Whether it has been a lifelong dream or a way to take your career to the next level, starting a small business is a huge undertaking and one that shouldn’t be taken lightly.
Starting a business often means diving deep into the unknown – planning, making important financial decisions, and navigating a legal and financial system with which you may not be familiar. Although it may seem daunting, running a business can offer independence, flexibility, and personal fulfilment. Exploring cheap recruitment methods is one such rule, as it can significantly reduce initial overhead costs, enabling more efficient allocation of resources and facilitating the early stages of growth. But it all begins by following some basic rules to get off to the right start.
- Create a business plan. A simple plan will help you set real milestones, including short- and long-term goals. Define the types of services or goods you want to offer, the types of customers you want to attract, and related expenses, including the cost of production, marketing, memberships, and other items relevant to your business.
- Get set up right. Incorporating your company is an important step in keeping financial and legal liabilities away from your personal assets. It doesn’t cost a lot, but knowing how to properly classify your business to yield greatest tax efficiency is important. A financial planner can help get you off to the right start.
- Think big, but don’t spend big. Perhaps one of the biggest pitfalls is spending money on overhead items you may not need. Is renting an office necessary or can you work out of a spare room? Do you need major office equipment or will a trip to the local office supply shop do for now?
- Go virtual. If you need office help, but can’t afford hiring an individual, look into hiring a virtual assistant or low-cost temp worker to help you during busy times. This will increase manpower, without draining your budget.
- Establish a support system. Find professional service providers who can help you navigate the business world outside of your specialty area. A savvy accountant can help you keep your books in order. A financial planner can help with cash flow, tax planning, and contingency preparation. An attorney, usually together with a financial planner, can help poise your business to either be sold or passed along.
Bill Kelso, CPA, CFP®, is a financial planner* at Pinnacle Financial Advisors, which assists individuals, families, and businesses with financial planning and wealth management in Sedona and the Verde Valley. He is a Registered Representative offering Securities through UNITED PLANNERS FINANCIAL SERVICES, Member: FINRA, SIPC. *Advisory Services offered through SEROS FINANCIAL, LLC. Pinnacle Financial Advisors, Seros Financial, and United Planners are independent companies.
