| Financial planning is very important to your | | | | that length of time. It often takes at least |
| business. Lack of money is one of the main | | | | a year to get established. Patience is the |
| reasons that new businesses fail. Even | | | | key to survival here. For your first 6 months |
| established businesses can collapse due to | | | | to a year reinvest any profits back into the |
| poor financial management. The golden rule in | | | | business. in this way you will be able to |
| every business is never to allow your | | | | grow and develop your business at a better |
| business to run out of money. | | | | pace. |
| | | | |
| Starting out: Make 2 bank accounts one for | | | | Financial aid: resources: there are places to |
| your regular household funds and the other | | | | get information on small business loans if |
| specifically for your business. You do not | | | | you need to take a loan offers help and |
| need to make an actual business account you | | | | places to get loans if you need. |
| can make a personal account as this will be | | | | |
| cheaper and have less fees. Start with a | | | | Start small and work up: One of the biggest |
| checking account and add a debit card for | | | | mistakes start up business owners do is to |
| paying for things online. | | | | spend too much money to begin with and find |
| | | | they simply run out of money. Be patient and |
| Allocate a certain amount of money only for | | | | start small. Start with small ads and |
| your business: decide how much you can | | | | promotions and work up to larger campaigns |
| realistically spend on your business. | | | | when you have the funds. It may take a little |
| Remember not to starve your new enterprise | | | | longer but you will be less stressed out and |
| but at the same time be sure that it will not | | | | your business will grow at a steady rate. |
| put undue strain on your household finances. | | | | |
| When you keep your business account separate | | | | Your business will depend on sound financial |
| you can keep a better control on this. | | | | management. The biggest mistake that most |
| | | | start up businesses do is not to keep good |
| Make a budget plan: Decide where you will | | | | records. You can invest in a program like |
| spend your money and how much can be | | | | Quicken to help you keep records or even just |
| allocated for each area. Make a list of all | | | | keep records with Excel charts. However you |
| the areas in your business that will need | | | | do this keep printable record so that you |
| funding. Prioritize these areas. For a new | | | | know exactly where and when money has been |
| business after the initial set up the major | | | | spent. It is useful to keep records for Tax |
| portion of your money will be set aside for | | | | purposes so there are no surprises when it is |
| marketing your business. The quicker you can | | | | time to pay taxes. |
| let your potential customers know of your | | | | |
| existence the sooner you can start to make | | | | Running a business is a very rewarding |
| money. | | | | experience. It is possible to run an online |
| | | | business very cost effectively. However it is |
| It will generally take 3-6 months to make a | | | | critical to your business growth to excise |
| profit and this will be small. Therefore | | | | caution when spending and know where every |
| calculate that you will be funding your | | | | penny is going and coming from. |
| business without seeing returns for at least | | | | |