- April 28, 2018
- Posted by: Asif Rahemtulla
- Categories: Bookkeeping, Business
You have talent and a great idea. Now you’re ready to start your own business. Congratulations! There are a lot of great reasons to be your own boss, including making your own schedule, designing your own business plans, and expanding at a comfortable pace.
Before you get ready to open your doors, however, you need to make sure you’ve thought through all the logistics that new business ownership brings.
1 / Fees
Starting up a business comes with some fees that you need to factor into your budget. Things like registering your business with the government, obtaining a local business license, website development and hosting fees, monthly bank account and credit card charges, and leasing physical storefront space all come with associated costs. It’s important to be aware all your start-up and recurring fees, so that you aren’t taken by surprise.
2 / Accounts and Credit
It makes life so much easier if you have separate bank accounts and credit cards for your business. Using your personal accounts for business purposes (which is a BIG NO-NO) muddies the waters and can create an audit nightmare. Many banks have low fees for small businesses or entrepreneurs, and the hassle it will save you down the road is more than worth it.
3 / Accurate Books
Starting a business with up-to-date books will make all the difference. Find a reputable bookkeeper or invest in a good quality accounting software and start your books off right. Document your relevant business accounts, your start-up capital, your expenses, your assets, and your liabilities. Then make a plan to keep those books reconciled each month.
4 / Decide Your Business Structure
Sole proprietor or corporation? There are benefits and drawbacks to both and knowing which setup you need will prevent you from having to restructuring early on in your business venture. It’s always a good idea to consult with a professional when deciding how to structure your business. As with most things, there is no one-size-fits-all, and what fits your business best will depend on several factors.
It’s exciting to get your business off the ground! The logistics of its setup may seem less thrilling, but being intentional about them will help prepare you for success.