75 Tips for Starting Your Own Business

Before you do anything else, you need to have a concrete plan in place in order for your business to get off to a strong start. A good, thorough business plan gives your venture direction and purpose, and it helps guide your decisions as the owner. Your business plan is also what you show to lenders, investors, vendors, employees, customers and potential partners in order to secure the growth of your company. Failing to map out your business’ future could spell out failure for you in the present. Here’s how to get started on creating your business plan.

1. Do your research. Gather the tools and resources you need to start your business plan, such as books and/or software programs. Seek help from your local Small Business Development Center or SBA, and consider signing up for courses at a nearby college or university. You can also hire a consultant to help you, but they might cost you a pretty penny: A good consultant can charge up to $300 an hour, and the price tag for a full business plan can run anywhere from $5,000 to $10,000. So if you find that you do need the services of a consultant, try to use them sparingly.

    

2. Back up your ideas with numbers. A business plan isn’t just about your creative vision; it’s also very much about giving solid, measurable financial facts about your business. Without those financials, your business plan is worthless. If you want to recruit the help of lenders, investors and the like, your calculations will need to be as accurate and clear-cut as possible. A good approach to take is to first write down your concepts and visions, and then translate them into dollar amounts. For example, if you’re planning to advertise frequently, figure out how, where and how often you want to advertise, and then find out how much it would cost you. You can then plug that number into your advertising costs.

    

3. Be realistic with your projections. You want to neither overestimate nor underestimate your revenue and expenses. For better-looking estimates, you should narrow your focus onto a smaller, more realistic target market and calculate your revenue and expenses based on that market. Start off by identifying potential customers, then start shaving off the excess: Remove those who don’t need or can’t afford what you’re selling, whom you can’t effectively reach with marketing, who aren’t ready to buy your product, etc.

    

4. Include all the necessary projections. These include monthly cash-flow projections for your first year, a three-year profit and loss projection, and a projected balance sheet. Calculate the point at which your revenue and expenses will break even and when your sales will begin to cover your costs. Double-check the validity of your numbers by researching the financial ratios that are specific to your industry and making sure yours are realistic. If your projected profits are significantly higher than the industry standard, you may want to go back and revise your calculations.

    

5. Be conscientious about marketing. Think about the goals you want to accomplish in your business. Then conduct a market analysis by identifying your target market, researching your competition and evaluating market trends. Based on your findings, create a marketing strategy, which should include information on how you plan to approach sales, promotions, advertising, public relations, customer service, networking, community building and more. Make a plan for implementing that strategy, and set benchmarks to gauge whether or not your plans came to fruition.

In an ideal world, your product or service would appeal to people of all ages and all walks of life. In reality, however, every successful company focuses on and caters to a very specific target market. You may feel the desperate need to get business from anyone, but you need to take a step back and think about with whom you want to be doing business. Rather than scattering your efforts and wasting time and energy, you’ll have a better shot at success if you keenly target the right prospects and attract a specialized customer base. Keep these customer-targeting tips in mind:

6. Don’t make assumptions. Do your homework and figure out what exactly your target customers want. For example, if you’re running a catering business, your customers may not only be interested in how good the food is, but also how beautifully you present it. If you make assumptions about what they want and fall short of their true expectations, you’ll lose your customers. Right now, your customers are most likely shopping elsewhere for your product or service. Do your due diligence and check out how your competitors are handling their marketing and how they draw on their customers’ needs. Then ask yourself: What can I learn about my clients from this, and how can I take it a step further to offer them something my competitors can’t?
    
7. Figure out who your ideal customer is. You have your goals, and now is the time to think about what kind of customer base will help you achieve them. To help you identify your target client, ask yourself a few important questions. Do you want to target a business or an individual? How much money do they make? Where do they live, and is location a big factor in their decision to buy what you’re selling? List as many identifying characteristics as you can, and tweak your plan to keep those particular customers satisfied.
    
8. Separate your target customers into different segments. As you identify key characteristics, you may begin to realize that you have more than one target customer profile. For example, your catering business may appeal to both affluent families who desire elaborate holiday spreads, as well as middle-class families who need nothing more than simple everyday meals. Organizing your customer base into these distinct categories helps you to fine-tune your business goals.

    

9. Take advantage of free resources. A quick search on the Internet will provide you with a wide array of informational resources such as websites, blogs and forums that will help you conduct thorough market research. Bookstores are also filled with books about targeting customers, and you can even see which market segments are growing in your area by referring to the free market research sources available in your state or county.
    
10. Focus on good service. Bad customer service will cause you to lose business a lot quicker than a bad product will. The greatest marketing tool you can use to your advantage is your reputation for excellent service. When you treat your customers well, they will return the favor with their loyalty, good reviews and great referrals. 

