Financial Tips for Entreprenuers

Entrepreneurs who combine their vision with professional advice and capital sources will be off to a great start. Below are some essential financial tips.

Choose the right entity type – This will affect your tax situation, risks and liabilities, how you have to keep your books, even how you can pay yourself.

Assemble professional advisors who understand entrepreneurs – Your college roommate may be a great attorney, but if her specialty is real estate, she’s not going to be the right choice to set up your corporation and give you good financial advice.

Find out about regulations and laws that affect your business – This can be good news or bad. Are there restrictions that relate to your product line? Are there opportunities in the tax code? If you hire a scientist or engineer, for example, ask your accountant about research and development credits.

Develop a business plan and projections – A good idea alone isn’t a business, and having a plan can help you secure funding. There are books and websites with simple templates for your business plan.

Select accounting software that fits your needs – QuickBooks is easy to use and has versions for many specific industries. Ask a financial professional to train you and help you set it up correctly.

Marketing plan – Your marketing plan is one of the key sections and must include an assessment of your competition. Who are they, what do they offer, and why are you better? Don’t forget your target market — who will buy what you’re offering, etc.