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September 2012 - Posts - Dollar Stretcher Guest Blogger
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September 2012 - Posts

  • 3 Simple Financial Survival Tips for New Business Owners

    by Eliza Morgan

    If you've recently started your own business or are in the process of starting one up, you may be wondering how you'll manage your finances. It's not always easy to get a successful business up and running without getting yourself into financial trouble. Fortunately, there are things you can do to avoid financial ruin and set yourself up for monetary success. Here are three simple financial survival tips you should keep in mind as you embark on your adventure as a newbie business owner:

    1. Don't bite off more than you can chew

    This should be the cardinal rule for new business owners. Just as you shouldn't take on more clients or projects than you reasonably have time to commit to, you also shouldn't invest in anything you can't truly afford. As a small business owner, you may have to take out loans when you're just starting out. This is understandable and perfectly fine. However, if you don't think, after looking at your business plan, that you'll be able to pay off those loans in ten years, it's time to rethink how much you borrow and how you can save on your startup costs.

    2. Don't plan for immediate success

    Look at the financial facts and figures when it comes to other businesses in your niche. How long does it usually take them to get off the ground? How much is their average revenue? Few businesses are overnight successes. So, don't plan to make six figures within the first few months of opening up your business. And don't book a family trip to Europe on credit, assuming you'll have enough money to pay for it when the time comes. Business is uncertain, especially in this economy. Ultimately, you can't really depend on any kind of financial security as a startup owner. You just have to cross your fingers, do your best, think strategically, and plan for the worst while hoping for the best.

    3. Hire a CPA

    As a small business owner, your finances are probably already pretty tight. When it comes time to do your company's taxes, don't skip out on hiring a CPA, however. Business taxes are a lot more complicated than personal taxes. You'll need an expert to help you navigate the system and save the most money. Qualified accountants know a lot of legal loopholes that will help you out in the long run. Spending $1000 on a CPA could end up saving you thousands of dollars. Plus, not having to worry about your business taxes will give you extra time to worry about all the other important, business-related matters.

    Running a small business isn't easy, but it sure is rewarding. Don't make it any harder on yourself by not paying attention to essential financial details. So, follow the tips above, think about your bottom line as much as possible, and avoid financial mishaps!

    Eliza Morgan is a seasoned writer and freelancer who mostly writes about business, the economy, and the labor market, when she's not writing specifically for www.businesscreditcards.com. Send your comments and questions for Eliza to elizamorgan856@gmail.com.

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