Overcoming Financial Difficulty When Starting a Business

Have you been thinking about starting your own business? The U.S. Small Business Administration reported in 2019 that there were 30.7 million small businesses in the U.S., which means you are definitely not alone. You may be wondering whether your previous financial troubles will get in your way of starting and running your own company.

The good news is: It’s possible for you to learn from your mistakes, obtain funding, and run a small business on a budget. Anyone can do it! Gulotta & Gulotta PLLC invites you to take a look at a few ways you can focus on getting your business up and running despite — or perhaps, thanks to — your past setbacks:

1. Learn from previous mistakes

This first step is obvious, but it may also be the most important. If you have had financial troubles in the past, it’s important to take a step back and determine whether your actions had any impact on those issues — and if so, how you can learn from those mistakes to build a stronger, more vibrant company this time around. For financial troubles in general, one of the most well-established pieces of advice is to see what your biggest problem areas are and take steps to address them.

2. Outsource startup activities

Once you make it to building your own business, you want to keep your startup costs as low as possible. On the surface, this may seem like it means you should do most administrative work yourself, your own taxes, or any number of other important tasks. However, some of these activities may not come easily to you, so it may make better sense for you to focus on the larger parts of running the business and outsource the smaller, day-to-day activities. Indeed, outsourcing your labor can help you decrease operating costs (not just startup costs) and allow you to focus on the core part of your business.

Activities that require a higher level of skill may also be candidates for outsourcing. For instance, you can hire freelance graphic designers to professionally create your branding, or a marketing consultant to maintain your social media presence. Some freelancers also offer remote HR consulting services that can help you onboard employees quickly and easily.

3. Take some courses on business management

If you don’t know where to begin or need a refresher, taking business courses to supplement your knowledge about how to run a company successfully could be the way to go. When in doubt, turn to education! Studying business management can equip entrepreneurs with subject matter expertise, help train you on the different situations that can arise when running your own business, and improve your ability to make effective financial decisions.

There are plenty of resources out there that will help you determine the right path when it comes to earning your new education about managing this dream business. For instance, should you do self-paced learning or instructor-led? How best do you retain information? These are all questions you should ask yourself before taking the leap into more education, but the fact remains: In business, you often don’t know what you don’t know — and if you come into business management without a formal education, it might not go well for you down the line.

4. Dial in your payroll system

Payroll can make or break your company. Ineffectual or mismanaged payroll can lead to disgruntled employees, high turnover, and can even affect you come tax time. This is why it’s crucial to take a proactive approach in having an organized and well-managed payroll setup. If you’re unclear on how payroll works, it’s essential to have a clear understanding of this key element to your business. Payroll defined is the process of calculating wages as well as state and federal taxes. This can be a company’s largest expense, so having a keen awareness will give you a better understanding of your finances and ensure you maintain compliance with tax and labor laws. Ideally, this is a task that should be handled by an in-house professional or outsourced to a business. If you have to manage payroll in-house, use a top-rated software system that ensures accuracy and efficiency. 

Put these all together

Learning from your mistakes, taking business courses, and outsourcing startup tasks can help keep your business in good shape and build a good foundation for the future. Your dreams are possible — just take it one step at a time!

If you’re planning to form a new business, turn to the services of Gulotta & Gulotta PLLC to help form your business entity. In addition to helping you formalize your business, we can also provide a customized employee handbook as well as employment contracts. Reach out today to schedule an appointment. 631.285.7000

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