5 Things You Need to Know About Starting a New Business

Starting a new business can be scary and overwhelming. There’s a lot of uncertainty…and a lot of bureaucracy to wade through. You really need someone to guide you if you want to succeed.

2021 may be the year that you’ve finally decided to launch that business you’ve been dreaming about. In many ways, it’s a perfect time for a new beginning. (We totally understand how a year like 2020 may have either pulled the rug out from under you financially or made you say “That’s it! I’ve had it. I’m ready for a change!”)

If a new year has you ready to move in a new direction, this may be the blog post for you.

Much of the work we do at CRS CPA helps businesses win by staying on top of their basic accounting needs. Most of our business clients have been around for a while. However, we also know that a lot of people are starting new businesses all the time. That’s why we have team members who focus on new business formation.

There’s no way one short blog post can cover everything you need to know about starting a new business, but we wanted to start 2021 by giving you a few key things we’ve learned over the years from helping people just like you launch their dreams.

FIVE THINGS EVERY NEW BUSINESS OWNER NEEDS TO KNOW:

  1. “Most businesses fail” just isn’t true. What we’ve seen in reality is that most business owners give up too soon, don’t follow through on fundamentals, and are foolish with their money. Your new business will have plenty of difficult seasons—especially at first—but with good guidance and a lot of perseverance you can make it.
  2. Make sure you like what you’re doing. When you are successful with your new venture, it’s what you’re going to be doing for quite a while. Never start a business just because a book, podcast, or infomercial told you that it’s a surefire way to make lots of fast money. Even if you do well, you’ll be miserable if it’s not a good fit for you.
  3. Don’t step off the dock too soon. Dave Ramsey has grown a multi-million dollar company based on helping people win with their finances, and he helps thousands of small business owners through his Entreleadership material. He frequently advises would-be entrepreneurs to not quit their day jobs until they get to a point where their side hustle is producing almost as much money as their main source of income. You want the boat “pulled as close to the dock as you can get it, so that when you make the jump from the dock to the boat you don’t hit the water.”
  4. Do things that actually make money. Too many new business owners spend too much of their time designing business cards, picking out colors for their website, and wandering around in social media pretending that they’re actually getting something done. However, none of those things really matter in the beginning. They only distract you and waste time. Focus the bulk of your energy instead on those high-paying tasks that only you can do. Your customers will reward you for it. (And as soon as you are financially able, find some remote freelancers to help you with all those other things.)
  5. Your family matters more than your business does. No explanation needed.

BUT WHAT ABOUT THE DETAILS?

There are several sites that talk about the “nuts and bolts” of business. The 5 things we just mentioned are what we believe you need to establish a good foundation. For information on the details of setting up a small business, start here:

HOW WE CAN HELP:

Our business formation experts partner with you and make starting your business much easier. We love living in the details! A few of the things we help you with include…

  • Preparing an initial business plan to clarify your marketing, management, and financial plans.
  • Determining the right structure for your business.
  • Preparing and filing all required state and local licences and permits.
  • Determining your start-up capital needs and identifying sources of capital.
  • Preparing a Cash Flow Budget so you know exactly how much money you need to keep the business alive each month for the first few years.
  • Identifying your business insurance needs.
  • Establishing good operating procedures to monitor and control costs. 

Basically, whatever you’re facing, we’ve got you covered. Our team has decades of experience and we know how to get your new business off to a great start.Get in touch with our team today to find out what we can do for you!

Jan 13, 2021