I have had many exciting ideas for small business throughout my early 20’s. Yes, granted I am only 25 years old now I can happily say I have a and profitable business. I have gained the knowledge and done the research to understand and carry out a successful blog and social media influencing brand. During the past two and a half years I have dived deep into understanding influencer marketing along with implementing my PR, social media and photography skill set to use to carve out a little slice of success that has helped me be able to stay home with my son while actively starting a business that has let us become more financially independent while letting us enjoy what we love as a family, which is travel.
When starting a new business it is a very exciting time, however, don’t expect it to be all sunshine and rainbows. Working for yourself comes with a plethora of up and downs, doubts and moments of insecurities. However, if you have the right mindset, the hunger to continuously grow, develop and educate yourself those moments turn into amazing works of creation into ideas that are a profitable source of income.
Over the past few years, I have questioned if my earnings were truly worth my time and effort I put into my business and after purchasing a course and educating myself about the field I was in. I finally began to not only acknowledge what I was doing was valuable. This kickstarted a spark within myself that gave me the confidence to finally financially secure my business and invest in a VERY SMART team of financial advisors who have helped me grow as a brand, see value in what I do and made sure I was legalising and legitimising my income.
5 Financial Questions to Ask Before Starting A New Business
How much does this cost?
What are your fees? Do you have to buy any products, equipment or otherwise invest in anything before launching? If there is a lot of money you will need upfront. especially if you have not tested your concept yet try to do what you need in the beginning and use as little in funds as possible. If you are under-qualified are unsure always invest in education and courses that may help you gain insight into what you’re doing a little quicker. I always have found after finishing a course or workshop I already find a way I need to be increasing my prices.
What is my Cash Flow and Capital?
Money coming into your business (revenue) versus money coming out of your business (expenses) will play a part in the steps you will need to make sure your business is successful. Your capital will be depending on what kind of investment you will need for your launch it is best practice to have at least six months of operating money on hand. It’s best to assume your business will grow slowly and setting out revenue expectations will play a part in how successful you can become.
How can you secure your personal and business finances?
Do you have a grasp on your own finances? Do you feel confident in investing in yourself? I have personally always kept a side-hustle to finance my dreams and goals so that I am securing my future for my family and the overall financial health of our household. Luckily for our family, I have an amazing husband who is a saving wizard! I had started my business with no outgoing except for labour and turned the skills I was already using into profit to which I then, in turn, invested back into what I was doing. While not each business can work this way it is essential to understand that first being personal financial security will make sure the good financial health of your business. You must make sure you are able to pay bills, build an emergency fund and save for future business goals as apart of cost for starting up your hustle.
What are your future goals?
You should set two goals for yourself including one that is personal and one that is for your business. The main rule is to have a five-year goal and a ten-year goal for personal and business finances. You will have to assess your revenue and set a goal for the long-term that gives you a visual place in which I call ” my destination station” in which I continue to ride the metaphoric train of improvement/success/education until I reach the station for a quick rest or celebratory dance, then hop back on to the next destination. Setting goals for yourself not only make sure you get a little or BIG victory dance.
Who is helping you?
Having partners, support systems and advisors is extremely important for you to network, acquire leads and potential clients for your business. If you already have something unique there is always room for collaboration. With what my business does we almost rely on collaboration and smart partnerships which is great PR! Reciprocating and liaison with others in your niche or outside is good practice when done correctly. Also, make sure that you are investing in the right kind of help from professionals that are more qualified is essential to growth…always invest in those who want to help you!
Starting a business is a lot of work, but I am here to help. Tell me what your answers are to these five questions by emailing me at firstname.lastname@example.org or help yourself by avoiding the frustration that entrepreneurs face and contact the certified CPA’s at Heaton Vences if you have any question about how to secure success in your business.
NOTICE: This blog is contributed and in collaboration with certified financial advisors.