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Prepare to start your own business with 5 essential steps

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Starting your own business is not something that you should rush into on a whim. If you take the time to prepare correctly you will save yourself a lot of time and money and avoid some very costly mistakes. Follow these 5 essential steps before you set up your own business and give your new venture the best possible chance of being a success.

1. Put together an emergency fund

The first few weeks and months of a new business can be high risk and things can go wrong. You may end up losing money in the early days rather than making any! This will be a problem if you have no financial safety net to keep you going.

So, how much do you need? In an ideal world, you would have enough money to live off if your business made no money at all for six months. You may be able to get away with less than this if your husband, wife or partner has a steady job and they are willing to take over the household bills for a while.

In reality, you should have a few months’ worth of income put by.  If you can avoid going up to the limit on your credit card and turning to payday loans it is preferable.

2. Get qualified

Running a business requires knowledge and skill so make sure that you have both before you start one of your own. An accredited online MBA program will tell you all you need to know about running a business and making a profit.

You will also need to learn about social media marketing and promotion. There is plenty of free guidance on this online but you need to get skilled up so that you can hit the ground running.

3. Keep your finances separate

It is a big mistake to mingle your business and private finances. It may feel like it is your money once it enters your business but it is not. Your accountant will not be pleased with you if it all gets mixed up.

To do this you must open a separate business bank account in the name of your business. This also looks more professional in front of clients. Once you have made a profit, you can withdraw some money out of the business account as your salary or you may decide to leave it in there are reinvest it in your business.

4. Save for your retirement

Being self-employed does not mean that you can forget about your retirement. In fact, it is even more important because you won’t have that company pension to depend on. Speak to an independent financial adviser as soon as you can and set up the best scheme for your needs.

5. Have some help standing by

Starting your own business is exhausting and you will find that you are trying to keep too many balls in the air at once. Get some support in place so that you do not work yourself into the ground.

About Business Woman Media

Our women don’t want to settle for anything but the best. They understand that success is a journey involving personal growth, savvy optimism and the tenacity to be the best. We believe in pragmatism, having fun, hard-work and sharing inspiration. LinkedIn

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