So, you’ve decided you want to finally transform your side gig into your full-time business. In this blog, we’ll discuss how you can make this transition to start your business the right way!
Separate your personal and business finances
Make sure that you have a business account and a personal account. You’ll want to pay yourself by transferring money from the business account to the personal account and pay your personal bills only from that personal account. You have to treat your business as its own entity to start being successful. If you need assistance, an accountant can help with keeping your finances in order.
Start bookkeeping.
This goes along with the advice above. You have to keep track of your business expenses and income so that you know whether you are making a profit. You can use the information at tax time to ensure the maximum deductions. If you need assistance, you may always reach out to a bookkeeper.
Formalize your business plan.
Having a plan on how to grow and maintain your business is vital to its success. There are books at your local library that can show you how to write a business plan. Even if you just write down your goals and how you intend to achieve them it is a start.
Prepare your personal finances.
Before you quit your day job, make sure that you have at a minimum of 3 months of personal expenses in the bank and pay off any outstanding credit card debts that you may have. This will take the pressure off you as you start your new business!
The planning is done…. Now get to it. You got this!
Make Sure Your Attorney is Involved
If you are starting a business, the service providers you should have in your corner are your lawyer and your accountant. Your lawyer can make sure that you are properly incorporated and create contracts, review leases, and make sure that you are protected. Your lawyer can likely refer you to an accountant that can assist with your particular business so that you are prepared for tax time. Contact Moseman Law Office to assist you with starting your new business.