There are many questions involved in the early stages of planning your own business. You don’t just need to ask yourself what you’re going to sell, how you’re going to take your product to market, or which audience you’re going to target. You also need to think about how you’re going to market yourself, ensure a profit, and pay your employees.
While all of the queries popping up at the beginning of your journey can be complex, the financial questions are the ones that many entrepreneurs struggle with most. Fortunately, the more prepared you are to handle these questions, the more confident you’re going to feel when the time comes to bring your venture to life.
Here are the questions you need to be prepared for.
How Am I Going to Fund My Company?
First, you need to know where you’re going to get the initial cash required to bring your business to life. Every business has starting costs. Even if you’re running a relatively small online brand with no specific real estate locations to worry about, you’ll still need to pay for things like website design, hosting, computers, and internet connections.
Make a list of all the expenses you’ll need to address before you can dive into your new venture, and ask yourself how you’re going to afford them. If you don’t have a huge personal savings account to help you, a personal loan could be a good idea. Taking out low monthly payment loans can help you jump head-first into your new venture without months or years of saving.
How Will I Price My Offering?
Next, you’ll need to think about how you’re going to price the products or services you’re going to sell. It’s important to do your research at this stage, because the wrong pricing structure can make or break any business. Take the time to look at some of the prices offered by other businesses in your industry, and ask yourself how your solution compares.
Remember, as tempting as it might be to try to make your prices as low as possible to stay competitive, you still need to make a profit. It’s also worth noting some people will be less likely to trust a brand if the prices are too low. You don’t want to sell your services or products short. Choose your costs carefully.
How Will I Handle Taxes?
Managing finances as a business leader isn’t just about finding the money to run your company or pay yourself. You also need to think about the cash you’re going to owe to the government at the end of every financial year or quarter.
While many solo business owners can learn the basics of tax and accounting themselves, you might find it’s easier to hire a professional to help you manage small business taxes as this is a greater undertaking. Though working with an accountant can feel like an extra expense to begin with, it’s often a good way to save money in the long-term. The right professional can help to reduce your risk of making dangerous mistakes, and ensure you take advantage of any available deductions.