Tips for Managing Starting A Business
Starting a business comes with numerous benefits, the most notable being having total control over your income and schedule. But, before entrepreneurs reach that point, they must undertake several challenging and time-consuming projects to ensure the business has strong foundations, resulting in long-term stability and success. Most entrepreneurs need tips for managing and starting a business. Today, we will explore a few critical but rarely discussed business startup aspects.
Securing Funding
The goal of every entrepreneur is to create a self-sustainable business, i.e., one that generates enough revenue to cover costs. However, as a new business, achieving self-sustainability is tricky. Developing a solid customer base that regularly purchases your product/services takes time. As the owner, you will use personal funds to pay initial expenses.
If you don’t have the personal funds to invest in your business, you’ll need to investigate other options, like taking out a small business loan or seeking out investors. These avenues require writing a solid business plan and creating financial projections for at least the first 12 months. If you’ve never written a business plan, here is a template for your reference.
Developing Sound Accounting Practices
Managing accounting can be one of the most complex parts of running a business, but is also pivotal. As reported by PDR, robust control over numbers will allow you to keep costs in check, invest money toward the right areas, and enable the business to be profitable. However, if numbers aren’t your strong suit, don’t fret; you can delegate this task to a software, professional, or a combination of both. The evolution of Client Accounting Services (CAS) and Advisory offerings in the public practice profession is evidence of this need.
There are various accounting software products on the market made specifically with the needs of new entrepreneurs in mind. For example, Zoho for Startups provides step-by-step guidance for starting a new business. Many accounting software products offer the functionality of creating financial projections and statements within just a few clicks. Using accounting software with a professional accountant will help to keep your books balanced, compliant and your costs in check.
Establishing An LLC
Many entrepreneurs don’t realize that, by default, all businesses are considered sole proprietorships. According to Business Finance Articles, this is not the best business structure to have for the following reasons:
- As the owner, you will endure unlimited liability.
- It provides little to no taxation benefits.
- It puts your personal assets and finances at risk of litigation.
As a new entrepreneur, a Limited Liability Company (LLC) is the best business structure to consider. As the name suggests, an LLC provides the benefits of limited liability – i.e., your personal assets and finances will be safe from business-related liens or collections. Additionally, you’ll be able to use business-related expenses as tax write-offs. The rules for establishing an LLC vary significantly between states, so carefully research your state’s requirements, or count on an accounting professional’s expertise.
Creating A Marketing Plan
You may be excited about your product or service, but you must ensure your potential customers are just as enthusiastic about it. Developing a marketing plan will help you market your product/service in the most effective way possible. Your marketing plan will need to include the following aspects:
- Details regarding your target market.
- Platforms to be used.
- A budget for marketing spending.
- Short and long-term goals can be created using the SMART technique.
For example, if you plan to sell clothing targeted toward adult males, you may determine that Facebook is the best platform. You can assign a $500 monthly budget to advertise your product/services.
Last but certainly not least, ensure your business makes a great first impression on potential customers. If you have a physical building, spend some time on landscaping and your building’s outer appearance. A bronze plaque is a great way to add class to your establishment. A plaque may help convey that sense of professionalism you want others to feel whenever they enter your business or even drive by and notice your sign. Further, make your lobby area welcoming with comfortable seating, lighting, internet access, and refreshments.
Summary
For aspiring entrepreneurs, starting a business will be exciting. But you have seen why most entrepreneurs need tips for managing and starting a business. Additionally, watching the company grow and be successful will be one of the most rewarding experiences in their life. But there will undoubtedly be projects, like a few mentioned in this article – establishing an LLC, securing funding, and more that may not rank high in terms of how enjoyable they are to complete. Rather than shying away from such projects, it’s best to tackle them head-on to set the business up for success from the beginning with professional support and experience.
At K2 Enterprises, our commitment lies in providing unwavering support and expert instruction to CPAs. Explore the wealth of resources on our website, where you’ll find valuable insights on selecting the most suitable accounting software, ensuring your firm is equipped with the right tools for the journey ahead. If you work in accounting or finance, K2 Enterprises provides continuing education programs to enhance your skills and credentials. Need help learning how to solve your business’s accounting technology needs and selecting the right software for accounting or CPA Firms? Visit us at k2e.com, where we make sophisticated technology understandable to anyone through our conferences, seminars, or on-demand courses.
