Running a business is more than the products and services you provide. What happens behind the scenes is just as important in determining your success. We understand that it may be more exciting to focus on products and services you are creating, but while you focus on serving your customers remember to engage with finances and operations. Doing so will set you up for success in the long-term and you’ll be relieved to grow without financial stress added to your already full plate.
Relieve that financial stress by tackling these items early on:
1. Create a budget. A budget is a tool that can support you in reaching your business goals. Setup an overall budget by identifying how much you plan to spend on each category. As you carry out the year, track expenses and compare to your plan. If needed, as you go along, make changes in your plan by reducing one category to increase another ↓↑ By the end of the year, budgeting and tracking expenses will give you an idea of the financial needs of each part of your business, which will help you in making decisions moving forward.
2. Separate your personal and business finances. As early as possible, open a business checking account and possibly a business credit card and savings account. We cannot emphasize this enough. Your business may get hectic fast and the last thing you want is to have to spend time figuring out how to separate your personal expenses from your business expenses.
3. Stick to one thing at a time. It costs money to make money. We wish that wasn’t true, but it is. While you may be excited to offer a variety of products and services, try offering one new product or service at a time. Doing so will allow you to manage your expenses and learn if the new offering is a hit among your customers quickly, as opposed to focusing on too many items and spending money on items that may not work. Pace yourself and you’ll gain so much from smaller steps.
These items may not be exciting (they are for us!), but they are necessary for your business. Think you might need support in those behind-the-scenes areas? Check out our services in business and personal finances!
