With 33.2 million small businesses in the United States, it’s crucial to periodically check in with clients to see if they have plans to start their own business. If you’re considering opening a business in the next few years, I’m here to help. Here are some essential tips to get you started:
Prioritize Marketing
Marketing is the top reason businesses succeed or fail. Surprisingly, only 71% of businesses have a website, and 20% rely solely on social media for marketing and customer service. To thrive, your business needs both a website and a social media presence. Consider this: 76% of customers check a website before visiting a physical store. Don’t let your business miss out on this opportunity to connect with potential customers.
Manage Labor and Inventory Costs
Labor accounts for 70% of a business’s spending, making it the largest expense. You don’t need a large team to start; many early-stage businesses rely on family and friends. Additionally, consider using artificial intelligence to offset labor costs. Inventory is the second biggest expense, so it’s vital to plan for storage and shipping. Proper inventory management can save money and streamline operations.
Separate Personal and Business Finances
Separating your personal and business accounts is essential for understanding your business’s financial health, simplifying tax preparation, and protecting your personal assets from liability. This clear division helps maintain organized and accurate financial records.
Hire a Financial Advisor Early
Don’t wait until you have more money to hire a financial advisor. A strong financial plan is crucial, especially when money is tight at the start of your business venture. Working with a financial advisor can be more affordable than you think and provides invaluable guidance for long-term success. Whether you choose to work with me or another professional, this step is highly recommended.
Our team is always available as a financial planning resource. If you or someone you know is planning to open a business, let us know how we can help. That’s why we’re here!
By following these tips, you’ll be better equipped to navigate the challenges of starting a small business and set yourself up for success.
Want to learn more? Contact us.
