Starting your own business is great. It’s a step towards financial freedom and the ability to be the shot-caller instead of making money for someone else. But there are a great many things that people don’t realize when they start a business that get overlooked and often forgotten.
More importantly, there are a number of different things to keep in mind when starting your business so that you can keep it moving smoothly and avoid the pitfalls that cause many businesses to fail within their first year of operation. Follow this advice and you will be getting off to a good start with your own business endeavor.
Don’t Quit Your Day Job Right Away
It can be easy to want to turn in your notice as soon as your business starts but it is important to keep in mind that it takes time as a new business owner to earn a steady income. You don’t want to, nor should you have to, live poor while your business gets all of your attention.
Keeping your 9-5 job, if at all possible, allows you to stay on your feet and not live poor while trying to get your business off the ground. This also gives you time to work out the kinks in your business so that you can avoid making drastic changes to up cash flow right out of the gates. It allows for patience.
Know the Laws
It is boring and often an afterthought, but knowing the regulations and laws in your state are important and can save you a lot of hassle. There are business specific tax liabilities, employer laws (if you hire workers), registering your business with the state, and so much more to take into account.
Failing to do this, you could face steep penalties and your business could be shut down. Take the steps to make sure that your business is compliant with all laws and regulations to save yourself the heart ache.
Know Your Costs
If there is one thing that you absolutely have to have, it is a detailed expense report. Know where your money is going, when it goes there, and how much is going there. This allows you to manage your expenses over a long period of time and to see where you might be better served spending your money. Not having an expense report is a critical error.