Have you always talked about starting your own small business but have been scared to get started because you feared failure? Starting your own small business won’t be as scary if you have a strong, well thought out plan in place. Here’s how you could organise your finances and paperwork to hopefully decrease the chances of hitting any potholes because of a clerical or budgeting error.
Firstly, create your business plan
Creating a business plan will help you monitor your business’ progress, educate stakeholders, apply for a small business loan and potentially convince seed investors in financially supporting your small business. Your business plan will adapt and grow with your business, and it’s important that it includes:
- Executive summary: A short summary of your business plan.
- Company description: Provide a description of your company values and its purpose.
- Outline products and services: Describe your company’s products and services.
- Operations plan: From product development to distribution, outline how your company will operate.
- Objectives: You want each part of your business aligned to common goals, so make sure this is clear and transparent.
- Competitor analysis: Be sure there is a gap in the market and be aware of business strategies that may or may not be working for potential competitors.
- Start-up costs: This is a thorough and structured outline of costs to establish your company, e.g. registration costs, server costs, office space costs, product development costs, wages, etc.
- Funding: Outline where you anticipate your funding will come from and how much you will require to securely cover start-up costs.
- Financial projections: Provide a realistic and informed forecast on the company’s future revenue and expenses.
If you require financial backing, the above business plan will help investors and financial institutions to be assured of your commitment to your company and its validity.
Secondly, get a business bank account
Your business idea is on the path to being a start up, so you may want to start setting up your finances. A business bank account can be the first step. This will allow you to register your account with necessary parties and give you a more streamlined approach to managing your company’s . Greater Bank has a range of Business Banking accounts designed to help small business owners keep banking simple.
Thirdly, sort out your bookkeeping and invoicing
A priority for starting a small business is setting up a system to manage your cashflow. Having a structured bookkeeping system is essential to tracking accounts payable and accounts receivable. | Greater Bank
It will also be valuable when you:
- Analyse your business’ performance against your financial projections
- Lodge and pay tax
- Report on finances to stakeholders
- Seek financial support from investors or institutions
To further support financing and accounts receivable, you may want to have your invoicing template ready and branded to avoid any hiccups with your incoming finance.
Finally, don't forget to keep a budget
As a small business owner, keep on top of your budget and cash flow as your business grows. You may need to employ staff, rent office space and increase distribution – this will mean adjusting your business plan.
If you are not confident managing your company’s finances, speak to a business banker . Whether you’ve got questions about cash-flow, filing tax or just being confident in your financial goals, it always helps to get a professional to review your business plan.