Once you become an entrepreneur, you essentially become your own boss. That provides a great deal of freedom, but also some challenges. This post provides some tips so that you can overcome those challenges while making the most of your freedom.
Tip 1: Pick Your Legal Structure
One of the biggest decisions you’ll make as an entrepreneur is the legal setup of your business. The primary options include setting up as a sole proprietorship, a limited liability company (LLC), and a partnership.
Sole proprietorships offer no legal distinction between yourself and the business. This setup can work well for people who plan to work alone and desire complete control, according to the Small Business Administration.
An LLC provides some legal protections for the business owner. Some solo business owners choose to go this route, and LLCs can work particularly well for businesses that provide many different services.
A partnership requires two or more owners. The owners jointly run the business, splitting profits and sharing the burden of losses.
Tip 2: Figure Out a Scheduling System
Every entrepreneur needs a way to manage their time. Writing tasks down and scheduling them—whether it’s with a physical calendar, pen, and paper, or digital calendar or app—can be a huge help here. Find a scheduling method that works for you and stick to it.
Tip 3: Figure Out a Budgeting System
Budgeting is just as important as scheduling. Many software options are available to help with budgeting, including QuickBooks, Prophix, Float, and more. Read up on different choices and find the right one for you.
Also, keep in mind that you should keep your personal and business finances separate. Setting up separate personal and business bank accounts is essential.
Finally, make sure you set aside money for taxes, and do some research to determine if you need to pay quarterly taxes early. Failing to do so can lead to a rude surprise during the tax-return season.
Prime Wealth Development’s other blog posts are a great source for tips on making it in the business world, so be sure to check them out!