If you have the desire in becoming an entrepreneur and starting your own business journey, there are so many steps or reminders you need to keep things running smoothly, especially in the beginning stages. There will always be so much to do and if you are used to being a specialist in one area of business while working at a corporation, as an entrepreneur, specifically if you are a solo-preneur, you will have to learn many key areas of the business to ensure everything runs smoothly. However, here are some business foundations for anyone looking to start their own business.
Create a Savings Cushion for Rainy Season
Perhaps the most obvious tip we can give is that businesses can be expensive, so make sure you have plenty of funds in reserve for unexpected expenses or delayed paid invoices from clients.
For example, you might need more tech equipment – a new camera, computer or other gadgets that can quickly add up. Or you might have a client or two who have promised funds to hit your account but you are still awaiting payment. While most experts say to have a cushion of three months in savings, three months can go quick. Do you remember everything you did in the summer? Likely not because time just flies! We recommend saving closer to 6 months – or even a year – in a high yield savings account so you know you can weather the stormy seasons when invoices and partnerships aren’t closing at as quick of a rate as you’d like.
Ensure You Understand the Foundations of Taxes
Unfortunately, as the saying goes nothing is certain except for death and taxes. One of the first aspects of the tax forms is to notate what type of business you have registered. You will need to consider a filing service for a federal employment identification number if you are just starting out and it will help you scale if you begin to hire employees as well.
Another key area of setting up your tax foundation is having your funds be as separate as possible between your personal expenses and your business expenses. File for a separate business checking account as well as business credit card so that when tax time comes, you’ll be able to easily discern and itemize any expenses that are relevant for your business.
Set Up the Basic Marketing Channels of Your Business
Lastly, to promote and grow your new business, marketing comes into play – the fun part! Not all marketing channels are for every business though. The default thinking might be that you need to show up everywhere; however, staying focused in one area is going to set you up for further – and quicker success. Perhaps you are more focused on B2B sales, in which case your target demo is likely on LinkedIn. Or perhaps your core client wants to grow on Instagram – well, you should have a profile set up on Instagram. Regardless of what social media channels you leverage, creating your website that fully outlines your business services, contact information, and other relevant materials is a must.
Work On Your Business – Not In Your Business
With the rise in AI like ChatGPT, Claude.AI, Zapier, and a myriad of other tools, there are several ways for you to be able to automate the operations of your business while you create products, strategies, and launches, in essence focusing on the areas of business that only you can do. Find ways to automate and outsource.
Create Time Boundaries
When you are on an entrepreneurial journey and no longer working on a fixed schedule, it is imperative to have blocked off time to work and more importantly block off time to focus on the other areas of life that matter to you, like family, relationships, creativity, and rest. The entrepreneurial journey can be challenging and rather than working endless hours (you did want to escape the long, arduous hours of a salaried job, right?) then create boundaries with your focused work time.