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Set up Your Finances

Just like your legal structure, your financial structure is just as important. Making sure that you take out applicable taxes, keep an accurate record of your business profits and losses, your business expenses, and other financial transactions are very important.

Moreover, you need to outline how you will support your business financially. Not every startup business requires outside investment, but just about every new business owner needs capital from somewhere—even if it’s their own savings account or 401K. You need to document this.

Additionally, if you’ve created good projections and forecasts in your business plan, and have your accounting in order, getting money from outside investors (banks, government agencies, VCs, angel investors, and/or family and friends) is that much easier. 

  • Figure out how much money you will need for startup (also called organization) costs

  • Decide how you will finance your business

  • Put together your financial statements

  • Forecast your first-year sales revenues, then do the same for 3-and 5-years out

  • Create a profit and loss statement (can be projections)

  • Complete a balance sheet (can be projections)

  • Come up with your pitch

  • Apply for financing

  • Open a business bank account(s)

  • Set up your accounting system

  • If you do get outside financing, have a plan for how you will pay it back and an exit strategy

  • Find a CPA (you can use a bookkeeper for the day-to-day accounting, but should use a CPA to set up your accounts, complete your taxes, and advise you on financial decisions)


Setup Your Sales Platform or Business Location

Where will you sell your product or service? How will you attract sales and process payments? How will you protect employees and customers?

 

Setup Your Legal Structure