Don’t Skip Over This Advice When Starting a New Business
Starting and running a business certainly has its challenges, yet day after day, new entrepreneurs decide to follow their dreams and turn their ideas into a startup.
More than 32,000 new business startups are predicted by the U.S. Census Bureau. The agency says the projected business formation (within four quarters) for June 2023, adjusted for seasonal variation, is 32,148, an increase of 4.0 percent compared to the projections made for May 2023.
Also, business applications for June 2023, adjusted for seasonal variation, were 465,906, an increase of 6.2 percent compared to May 2023, the bureau shared in a mid-July data release.
With World Entrepreneurs Day on Aug. 21, take a minute to celebrate entrepreneurs everywhere for their innovation, tenacity and the jobs created and other economic impact their businesses have on their communities.
If you’re a new entrepreneur or considering becoming one, check out these helpful tips for small business owners and startups.
Be Real About Startup Costs
To launch successfully, entrepreneurs need to understand their expenses before starting the business.
It’s essential to calculate what bills you’ll need to pay before you open your doors, advises the U.S. Small Business Administration. Further, the SBA says figuring out your startup costs also can help you estimate profits, conduct a break-even analysis, secure loans, attract investors, and potentially save money on taxes.
Look at what it will cost to buy equipment and supplies, licenses, permits, office space, utilities, website creation, insurance, and legal and accountant fees -- all common expenses for setting up a new business.
Other costs to assess will depend on the type of business type and industry, i.e., if you’re starting a brick-and-mortar business, online business, hybrid, or service provider. There will be expenses you’ll be able to see clearly, such as permits and licenses, which are publicly defined by your state, city, and other entities.
However, there will be costs to your startup that are not as readily available, so seek out more information through specific vendors and providers for expenses specific to your needs. Also, talk with mentors, and other small business owners in your community and industry to identify other possible startup expenses.
Set Up Reliable Business Internet
A strong online presence is crucial for every small business, so get high-speed business internet service set up and running to help future-proof your operations.
Reliable, fast internet paves the way to increased marketing opportunities and productivity to successful sales and growth. Find a provider that can offer your business internet that matches your startup and future needs, allowing you and your employees to work on multiple devices without lag, and customers get uninterrupted access.
Open a Business Bank Account
Your personal and business finances need to be kept separate. “The best time to open a business bank account is before you accept the first payment for your company’s goods or services,” advises a post by Business News Daily.
In addition to the professionalism it shows, a business bank account allows customers to pay you with debit and credit cards and can offer perks, such as purchase and personal data protection for your customers.
To open an account, most banks require you to present a business license and a federal tax identification number -- either an employer identification number (EIN) or a Social Security number if you’re a sole proprietor and other personal identification documents.
Start Establishing Your Business Credit
Even if you don’t need financing currently, experts and experienced entrepreneurs advise paying attention to business credit now.
The SBA says that establishing and managing your business credit can help a company secure financing when/if needed down the line and with better terms. “It can also help you negotiate supply agreements and protect against business identity theft.”
One way to help establish a credit history is to set up a line of credit through your business banking account for emergencies or to finance an equipment purchase. Also, consider getting a business credit card account.