances, obtaining loans, tracking your cash flow, budgeting your money to ensure all aspects are covered and much more!
Contact WM Wright & Co for all your accounting needs, we are the right choice!