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There are well over five items you need to tick off your to-do list if you want a new business to be successful. There are over 50. The list is probably closer to 500.
However, not all commercial preparations are created equal. And when it comes to cash in keeping your doors open … well, special attention needs to be paid. There is no faster way to doom a new business to failure than to mismanage finances. There’s also no easier way to get yourself and your family into a serious hole than by playing this crucial step wrong.
With that in mind, here are five money-related issues every new business owner needs to tackle to put their new business on a solid footing from day one.
1. This business plan is the key.
It’s 2021. If you don’t already know the importance of finely describing your entire business in a well-structured business plan, then maybe this idea should end here. While a business plan is essential in defining areas like manufacturing, marketing, deadlines, etc., it should be an entrepreneur’s opening round bible for keeping a new business on track. . By figuring out the exact dollar numbers you need to get started, meet determined growth goals, break into profitability, and more, you set the goals before the game even begins for when and where your business needs to go.
Moreover, this comprehensive business plan is also almost always a prerequisite for step 1 to get any outside investor to share your vision and support your dream. Even a family member needs to see that you’ve done your homework.
2. Business credit is your lifeline.
Businesses are not cheap to start. At least not those who plan to stay. This will almost certainly involve cash flow – and it starts with establishing proper credit for the business itself.
Without legitimate credit in place to help secure locations, source materials, and more, the business could miss out on much-needed funding and growth opportunities. It could also put your personal credit at risk if you’re not careful.
3. Set firm limits between personal and corporate money.
The personal and professional finances of a self-sustaining business should be like church and state: completely separate. Opening corporate bank accounts, lines of credit and more is how business costs and potential losses stay together in one place, protecting your personal finances from possible disaster if the business fails. not. Plus, it will reduce headaches exponentially when you or an accountant is ready to handle business taxes.
Speaking of an accountant, this is where a real tax specialist or lawyer can be of great help from the start in legally setting the limits of personal and professional funds so that there are no situations tricky later.
4. Business insurance could save your life.
You have it for your health, your car, your home, your life … even your pets. So of course insuring your business against what might happen is a must. The increase in employment lawsuits around Covid is a prime example of the unforeseen nightmares that could impact your business in the future, a problem that only protection like business insurance can solve.
From tornadoes and termites, to nuisance suits and everything in between, business insurance could be your only umbrella in the event of a severe downpour.
Now that you’ve got your business protected, it’s also time to start thinking about the same protection for yourself, if you haven’t already. If something happens to you, life insurance may be the only way your family can continue the business or get by while you are away.
With everything else already on your plate, companies like Bestow can make it easier to mark this item on your checklist, with policies that can literally be approved and proposed in minutes. By answering six quick questions, Bestow can provide a quote for 10 to 30 year term life insurance with payouts ranging from $ 50,000 up to $ 1.5 million.
The whole process is handled online without lengthy conversations with salespeople or agents. No doctor appointments either with Bestow, one of the only companies that can make immediate coverage decisions online without ever needing a medical exam. Help protect your family today with Bestow.
Life insurance quotes provided by Bestow Agency, LLC dba Bestow Insurance Services in California, who is the licensed agent. The term life insurance policies offered by Bestow are issued on policy forms LS181 and LS182, or state version, including all applicable endorsements and endorsements, by North American Company for Life and Health Insurance®, Administrative Office, One Sammons Plaza, Sioux Falls, SD 57193. Products or age ranges may not be available in all jurisdictions. Limitations or restrictions may apply. Not available in New York. Our app asks you questions about your lifestyle and health to avoid having to pass a medical exam.