If you dream of becoming a successful entrepreneur, you’ll have to invest some money and energy into making your vision a reality. Business News Daily reveals that even starting a small micro-business costs about $3,000. If you have a subpar financial history, you might worry that this will get in the way of your mission to found a startup. However, it’s possible to become a business owner, even if you don’t have a 700+ credit score.
This is just one of the many resources available to you to help realize your startup dreams. Read on for more tips from CPA Accounting & Tax Services on founding a business when you have a flawed financial past.
Create a business plan to structure your startup.
A business plan is a comprehensive guidebook that explains exactly how your startup will be managed. This document also helps you prepare for success. For example, it requires you to complete a market analysis of competitors in your industry and to create financial projections estimating what you expect to earn. Inc. magazine explains how to craft a business plan from start to finish.
Calculate your startup costs and research funding opportunities.
Once your business plan is complete, you can use it to solicit funding opportunities. First, figure out how much money you’ll need. The U.S. Small Business Administration offers a startup cost calculator that can help you figure this out. Then, look at various funding opportunities. SalesFlare provides a list of nine options, including friends and family, startup incubators and accelerators, and traditional bank loans.
Clean up your financial history as best as possible.
If you’re going to approach traditional lenders like banks for funding, they will review your financial profile when deciding whether or not to give you a loan. To improve your odds of success, clean up your finances. If your credit is low, Experian explains that there are ways to boost it. Tips include paying down revolving account balances and catching up on past-due accounts.
Look for ways to minimize overhead costs.
Once you get the money you need for your startup, make the most of your capital by keeping overhead costs low. Minimizing daily expenses will create a streamlined business model that is more likely to turn a profit in the long run. Expense to Profit provides a guide to business cost-cutting. Their suggestions include looking for ways to save on office software, eliminating paper processes in favor of digital ones, and reducing or eliminating office space.
Keep your sales and marketing tactics cost-efficient.
To get your startup off the ground, you’ll need to proactively market it. This is the key to getting your first customers. Luckily, modern marketing and advertising methods are relatively cost-efficient, thanks to cutting-edge technologies. Business Town describes various digital techniques that can boost your business profile, from creating a blog to sharing on social media.
Give yourself the time you need to prepare by investing in your education.
You may not feel ready to start your business right now. Maybe you want more time to rebuild your credit score, for example — or perhaps there are some skills you want to master before becoming a business owner. Furthering your education is a great way to keep your entrepreneurial dreams on track. Western Governors University offers an online MBA program that can help you develop management and leadership skills. Studying online has many benefits for working professionals, including flexibility (you can take courses at your own pace and wherever you’d like) and affordability (online programs are far less expensive than attending a traditional campus).
If you’ve experienced financial troubles in the past, putting money into a business might be intimidating. However, it’s still possible to start a thriving company with minimal financial risk. The above guide describes how it’s done.
CPA Accounting & Tax Services of Orlando is dedicated to serving all of your bookkeeping, accounting, tax prep, and financial service needs. Contact us or text us today for your no-obligation quote! (407) 382-6658