Starting off on a new business venture is exciting and a little scary at the same time. Before taking the leap into becoming your own boss, it’s a good idea to have a good organization system in place.
Another element to consider is cost. You don’t want to pour a ton of money into your business up front before it’s making any profit. One option you can pursue which may help alleviate costs initially is small business financing with Summit Financial. Regardless of the route you want to take, I have a few time and money savings tips that will help as you start your small business.
Work from home. Many entrepreneurs start their businesses out of their living rooms or kitchens before expanding into actual office spaces. Since you are already paying rent or a mortgage on your apartment or house, set apart a space dedicated to your home office. Set up your computer, files, and any other office items in an area that is free from other household distractions.
Learn tax differences. The tax information needed for someone self-employed or running a small business differs than when you are employed by another company. There are different forms and different expenses to consider. Make sure you understand how tax filing works for small business owners. To make sure you have what you need come filing time, employ the specialties of a payroll tax debt relief service to avoid tax trouble and to learn how to itemize business costs to save money. If employing a specialist isn’t your thing, you can also use free online tax calculators to get an idea on your tax figures yourself.
Get organized online. To de-clutter your space, limit the amount of paper used by organizing files online. For Gmail users, Google Drive is a free application that helps organize all files in one place with access from any computer. You can also set up a spreadsheet or use online software to create a business budget, so that you can track spending for expenses, trips, or anything else business-related. Many programs offer free trials, so try out what works best for you before investing your money.
Adjust estimated tax payments. If you don’t have your business set up to have deductions taken out every pay period, you will need to plan for estimated tax payments every quarter. Keep track of your actual income and adjust your estimated payment to reflect any changes, so you don’t end up overpaying on your taxes.
Calculate business expenses. There are cases when your personal expenses spill over to business expenses. For example, if you use your personal car for business trips or to attend meetings, the fuel, parking fees, and maintenance needed for this can be listed as a business expense. Speak to your tax advisor about which items can be deducted to possibly cut the amount of taxes owed. Document everything and keep all receipts.
The last thing you want to happen when starting a new business is to drive yourself into debt. Although there might be a few setbacks or rough patches, starting your own business is a venture that can be well worth the hard work if you follow these time and money saving tips. The income can then help you pay down other debts you have in an effort to become fully debt-free.
Have you just started your own business? What advice do you have for others?
*Image courtesy of Flickr.