According to a recent LinkedIn survey, 59% of people in the U.S. have experienced a career awakening in the last year and a half, with 34% of these respondents now actively pursuing a new side gig or passion project.
If you’re part of this group of entrepreneurs, congratulations! Launching your passion project and turning it into a business is a huge and exciting step. Now the first thing you want to do is take certain measures to set up your business for success, avoiding common pitfalls. That’s where we come in.
We’ve compiled a list of five things you can do to help your startup from day one.
1. Set up a financial cushion
Even if you’ve created a detailed business plan and calculated your projected profits to the dollar, it’s crucial to have a cash flow cushion. The truth is—unexpected expenses pop up. And you may not be able to acquire customers at your projected pace.
That’s why it’s a good idea to have some funds to fall back on. Make sure to factor this into your initial startup business loan plans so that you request the right amount of funding.
2. Set defined goals
While you’re getting started on turning your passion project into a brand-new business, you may already have your long-term goals set—like expanding your customer base and advancing your career. But what about short-term goals? Have you given thought to the more immediate measures of success?
Clear, short-term financial goals are just as important as big-picture ones. Make sure to set and document monthly, quarterly, and yearly goals to keep yourself on track. Check on your progress regularly and adjust these goals as needed.
3. Create separate business and personal accounts
Set your business up for success by keeping your personal and business finances separate from the start. This is the easiest way to keep track of financing, budgeting, and of course this will come in handy for tax purposes. Keeping everything separate from the beginning ultimately saves you from future headaches.
4. Review your finances regularly
Prioritize your finances and regularly reassess your budget and goals—especially in the early stages of your business. This can help you establish a positive routine by the time you’ve gotten into the swing of things, so that your finances don’t fall by the wayside.
5. Ask for help when you need it
If you feel overwhelmed by the financial aspects of starting your own business, you’re not alone. Don’t be afraid to ask for help.
Whether you enlist a professional financial advisor or CPA or seek out a mentor who has been where you are, don’t hesitate to ask questions and request assistance.
Fuel the ideas that fuel you
By knowing what to do, you can start your business off on the right foot. And with our financial solutions, you can launch your passion project—fast. BHG has worked with hundreds of thousands of professionals to achieve their goals by providing large loan amounts with extended terms and affordably low monthly payments.
Want to see what our financial solutions could do for your passion project? Call our team at 866.280.5476 to learn more or see how affordable your goals can be by using our free Payment Estimator.