Millennial business owners have had to deal with a lot.
Millennials have been through a lot from wars to pandemics and economic instability. These tough times have caused many to feel defeated about their future, forcing many to give up on their dream of starting a business.
But, the idea of becoming an owner doesn’t need to be scary. We’ve seen many millennials grow successful businesses despite their circumstances. So, if you’re a millennial who’s interested in starting a company, but is unsure where to begin, continue reading below on how you can turn your dream into a reality.
1. Determine What You’re Selling
Before launching, you will need a clear idea of what your product or service will do for consumers. Without a definitive product, potential customers could be confused by what you are trying to offer. And, if people are confused they will likely not purchase but turn to a competitor who is clear in stating what they offer.
2. Find Funding
For many millennials, one of the things preventing them from starting a business is a lack of funding but that’s where business financing comes in. Of course, a traditional bank can provide a business loan, but that could be risky. Another alternative to explore for funding is SBA loans or alternative lenders that could provide cash at a better deal.
In addition to loans, you might want to consider an angel investor or venture capitalist who would exchange cash for equity in your company. However, this would mean giving up full ownership which is something major to consider.
Finally, potential owners may want to look at their savings and assets as a way to inject cash into a startup instead of taking on costly loans or having to give up equity.
3. Create a Financial Plan
A financial plan is a significant part of a new business; it is the roadmap that should guide all financial and strategic decisions. However, many first-time owners overlook this critical step.
To create a financial plan, you will need to create a detailed business model explaining what your company is, what it offers, and how it will make money. When doing this, it is important to remember that clarity is key as owners will need to calculate financial projections and back them up with detailed breakdowns of startup costs, sales to date, expenses, etc.
Once this document is established owners are advised to update it regularly as new information and data is gathered.
4. Separate Business and Personal Finances
Although this might seem like an obvious tip, separating business expenses from personal is another key step to maintaining your business profits. This should be done from the onset to prevent any kind of mismanagement of funds. Simply open a business checking account and be sure to only use that account for business-related purchases which should prevent owners from paying out of pocket or not accounting for the purchase in their records.
5. Explore Free Resources and Tools
Anyone thinking of starting a business should try to make use of as many free resources and tools as possible. There are tons of apps out there that can automate tasks like scheduling emails, uploading receipts, editing documents and so much more.
Without the use of these tools, you could be wasting valuable time doing tedious tasks. The main tool that we recommend implementing in a business is QuickBooks. Using this program helps owners streamline finances by automatically doing tasks like updating inventory, sorting receipts, or sending reminders about tax obligations.
Of course, at A.P Accounting & Tax Services we can help you set up your QuickBooks account and will even be able to offer personalized financial advice. We will take the time to walk through your business plan to determine the best plan of action to make your dream of ownership a reality. So, consider speaking with us at 407-328-5001.
Image: Unsplash
