The Blog Of TL Wall Accounting

What You Need To Know When Starting Your New Business

If I were to start a new business again, I would hope to first read the book Before You Quit Your Job by Robert Kiyosaki. It talks about the reality of what it takes to get into the proper mindset of self employment. It’s not all that easy for the majority of people. Over 95% of all new businesses shut down with 3 years of starting.

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We’ll let Kiyosaki handle the mindset part of this. What we’re going to touch upon are more tangible things you need to think about that will help you transition from what you were doing before to set yourself up properly for what you want to do now.

First, let’s look at general supplies. When you’re working in an office, most of these things are covered by the company. Now that you’re in charge, unless you have a lot of employees ready to go immediately (which no one does), you need to think about what you really need for your business.

For instance, one of my clients went to an office supply store when he started and bought all the supplies his office used to have. That included pens, pencils, staples and paper clips, as well as a bunch of envelopes. Five years later the only thing he’d gone through were regular envelopes. It turned out that he did most of his work on his computer, so all the other stuff he had sat there… except for the pens, which all dried out.

Second, you need to determine the technology you’re going to need and to what degree.

Almost everyone needs a computer for something, but not everyone needs the best there is. There are two determinants for selecting a computer, and neither one is based on cost.

The first is how much time you’re going to be spending on it. If you’re rarely going to use it, either for business or pleasure, then you only need a basic computer. You might even be able to get away with a tablet, which you can do almost anything with but also travel with. If you’re on it often then you might need a more powerful desktop or laptop that can withstand lots of use.

The second is the type of software you’re planning to use. If it’s basic stuff such as spreadsheets and writing software then any computer, laptop or tablet will suffice. If you’re going to use software to help do designs or anything that will take up a lot of power you’re going to want to get something high end that also allows you to easily upgrade components for the long haul.

There are differences in price of course, but if it’s about your business then you need to consider what you need to spend for your business regardless of cost. Remember, you get to write it off on your taxes.

The third thing you need to think about is what you’re good at and what you can allow someone else to do for you. For instance, maybe you’re good at numbers but if you’re accumulating a lot of expenses or looking to incorporate your business, you might want to think about hiring an accountant. If you’re putting together marketing material you might want to talk to some professional printers or designers. If you’re going to be doing a lot of mailing or other office things you don’t have the time to do (such as answering phones), there are people you can hire for that. Make sure to use your time well.

The fourth and final thing to think about comes back to how much money you want to spend up front. I’m someone who believes that if you’re unsure you’re going to need something then wait until you do before you spend money on it, especially if it’s expensive. This includes your office space; don’t fill it with desks, chairs and file cabinets until you’ve decided it’s what you need to grow your business properly.

These are only some of the things you should consider when starting your own business. Overall, our best advice is to think before you leap when it comes to spending money. Not only can you never get it back but you might need to hold onto it to cover expenses until you get some paying clients.

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