Start Up Company: 4 Financial Issues Small Businesses Can’t Afford To Forget
The struggle is real if you want a start up company. Whether you are working from home as a freelancer or have just started a small business, it’s easy to forget you have responsibilities. And, if you don’t address them, then you will leave yourself open to a world of trouble. Today, I thought I let you know about four different areas of business that you can’t afford to forget.
When you plan to have a start up company in the comfort of your home, it can be tempting to skip the insurance. It’s an extra cost that you just don’t need; I get that. I also understand that you feel completely safe in your home, and nothing will go missing if you take care of it. But – what if you get hacked? What if you invite a client over and they trip and fall? What if your home is burglared when you are away on holiday? Without insurance, all those incidents could leave you with a hefty bill.
Hiring an accountant costs money. But having an accountant saves you more. It’s that simple, so it’s not a cost – it’s an investment. Not only will they help you with your books and free up your time, but they will also help you target areas for saving with the tax office. And, don’t forget, if you make a mistake while doing your books, it could cost you a small fortune. In short, an accountant earns their money, and no business should be without one.
No health and safety policy
I know it seems silly to think about having a health and safety policy when you work for yourself. Or, in fact, even if you have a small team behind you. But, it’s a legal requirement to have one – and if there is an accident and you are at fault, there will be financial troubles ahead. There are small business health and safety consultants out there that can help you, and it’s vital that you have something in place. There have been plenty of incidents where a small business has had to stop trading after being sued because of an accident.
There is nothing worse in business than expecting sales to roll in regularly. Your profit will never be enough to keep you up and running, and you just can’t rely on sales to keep you going. So, invest what you can in marketing and branding and start to get your name out there. There will be lean times ahead, so ensure you have some savings put aside, too. You should have at least three months worth of money behind you to see you through. However, I would say that six months would be more appropriate!
So, there you have it, four financial issues that you really can’t afford to miss if you plan to have a start up company. Even though it’s easy to put them on one side to save money, in the end it could cost you a lot more. Try and incorporate them into your startup plan and get into the better habits nice and early. It’s the best way to approach your new business and will protect you from any trouble further down the line. Good luck!
*This post is contributed to Spicy Scribbler Blog