Getting a small business off the ground is very exciting, but it also involves a lot of work and a pretty good output of money.
While you are understandably eager to start selling your incredible products or services to an appreciative public, it is important to get financing in line first. Then you can do everything you need to do — from renting a location, hiring staff and getting the equipment you need.
In order to help ensure that your new business will be successful, it is crucial to get your financial ducks in a row. Here are some tips to help you get started:
1. Look Into Small Business Loans
Unless you have a pretty large nest egg saved up, you will probably need to apply for some type of small business loans. Although you might be tempted to use the cash advance feature on one or more of your credit cards to get some immediate financing, this option usually includes a really high fee and/or interest rate. Instead, look into business loans from a company that knows small business financing inside and out. For example, Zinch specializes in providing fast, secure and flexible financing solutions for small businesses like yours, including offering loans for businesses with no credit.
2. Be Vigilant About Your Bookkeeping
Keeping a casual eye on your checking account balance and having a vague idea of your monthly expenses might work at home some of the time, but running a successful small business means knowing where every dollar is coming from and going at all times. By staying on top of your company’s income and expenses you will be able to keep better track of bills, vendor payments and invoices, as well as know what your most profitable products are and where you might be wasting money.
To help make this process as easy to manage as possible, consider using a cloud-based accounting service such as QuickBooks; the software will allow you to track virtually all of your company’s expenses and sales. One side note: because tax time can be confusing for pretty much anyone, let alone someone who is now dealing with small business tax laws, it is probably worth leaving tax time to a professional. Ask other small business owners who you know and trust for recommendations for a local accountant who can help you file your small business taxes.
3. Don’t Forget to Pay Yourself
When you own a small business, it can be easy to want to put all of your capital into your new company, including new products and equipment that will help your business to grow. While this is a very noble idea, don’t forget to pay yourself, too. After all, you are a vital part of the company and you deserve to be compensated like the rest of your employees. As you set up your small business budget, add in your own pay, which will help to keep your personal finances happy and healthy.
Solid Financing Can Mean a Successful Business
You might know of a few small business owners who have had to close their doors due to financial troubles. The company bankruptcy numbers were sky high in 2020 due to the pandemic. But you have worked too hard to make your goal of starting a business a reality to risk losing it over money. By making sure that you have all of your finances ready to go—including securing enough capital with the help of a small business loan—you can rest assured you will open your business on a solid financial footing.