A business plan helps you take stock of where your enterprise is at, what its goals are and how it plans to get there. It also can be used to pique the interest of and inspire confidence in outsiders, such as lenders.
Your business plan should include a legal structure (sole proprietorship, limited partnership, corporation), an executive summary that distills the information that follows and describes your company in detail, a description of your products or services, an explanation of why your offerings are unique and valuable to consumers, and key financial details.
Build A Savings Account
A savings account allows a business to build funds for emergencies or other goals. The best options are FDIC-insured to keep the money safe and earn interest.
Small business owners often work essentially hand-to-mouth and don’t have the time to save regularly, but putting some of their profit into a dedicated business savings account can help them better prepare for unexpected expenses or even the downturn in the economy.
Businesses Credit Card
A business credit card is a great way to manage expenses and build credit for your company. However, it is important to research cards and select the right one for your company. You may also want to consider a business checking and savings account in addition to the credit card, as this can help you manage your day-to-day revenue and expenses.
Keep in mind that most lenders will check your personal credit score to determine whether you qualify for a card, as you’ll be personally liable for any amounts charged to the card. Some cards offer perks such as rewards and fraud protection to make life as a small business owner easier.
Create A Budget
A budget is an essential tool for small business owners. It helps them plan their expenses and revenues throughout the year. Start by tallying up all of the fixed costs that will occur regularly, such as rent, debt payments, utility bills, payroll costs, and taxes. Then, add one-time expenses that only come up occasionally, such as training courses or marketing costs.