Starting a business is a huge and exciting step in your career. If you’re at this crossroads, congratulations! Now the first thing you want to do is take certain steps in order to set up your business for success, avoiding common pitfalls. That’s where we come in.
We’ve compiled a list of five things you can do to help your startup from day one.
1. Set up a financial cushion
Even if you’ve created a detailed business plan and calculated your projected profits to the dollar, it’s crucial to have a cash flow cushion. The truth is—unexpected expenses pop up. And you may not be able to acquire customers at your projected pace. That’s why it’s a good idea to have some funds to fall back on. Make sure to factor this into your initial startup loan plans so that you request the right amount of funding.
2. Set defined goals for your business
When you’re considering your goals for this new business, you may have the long-term ones set—like expanding your customer base and advancing your career. But what about short-term goals? Have you given thought to the more immediate measures of success? Clear, short-term financial goals are just as important as big-picture ones. Make sure to set and document monthly, quarterly, and yearly goals to keep yourself on track. Check on your progress regularly and adjust these goals as needed.
3. Create separate business and personal accounts
Set your business up for success by keeping your personal and business finances separate from the start. Maybe you’re thinking you’ll wait until you’re already generating revenue to create a separate business account and apply for a business credit card. This may not be your best option. Keeping everything separate from the beginning can save you from future headaches.
4. Review your finances regularly
Prioritize your finances and regularly reassess your budget and goals—especially in the early stages of your business. This can help you establish a positive routine by the time you’ve gotten into the swing of things, so that your finances don’t fall by the wayside.
5. Ask for help when you need it
If you feel overwhelmed by the financial aspects of starting your own business, you’re not alone. Don’t be afraid to ask for help. Nobody expects you to be an expert in what you do and a financial wizard—unless maybe you’re a CPA to begin with.
Whether you enlist a professional financial advisor or CPA or seek out a mentor who has been where you are, don’t hesitate to ask questions and request assistance.
By knowing what to do, you can start your business off on the right foot. If you’re looking for financial solutions to secure your business, BHG Financial has worked with hundreds of thousands of professionals like you to achieve their goals by providing large loan amounts, fast.
Want to see what our financial solutions could do for your startup? Call our team to learn more or see how affordable your business goals can be by using our free Payment Estimator below.