Many start-up founders looking for capital run out and pitch their opportunity to anyone who will talk to them. I get it. However, unless you are strategically targeting the right type of money lender, your fundraising efforts may be in vain. So, how can entrepreneurs who want to start a business find funding? Well, the struggle for many entrepreneurs is that they don’t understand which path they should go down in the first place. Should they go to lenders for loans or seek investors? It’s important the know when funding a startup business the pros and cons of each.
When starting a company, the business structure you pick can be vitally important. Choosing among the different business types will affect your day-to-day workings and how you pay taxes. Your choice can positively or negatively affect how you are protected as an owner and even your business’ future sellability. While I will provide you with an overview of the 5 different business types, lean on your “Dream Team” of attorneys, CFP’s®, and CPA’s to know which entity is the best fit for your company.
I know you’re excited to start your business. You may be thinking, “Come on, Justin! Enough is enough. I’m tired of this prep work. Let’s get down to business.” Well, time out. Before hitting the hardwood, you need to assemble your team… a professional advisory team of players to help with technical matters. You will need to establish your business as an entity, get advice about tax issues, seek loans from investors, on an on. You will need professional help from these highly educated and professional business advisors.
When preparing your personal financials for business ownership, you need to do a personal financial assessment. Determine whether you are asset-rich or asset-poor, then make needed adjustments to increase your net worth. While you’re examining and increasing your net worth, you also need to increase your personal cash flow. Not only do you want to increase assets and decrease liabilities, you want to increase income and decrease expenses. Don’t just prepare a financial statement. Build your personal budget. Then, use what you learn to decide what changes you need to make to your personal finances before you start your business.
As an entrepreneur, you have a BIG IDEA and you’re ready to “charge hell with a water pistol.” You have a product or service, you see an immediate need, and you don’t want to waste a second to meet it. That’s who you are as an entrepreneur. But it’s not time to start the battle just yet. It is senseless to brandish water pistols if you don’t have a reservoir of water to refill them. You need to build and fill a financial reservoir in your personal life so that you have enough to sustain your business life. Therefore, I invite you to sit down on a cushy couch and listen to my “Grandma’s Wisdom.” I’m going to help you prepare your personal financial assessment as the first step in building a financial plan for your startup. So let’s get started crunching the numbers and see how they affect the financial plans […]
When you set out to become a business owner, I highly doubt you ever thought you’d consider giving up; yet, every day small businesses fail. While I can’t prove this, my personal opinion about why so many fail has a lot to do with the lack of a certain “B” word I’ve talked about repeatedly here at Financially Simple—budget. Yes, you read that right. I believe one of the greatest failures new small business owners can make is failing to build a business budget.