Now is a great time for entrepreneurs to start or expand a business and this financial guide can help. There have been many changes that have negatively impacted our economy, but things are starting to shift. Many businesses who have survived are actively looking for ways to grow with new strategies. If you’ve been thinking about starting or expanding your business, consider the following tips from Money Alignment Academy to help you get started.
Business Plans
A business plan is a document that guides your company’s future. It sets goals and helps identify new growth opportunities. Business plans come in many forms. But whether you’re creating a formal 100-page document or writing it on a napkin, there are a few essential components:
Products and Services
Your business plan should clearly identify your products and services. What types of products or services are you selling? What are the key features?
Pricing
If you’re planning to raise capital, you’ll need to consider your pricing options carefully. You don’t want to alienate customers with high prices, but at the same time, you don’t want to undervalue your products and miss revenue opportunities.
Competition
Your business plan should also include information about your competitors. What sets your company apart from them?
Marketing and Sales
Your plan should identify your sales goals and the strategies for reaching those goals. You’ll need to build awareness and attract potential customers. If you’re struggling to get the customers you need, then consider a lead generation company. You can contract out freelancers to get a marketing boost and get into the right rhythm without committing to a full time hire. Plus, you can read through client reviews and ratings before making a choice.
Financial Plan
The financial plan should describe your company’s finances, sources of funding, projections for growth, and projected expenses.
Tips for Success
The business world is constantly changing, so make sure you know what you’re diving into. Check out interest rates and the success rates of small businesses in your area before you commit to starting your own business. And when it’s the right time, keep these things in mind:
Interest Rates
The recent Federal Reserve interest rate hikes in 2022 are providing higher rates to borrowers. Be careful about borrowing more than you can afford to pay back. You can also choose to wait and budget your own funds for your startup. Money Alignment Academy offers courses to help you budget for big life goals that can help you start your business with minimal debt.
Deals on Equipment
A rough economic patch can benefit new entrepreneurs starting out during an upswing. You may find that businesses that didn’t succeed have put their excess equipment up for sale. You can take advantage of this by acquiring it at a bargain price.
Startup Capital
Many would-be entrepreneurs have been reluctant to start a business because of financial requirements. But there are many ways to raise capital, including:
- Friends and family
- Loans
- Investors
- Personal savings
- Government grants
- Crowdfunding
- Sales
Get Online
Find creative ways to generate revenue. Offer virtual training sessions, or sell your services or products online.
Virtual Teams
If you need to hire virtual workers, such as virtual assistants or digital marketers, now is the time to do it.
Flexibility
Be flexible with your employees. Many people have found working from home provides them better work/life balance. If that is realistic for your business, offer flexible work options for employees. Don’t forget to update your business plan as your business changes, and keep an eye out for new opportunities.
Location
It’s worth considering a location with some of the best tax benefits in the United States.
Form an LLC
A limited liability company (LLC) allows you to protect your personal assets from business lawsuits if something goes wrong. An LLC can also be helpful on taxes. While it might sound complicated, forming an LLC is actually pretty straightforward when you use an online filing service, although you should consult with your state’s business registration office to make sure you file the correct documents.
Take Control
Life has a way of pushing back our plans, but if you’re serious about starting a business, there may never be a better time. With practical business knowledge and helpful strategies, you can take control of your future.