Financial planning tips for new entrepreneurs
After working for many years and gaining immense knowledge/contact within their field, everyone thinks about starting their own field. You may be not getting the professional freedom from your bosses or you just want to be your bosses and make your own destiny. Your 9-to-5 job is becoming less and less satisfying for you. Therefore, being an entrepreneur may seem like the right way to you. Whatever maybe the reason, establishing a new business is always the biggest and best step for a professional. So before making such a decision make sure you have a rock solid financial plan for your business venture.
My friend “Harish” who is a lawyer recently read an article on Maule Davis and Robert Bozeman. Attorneys from Decatur who took such a step and started their own firm called Georgia-based Davis Bozeman Law Firm in 2007. They both graduated in 2002 and 2001 from Georgia State University College of Law. Initially both started working at some of the biggest law firms in the area. In 2004, Davis left the company and decided to establish his own firm.
For around 2 years Davis practised solo and later Rob decided to join him and they created the Davis Bozeman Law Firm.
Harish was quite inspired by Davis and Bozeman. He asked me to give him some advice on establishing and planning a business successfully.
Here are some of the basic steps that each and every professional should consider before starting a business:
There are important steps you must take before starting a business. Read on for tips on how to successfully make the transition.
- Establish emergency savings beyond the traditionally recommended amount.
I would always suggest that before opening a business, every businessman should have an emergency savings. This will help you survive the time from starting up till the time you start making profit.
- Reduce spending.
Control your business spending. Spend only when there is a possibility of returns. Plan your investment marketing strategies.
- Work with a team of financial professionals.
Having some with a great financial experience is always beneficial for your team and company. This will help you to plan your business activity properly.
- Have a risk management plan in place
Start creating risk management and recovery strategies. I would recommend that you get insurance and claims that will safeguard your future.
- Keep business and personal finances separate.
Often businessmen use their personal account for their business needs. So avoid making such mistakes.
These were some the most common tips for new entrepreneurs. Hope that this post was beneficial to the readers. Feel free to comment and share your tips for starting a new business.