5 Things To Do Before You Start A Business. When I started my web development business, I really didn’t know what I was doing. I jumped in and figured that everything would sort itself out. I would get a lot of business, work a lot of hours, make a lot of money and it would all be great.
Now it’s 4 years later and I’m in the same financial situation that I was when I began. No extra money, living from project to project, begging clients to pay me on time. As I look back, I’ve learned a lot over these 4 years, so I thought I would put together a list to help myself and help others.
5 Things To Do Before You Start A Business
Get An Accountant - I have been working freelance for nearly 4 years but I have only recently signed up with an accountant. Needless to say, I will be paying the tax man for a while. Even if you aren’t making much money at all, it is vital to your survival that you get an accountant who is versed in small business. No matter the price, they will save you money in the long run.
Get Some Investment Money - When I started my business, I was riding the waves and taking my bumps, but I never had any money in the bank. Lack of liquidity has really begun to show its ugly face as I have tried to bring in sub-contractors to handle some of my work. Clients do not pay me on time, but I feel like a jackass if I don’t pay my workers on time.
Incorporate Your Business - This has not yet come back to bite me, but I could have saved some tax money if I had incorporated from the beginning. When you incorporate you can create a separate bank account for your business. Also, as I have begun to build some business assets (websites, written documents, etc), it would be nice to have the “corporate veil” to protect them. If you have a good accountant, they can help you set this up.
Set A Daily Schedule - This is one of the biggest issues of working from home and I still battle with it on a daily basis. Working from your house provides you with limitless perks, but if you do not get yourself out of bed and start your day, or if you are unable to stay on task throughout the day, you will not last very long.
Get Your Value - I used to be scared about giving clients a pricetag and sometimes I still wonder if I am giving them their money’s worth. I have consistently low-balled estimates and it has cost me a lot of happiness and money in the long run. No matter what business you are getting into, figure out your pricing and don’t be afraid to walk away from a job if the price isn’t right.