5 financial tips for first time entrepreneurs
The first time entrepreneur often has a lot of questions, especially regarding financial matters. There are a lot of resources to take in accounting for your new business, but some things you may not have considered when launching your venture.
Most first time entrepreneurs’ biggest concern is making a profit or in the worst case, breaking even. Some new business owners end up spending too much money on their business. We know it’s hard to resist the temptation but you should avoid this as much as possible.
Top 5 tips for a first time entrepreneurs
1. Keep Track of Expenditure
Not every first time entrepreneur will consider this, but it is extremely important. When you are starting up a business, keeping track of your receipts is vital. You will want to keep track of these receipts so that you can keep an accurate and updated financial statement. You may also be able to deduct some of these expenses from your taxes if they are considered business related.
The challenge for many first time entrepreneurs is that they do not want to feel like they are constantly spending money. You will want to keep track of your receipts in a manner that is easy for you. Many entrepreneurs simply use a manila envelope, but there are also many other resources available. You may even have the capability to scan your receipts and have them directly accessible online.
2. Hire the right talents
When you are a first time entrepreneur and you are starting your firm up there is only one thing to keep in mind. You will want to hire the right talent at the right price. If you hire the wrong person with the wrong skills, then your business may find itself in trouble.
Depending on your type of business, you will want to consider hiring employees for a variety of reasons. You may be concerned about getting into legal issues, especially if your employees have no experience. You can also be concerned that your employees may use the company’s funds in a way that you are not aware of.
You will have many questions to consider when hiring employees. You will want to consider compensation, benefits and even moral obligations. Hiring the right people can make or break your business.
3. Network with other emerging entrepreneurs
As you begin your business, you will want to do everything you can to network. You will want to meet up with other entrepreneurs and discuss your ideas, goals and finances. You will want to find out from other entrepreneurs what has worked for them. Your success will be limited if you do not network with other people in the same field as you.
The biggest challenge most first time entrepreneurs face is deciding how far they should get in networking with others. There are many risks involved, but networking can help your business tremendously if you handle it right. You will want to take advantage of all that networking can offer, whether that be an opportunity for a free service or professional advice.
4. Raise startup funding
You are an entrepreneur and that means that you will want to raise startup funding. Your business is on the edge, and you may not have enough funding to get your business off the ground. Raising startup funding can make all the difference in whether or not your venture succeeds.
Raising startup funding can be difficult and risky, but can also be relatively easy if done correctly. There are a plethora of different ways to raise startup funds for your business, but there are also risks involved if you do not choose the right way. You will want to carefully consider how you do this, as it will make a huge difference in the success of your business.
5. Over deliver to your clients
As an entrepreneur, you are always thinking about ways to save money and make your business better. One of the biggest mistakes that entrepreneurs make is not overly delivering to their clients. Many entrepreneurs become focused on their own companies instead of the client’s needs, which can be very harmful to a business.
An entrepreneur’s success will often come down to whether or not they over deliver to their client needs. You want to make sure that you do this as often as possible and find ways to do this in your business every day. Over delivering is what will help you earn valuable praise from your clients, which can lead to many good things for your business in the long run.
In addition, there are a number of things you should consider when at the budding stage of your business:
-Legal structure: Most new business owners employ a sole trader or partnership to operate their small businesses. This is a good choice because small businesses usually have low startup costs. However, it may cause problems if something goes wrong.
-Tax level: The company you register with does not determine your tax level, as the tax laws are separate from the legal structure. You need to recognise whether you are liable for PAYE or self-assessment tax.
-Payment terms: Your first payment needs to be enough for you to get started, especially if the establishment requires extensive improvements and fixtures.
-New employees: You need to hire at least two new employees when starting up in a new business. This will help you with the growth of your company and make things run more smoothly.
-Bank loans: Bank loans may be difficult to acquire, but they are not a problem if you have a decent credit history. Some banks have special schemes for first time entrepreneurs, especially when they operate small businesses.
It can be hard to start a business from scratch, especially when you do not know what you are doing. However, starting a business and getting it off the ground is not as difficult as it seems.
Start by considering all of the tips listed above and then adapt your business accordingly. At the end of the day, you will want to work hard and do your best. You may have a little more trouble at first, but by following these tips you will find that your success is just around the corner.