Focus on Financials
The financial aspect of running a small business can seem daunting. Nevertheless, a hard task can be tackled effectively with a little bit of direction. In entrepreneurship, the financials include everything from funding to simply keeping up with day-to-day tasks. Here are some tips that can help you get started.
Separate Your Accounts
The most important thing we can suggest is to keep your business and personal finances separate. If you want to be serious about your small business, then you must realize that it is a separate legal entity. Mixing business and personal finances is a bad idea from the get-go. It can be difficult to obtain business loans. It makes missing tax deductions easy and deciphering year-old transactions hard. Dividing and conquering is key to small business success.
The first step when starting a business, and the one that tends to hold people back, is funding. How will you raise enough capital to start your business and keep it going? There are so many options available to you when it comes to money. Here are a few of our favorites!
This kind of financing comes from investors who see potential growth in your business and who hope to be a part of that growth moving forward. In addition, VCs are often times taking a risk when they invest. If they choose to help fund your business, they may request to make business decisions or even become part owner, so keep that in mind. Grand Rapids has several venture capital firms, check them out.
This method of raising capital is popular right now as it involves spreading the word through social media or other online platforms. Sites like Kickstarter or Payitt2.com allow your small business to gather small investments from several people.
These type of contests allow you to pitch your business idea to a panel of judges. It can be a fun way to meet others, be involved in the community, and potentially secure a grant to get your business started. Start with monthly 5×5 nights or look out for other GR pitch competitions.
We suggest QuickBooks Online, and we often have workshops on how to use it, so keep a look out on our events calendar! The next one happens this November. This allows you to go paperless and keep track of all the important things like invoices, bills, tax filing, payroll, and more. If you have any questions about QuickBooks or the importance of keeping track of these pieces of bookkeeping in a unified system, contact us.
Although there is a ton more to the financial aspects of small businesses, these are some of the important ones, and we hope that this information helps get you started. If you have any further questions, do not hesitate to reach out. We are here to assist any way we can.