Small Business Propel: Getting Clear 3.3- What To Spend Money On

Earlier, I suggested that you spend a few minutes getting clear about YOU.  If you missed the post, you can read it here.

Today we are going to explore the subject of MONEY.

In my experience, many business owners get started thinking that they are going to get what is needed to run a business as sales come in.  Still, there is a large group of folks out there that think they can do everything and get by until the money is there.  As a side note, as much as it is a huge passion of mine to help women owned companies grow, this idea that we (women) can run and establish a company much like we run our households (meaning that we will do it all ourselves) is; in my opinion, one of the foundation reasons why female owned businesses fail at scary rates compared to male’s.

One reality of business that we all need to be clear about is that it takes money to do things right.  One does not need necessarily to spend thousands but there are areas where there are no short cuts.

If you opt for either not spending the money on these things, or you think that you can do them the right way on your own I suspect that the rate of failure will increase many fold and that is nothing compared to the risk to yourself and/or your family.

So here is my list of things that most business owners should spend money on:

• Consultation with a CPA do determine what business formation type(s) are most advantageous to you.
• Hiring an attorney to legally form your business entity type and protect you and your family from law suits.
• Hiring a bookkeeper to help you set up at the onset your accounting system and teach you how to enter/categorize transactions so that you can file takes without pulling your hair out when the time comes.
• Open a BUSINESS BANK ACCOUNT.  If you are too cheap to spend $10/month to keep all of your business money separate and properly managed I need to wonder if you should be in business.  You can find free accounts out there but think carefully about features that can make your life much easier.

• Open a BUSINESS SAVINGS ACCOUNT where you will move a designated % of your revenues to be re-invested in growth related activities.

• Hire a professional to help you create your corporate identity and brand.

• Hire a professional to design your logo, business cards, and web site.  The choice is this: either attract the right buyers to you or turn people off by looking like this is a hobby and not a real business.

• Have your web site professionally search engine optimized.

• Set a budget for your networking activities, trade shows, or other in person selling opportunities.

• Purchase the equipment that you need to operate.

Based on my experience as a business owner and also a former business banker, I estimate that you can do all of these things (well done) for about $5000.

One way to make this work is to make an initial deposit into your business bank account for this sum or whatever sum you came up with so that you can emotionally part with the money and know that it is allotted to doing the right thing.  If you don’t, it will become an emotional thing each time that you have to write a check or you will stall to do it.

By +Maria Ryan McElhenny

 

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