I feel like I have been talking non-stop about money lately on the site. However, it has been for a good reason. Becoming knowledgeable about your business finances is important. Personally I believe, it’s easier to digest hearing about certain topics from another women versus a man who may belittle you or make you feel bad. I want to educate millions of women on how to run a business that grows and can change the world.
Now with that out the way lets talk about understanding the dollar and cents of a small business. Money management starts long before the first customer walks in your brick and mortar door or virtual door way.
Have you thought about the actual figure it would be to launch your dream business? When I first launched my resale boutique I knew opening an actual store front was not going to happen. Not having the experience or collateral it just wasn’t the right time with banks because of our 2009 economic down turn. Opening an online store does cut a plethora of your expenses down, but you still have a multitude of them depending on your business. Do a simple Google search on the average cost of launching your particular business. A retail business is going to be more expensive than a consulting business.
What is it going to cost to run your business monthly? Operating cost can run the gambit of product, material, web hosting, website maintenance, hiring freelancers, contractors, marketing, insurance, SEO and much more. You need to know what it cost to run your business yearly, quarterly, and monthly. It’s about understanding the dollars and cents of how your business is operating on a day-to-day basis. Even cutting expenses. One great thing I love is, at the end of the year, companies I used to help run my business run promotional deals. For example Go Daddy Bookkeeping, formerly Outright, offered a $49.99 yearly special versus the $119.98 I would have to pay regularly. That saves my company $69.99 this year.
Where does all your money go once you make it? Hopefully, its going into your BUSINESS’ checking and saving accounts and nowhere else. To be quite frank, I am always baffled when people say they don’t have either one of these types of accounts. Yet, they have been in business for years. The quickest way to get audited by the IRS is by mixing your money. Most banks or credit unions allow you to open an account with only $25. That’s all it takes to get started. Once your account is set up you can link it to your payment gateways and money will be either automatically transferred; Stripe and Etsy do direct pay or you will need to transfer it the way PayPal makes you do.
A great tool to help you understand where your company’s money is going is the Small Business Finance Budget Worksheet. 61 pages all about your companies money. You can track your goals, sales, expenses, budget, and much more.
As stated earlier there is a plethora of content on money management that you should definitely check out. How are you feeling about your future business or current? Do you have a grip over its finances?
Photography image by Teddy James