I talk to people often who have recently launched their own business start-up or are considering doing so. Here are a few things you should consider in your business, if you’re going to start well. I have also added some links with more information in case you are looking for guidance in specific areas.
1. Keep records.
As a business start-up, when you are first starting out, it can be cumbersome to keep track of every decision, piece of paper and receipt. But going back and recreating those things when you need them weeks, months or years later can be much harder. I suggest identifying a good online storage solution: Evernote, Google Drive, and Dropbox are three. You don’t have to create a massive folder structure; just scan items into a file, label it with what it is about and stick it in a “Stuff I Might Need Later” folder.
- Organizational Documents, especially any that outline the key ownership agreements
- Contracts or Commitments to Clients or Employees
- Setup paperwork on any vendor relationships
- Financial Records (more on this next)
2. Know the numbers.
Finances are the life blood of your business start-up. If you don’t have money going in and out (hopefully more in than out), you won’t sustain your business for very long. More money in is usually the goal, but you need to track what’s happening in your business financially.
- Get a separate checking account.
- Setup your basic financials (this is a natural place to get help if you are less confident, but you should still review these regularly and have confidence in what you see).
3. Get help.
At some point, along the way, you are going to need help in your business start-up. Either team members who can do work in your business or outside counsel who can help you with areas you aren’t strong: legal, tax prep, etc.
- For your team, should you hire an employee or engage an independent contractor?
- When it’s time to pay your team, I recommend using a payroll service. Even a low cost solution, like this one, will save you headaches related to tax filings.
If you’d like more input or guidance on this, feel free to review this checklist or drop me an email (eric@amservicesgroup.com).