You’re Likely here on this page because Corporate America or your current methods of creating and generational wealth and income is just not working out and your looking to start your own company. Well guess what your in the right place. Follow these 4 and many more of of tips and tricks and get started today.
1. Have Financial Start-Up Budget
Don’t be shock if your first couple months of financial reports show far more debts than incoming profits.(Im serious on that one) Even if you have your first client immediately, it can be 30 days before you invoice, with some net payment terms stretching out well over to 60 days. That might mean 90 days before any money starts coming in. SO PLAN AHEAD!
Prep your company by starting with enough start-up funding to keep your business running for approximately three months without income depending on business needs it may be more just know its okay to self finance. Remember, building client relationships and credibility from the start will be more valuable and worth your brands reputation than quick cash in the future. This is a “Marathon” not a “Sprint” so to speak
2. Prepare for unforeseen events
When operating your own company, always expect the unexpected, a cliche saying i know but its 100 percent true. It is very important to continue to be optimistic and confident about your business, it’s also wise to expect that there will be times when your revenue is unexpectedly cut or delayed.
You can run into clients and vendors who are unable (or unwilling) to pay their bills, emergency replacement or broken technology, or an unexpected slow down of new clients, projects, or opportunities. To factor this, I recommended to Keep at least three months’ or more worth of regular business expenses in company only account.
3. Factor in Investments and Equipment
Your operating costs will include repeat expenses such as utility and Internet charges, project supplies, and subscription-based invoices your plan to incur . In addition to these monthly and annual costs to your budget, I would bet there will be a number of initial purchases to consider as well.
Tech such as a computer, printer, or scanner, as well as software or office/Studio furniture if you have one, are now items that you are responsible for as a self-employed individual. While these initial investments may be a one-time out of pocket expense, they do add up very quickly depending on which industry you’re in, so make sure they are a part of your budget considerations. (You can always upgrade later)
4. Prioritize Initial Expenses
Don’t forget, your main financial focus should be on booking your first client. There will be many of opportunities to grow your budget as your business grows. When prepping your First financial budget and business plan, it’s important to realize that some expenses you really want to have are just that, wants, and can wait until your business is more established.
For example, the significant expenses involved with renting an work space can be delayed or even permanently eliminated by working out of a home office or by joining a coworking space. Likewise, marketing expenses can be put off in your early planning stages and reconsidered as your business develops and the growth of your company demands it.