The coronavirus pandemic changed a lot of things, and if it changed your plans to start a business, you may be wondering if you should ever move forward. The truth is that yes, you should, and now may be one of the best times to do just that! Here are some tips to think about before you dive into the world of business.
Hiring a CPA makes sense if you are a first-time business owner. You not only have access to payroll preparation and bookkeeping, but also your accountant can help guide you in ways to best spend your working capital. They might, for example, help you understand the amount of equity you’re giving up and remind you not to get in over your head if you plan to use your credit cards.
When you do have enough capital to get started, your accountant and other team members can help you best evaluate how to spend your cash flow. Often, what makes the most sense is investing in inventory and marketing. You may also need to put some money into the process of incorporating your business.
Your CPA can also walk you through financing, which may be a bit more difficult to do as a start up, but, if you can get approved, you’ll likely enjoy low rates. Make note of the type of loan you need. There are a few different types of loans that work for businesses. These include a bank loan, SBA guaranteed loan, line of credit, equipment loan, merchant cash advance, or invoice financing. Each has their pros and cons, though it pays to get to know your options before jumping into a financing situation.
Maintaining your books is absolutely essential to the success of your business, which is why it’s important to stay on top of your bookkeeping needs, from taxes to payroll and everything in between. If you’ve decided against hiring a full-time CPA to help manage your finances, you can hire a freelance bookkeeper to strictly maintain your financial records. Do some research into bookkeeping services pricing to ensure this makes financial sense for your business.
Help is available
It’s important to work with a team of professionals to help you throughout your launch. Resources you might utilize include a real estate broker, property insurance, health insurance, or someone to assist with entity and document creation. You may also want to put together a sales team for your business. If you plan to hire immediately, you may also want to reach out to a professional recruiter so that you can ensure you have the best people on your side.
Many entrepreneurs quickly learn they can’t cross off every item on their to-do list on their own, but don’t have the budget to hire a full-time assistant. These specialists take care of all of those important-yet-tedious tasks on your agenda, be it answering calls and emails, filing expense reports, or updating your personal or professional calendar. Because we work remotely, you don’t have to invest in equipment or other employment expenses, like benefits. For this reason, our virtual assistant services are affordable to every small business owner.
Marketing is another important element of keeping your business top of mind for potential clients or customers. The easiest and most affordable way to begin a marketing strategy is through digital marketing tactics. This includes website optimization, social media marketing, pay-per click ads, email marketing and even content creation. You can find a freelance specialist to help you with these marketing must-dos by searching online job boards. To save some money, address the marketing issues you can handle yourself, such as creating an eye-catching logo for your business. You can use a free logo maker to create something that reflects your brand.
Business closures often mean liquidated assets. This can benefit you as you try to open your own company because it gives you access to tools, equipment, inventory, and accessories at an ultra-affordable price. Businesses often choose to liquidate when cash is a problem, which has been an unfortunate reality throughout the pandemic. If you are in one of the hardest hit industries, like the restaurant business, then you should have no problem finding the exact equipment you need.
It pays to keep it in perspective that starting a business is always a daunting task. Whether you do that in times of economic upswing or a downturn, there will be challenges. Having the right people by your side and knowing how to spend your working capital are just two things you can do to make the process a seamless one no matter when you turn on your open sign.
Written by Contributing Author, Tina Martin