Ladies, it is very important that you try not to get into personal debt when you are building your business.
Unless of course you know what you’re doing and are prepared for the potential consequences.
While it is true that all businesses require money to get started it is important that you not put yourself in a debt situation that you cannot cope with. Starting a business even a one-person-startup will cost you on average $25,000 – $30,000 in your first year. You will need, a website, website hosting, domain name registration, business name, (if you plan to incorporate your business there will be some legal fees) equipment (phone and computer) and possibly a workspace unless you plan to work from home and last but not least a BookKeeper!
The Value of Bookkeepers
Yes, a Bookkeeper. The one thing we advise all of our clients to give very serious thought to is hiring a good Bookkeeper! Yes, it is an added expense, but the money and anguish you will save yourself by keeping proper records more than pays for itself. In fact, it is “priceless”.
Over the years we have seen thousands of women who were very passionate and really good at something start their own businesses only to fail miserably because they did not keep good records. The IRS and Canada Revenue Agency are not forgiving should you not have the proper records and file your taxes on time.
Personal Debt
Going into personal debt, accumulating personal loans or maxing out your credit cards as you build your business is the usual choice of new entrepreneurs. But it is most definitely not the best one. There can be serious pitfalls to using your own credit, to create business debt. For example getting a personal loan means you are going to be personally liable for paying it off. If your business fails, you will still owe whatever, money you borrowed from the bank.
Best Asset – A Business Plan
We believe the most important thing to do when starting your business, is to make the time to do a Business Plan. I know it does not sound sexy or fun, however, it is the foundation for a good business.
to be continued….
If you find yourself getting into financial difficulty because you used your own credit to build your business call us. Women and Money Inc. we can help you!