When starting a business, one of the biggest mistakes we see people make is how they manage their finances. They operate outside of their means and end up with multiple payments they can’t make. Below are a few quick tips to get you started on the right financial foot in your business.
You should split your business 70/30.
70% to operate on and 30% as your payout. We see new business owners flipping this way too often.
Plan your expenses are your budget, not the other way around.
It can be really tempting to say yes to everything and worry about the money later. Don’t make this mistake.
Save for your taxes!
So many business owners spend every last penny they have and totally forget that April 15th is coming whether you like it or not. Make sure you’re putting about 20-25% of your operating expenses back every month. This will give you the padding you’re inevitably going to need.While we understand the need to make money quick, you can bankrupt yourself before you even really get started if you aren’t careful. Make sure you are planning for what your next move is going to be and know that a sustainable business isn’t built overnight.