There’s a lot to juggle when you’re starting a new business. It can be easy to drop one of those balls, but a few are critical to keep in motion, one of which is finances. Even if your business is brand new and you’re not turning over much or any profit yet, you need to keep the financial pointers below in mind.
Keeping Your Day Job
This isn’t possible for everyone. Some jobs or businesses are just too demanding. Some day jobs write into the contract that you can’t moonlight or that any intellectual property you create while employed by them belongs to them. However, if none of these things are true, you may want to consider keeping your day job at least in the early days. This removes some of the financial pressure and allows you to ramp your new business up slowly.
There are many different ways to get funding, but not all are appropriate for all kinds of businesses. Venture capitalists and angel investors are looking for a company, usually tech-based, that will make them a lot of money. The one potentially helpful source could be Accion Opportunity Fund small business loans. Additional benefits besides the money include access to coaching and educational resources. You can also be connected to support networks in both Spanish and English.
Staying on Top of Finances
Staying on top of your company’s finances can help you stay stress-free, and from day one is critical. You may have a bookkeeper or accountant in charge of this aspect, and it’s not a bad idea to work with a professional if you don’t have time or this isn’t your strong point. However, it doesn’t absolve you from knowing what’s happening with your company’s money, not just on a yearly, quarterly, or monthly basis but from day to day. Conscientiousness now can save you from unpleasant surprises later. Be sure to stay on top of your tax payments. In addition, have some money set aside. In the early days, you may run into cash flow problems. These are easily solved if you inject some money into your business to get through but can be disastrous if you’re stretched too thin already.
Invest in Yourself
Another thing that can be easy to forget is setting aside money for retirement. If you’ve got a company up and running with employees and a retirement plan, then you may want to be part of this plan, but if you’re a sole proprietor or a small business that doesn’t offer this benefit, be sure to create a plan for retirement savings. Several options include a simplified employee pension, a 401(k), or an IRA. A financial professional may help you sift through the options and determine which is best for you. You may also want to consider whether you need to take any steps to ensure that you are not financially liable on behalf of your new company.
Featured Photo by Jason Goodman on Unsplash