Finances to Think About Before Starting Your Own Business

Starting  your own business has been something you have spent countless hours  planning. You know what it is you want to do, have the necessary  experience and are ready to give it a go. Running your own business can  be a great advantage to a single mother, but it can also be very hard.  Before you quit your day job, there are a few financial issues you need  to think about.

Permits, Licenses and Taxes

Many people do not realize that almost every business needs a permit  or license to have a business in their city or county. While this is not  a big expense, it is there and if you do not have the proper permission  to have a business, the fines and penalties can add up quickly. There  can be a number of different taxes you have to pay if you are in  business for yourself. If you are selling a product, remember to collect  sales tax if applicable and more importantly to send any tax collected  to the proper authority on time. You will also be subject to  self-employment tax if you are not incorporated and paying yourself. If  you have employees, there will be all kind of taxes, from withholding  taxes to unemployment taxes.

Liability Insurance

Another expense it is easy to forget about is liability insurance.  You may have insurance on your equipment and have been told about  worker’s compensation insurance, but you also need to be covered should a  client or customer get hurt on your property. If your business provides  a service in which you will be handling property that belongs to a client or will be going to a client’s home, liability insurance will cover any damage you accidentally cause to the property.

Advertising

You probably already know you will have to do advertising to get  business but do you realize just how much it costs? A simple ad in the  phone book can cost hundreds of dollars. If you are going to do the  majority of your marketing online, it is still going to cost you quite a  bit of money. Joining different groups or having subscriptions for  sites to advertise on all add up.

Utilities

Even if you are going to be operating your business out of your home  until there is a definite need for an office, you are still going to  want a separate phone for work purposes. Having the kids answer the home  phone when it is a business call is not very professional. If you have a  separate location for work, whether just an office or a type of store,  you are going to need electric and water and sewer too. These expenses  can get very pricey depending on the business.

Website Expenses

You may be able to create your own website, web design could very well  be your business. Very few people are going to start off with a server  to host the site. Web hosting does not have to be a big expense, but it  will be there, and every month. Do not forget to make sure you pay for  the domain too.

Starting your own business will be an adventure. Whether it is a fun  ride or one you can’t wait to get off of is entirely up to you. Do not  let the little things get you down and make sure you plan ahead  financially. It might be a good idea to keep your day job for a while  until you are sure your business can afford to pay you what you need to  support your family.

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About Pepper

I am a single working mom, trying to raise my kid the best way I know how. Join me as I navigate my way through the jungle that is Single Mom-hood, armed with rose-colored glasses and strength of spirit. As pepper adds spice to food, so does my daughter add spice to my life. She makes life no less than…PEPPERRIFIC!

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Comments

  1. We have had our own business for a long time and the paperwork is awful! Taxes alone are overwhelming no matter the volume of business.
    Sandy

  2. I personally think these questions are very useful. They help you to understand if starting the business you want is worth. So we all must take into account them when we want to start a new business.

  3. 6 months back i started my own development company. Issues i am facing today is causing lots of trouble mainly due to lack of finance.

  4. Yes you should know very well these all things which are mentioned in this post and it’s not possible you will get success in starting days of your business. So you should have enough money to expend on your business and then go ahead in that.

  5. I’ve been thinking of buying a franchise business soon. Ipon lang ng konti. At this age and time, I think it’s really best to have another source of income just to be safe. =(

  6. Gold Coast Removals says

    There is a saying “If you do as you’ve always done…… You will get what you’ve always got”

    By this l mean, if we continue to do the same thing day in day out we will just continue to be in the similar position in a year from now.

    So l do believe strongly in starting your own small business as it potentially opens up the possibility of becoming financially well off.

    I have a lot of theories about governments and authorities deliberately making it difficult for “common” people to start and run a small business, there is so much red tape and legal issues to attend to. Then we have insurances and tax to worry about.

    At the end of the day though…… if it was EASY, EVERYONE WOULD BE DOING IT !!

    so if you have the desire to work for yourself then GO FOR IT !!! and dont let red tape and bureaucrats hold you back.

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