     

Names say a lot about personality, and your company’s moniker should be nothing short of unforgettable. If you pick a weak name, you risk either losing the attention of your customers or spending a ton of cash on hiring a firm to come up with a better option. Both could cost you thousands. Naming your own business can be done, as long as you do it right and give it the good amount of thought it deserves. Grab a pen and paper, tune in your senses to everything around you, and follow these tips to come up with the perfect company name:

11. Think in terms of marketing. Start by asking yourself: What kind of advertising will drive 90 percent of my business? Will it be print ads, radio or TV commercials, online advertisements, signage, or a combination of everything? How you answer those questions will tell you a little bit about some important factors you have to take into consideration. For example, if you plan on primarily advertising on the Internet and radio—where simple spelling and pronunciation are vital—you’ll want to stay away from company names that contain alliterations, foreign words or hyphenated phrases.
     
12. Check out the competition. Put together a list of your competitors and analyze how their names fit the market. Are they speaking your customers’ language? Think about what does and doesn’t work and use those findings to narrow down your list of name options.
     
13. Brainstorm. Write down anything and everything that comes to mind, no matter how out-there it may be. Come up with key words and phrases that appeal to your target market and that aren’t currently being used by your competitors. Thinking about the end result your customers get out of your product or service may also help you craft a standout name for your business.
     
14. Avoid negative associations. Some names may sound clever at first but leave a sour taste in your mouth when you say them. A turnoff name could turn your customers away from your business before they even give you a chance. Check each option to make sure it doesn’t have a negative or offensive underlying meaning or tone, and ask for feedback from family and friends. If anything sounds even slightly iffy to you or a loved one, take it off the list right away.
     
15. Do a trademark search. Nothing could be worse than moving forward with a name that you like and then finding out that it’s already been registered as a trademark by another company. Before you make any big decisions and spend time and money on logos, websites or other marketing materials, do a quick search first to find out if the name you selected is legally available. You can easily search for registered trademarks at www.uspto.gov.

In order to choose the right legal structure for your company, you first have to decide which legal jurisdiction you want to fall under. When you legally base your venture in your home town, you have more control of the operations and it is much more convenient than incorporating in Nevada or Delaware. Once you’ve made the judgment call that best suits your needs, use these tips as a guide to help you decide on a legal structure.

16. Think about your stamina for handling liability. Different types of entities offer business owners different kinds of protection against liability. As a corporation or LLC with employees, you are given the best protection against being held personally accountable for the actions of employees or others. A sole proprietorship offers zero protection, while a partnership holds you accountable for yourself and your partner. There is no such thing, however, as a legal structure that totally safeguards you against personal liability.
     
17. Take into consideration your access to capital. If you are a sole proprietor, the only way you can get your hands on money for your business is debt financing. With a partnership, you can borrow money and ask partners for capital. When it comes to corporations and LLCs, you have more room for acquiring investments. For example, you can generate capital by selling equity. This could be another determining factor in your selection of a legal structure.
     
18. Take paperwork levels into account. In most jurisdictions, business licenses and name certificates are the only compliance issues sole proprietors have to worry about. Regulations and filing requirements on the local, state and federal levels, however, increase significantly for corporations, LLCs and partnerships.
     
19. Get familiar with tax laws. Sole proprietors have full personal tax liability for their business’ profits. On a positive note, you can deduct the business’ losses on your personal tax return. A C corporation is a taxable entity, and any money that is paid to you or other owners as a dividend is also taxed, so the money is taxed twice. With an S corporation, on the other hand, profits are passed along to you without being taxed at the corporate level. Dividends and distributions are also considered passive income with an S corporation, so they aren’t subject to payroll taxes. Although LLCs can be set up like a C or pass-through S corporations, an LLC that chooses to be taxed like a pass-through S corporation isn’t treated as favorably as a true S corporation. Passive owners of S corporations have special risk because they are taxed on their distributable share of the company’s profits. If an S corporation’s active owner-manager decides to put profits back into the company instead of distributing them to shareholders, a passive owner could have to pay taxes on money they didn’t receive. So if you decide to build an S corporation, make sure you’re actively in control of it, or establish safety measures to ensure that you’ll get enough money to cover taxes and distributable profits. 

When you’re starting up a business, there are sure to be times when you’ll need the expert advice of an accountant or a lawyer. It is impossible to know everything about every aspect of running a business, so enlisting the help of a professional is almost always a necessity. But, of course, you shouldn’t hire just anyone. Here’s how to find the right expert for you and your startup.

20. Think about your future. Ten years from now, your company will not be the same company it is today. Whom you pick as the attorney to have by your side is a crucial decision, especially if you someday decide to go public or seek venture capital. To succeed, you’ll need a lawyer who has extensive experience dealing with those types of situations. Do some online research to learn more about any attorneys you are considering, and check out legal search engines like Martindale-Hubbell to see lawyers’ ratings based on expertise and ethical conduct. You can also talk to people at the local chapters of entrepreneurial organizations to get referrals.
     
21. Get an accountant and/or bookkeeper. Working with a CPA to lay the financial foundation of your company is well worth your time and money. Once you’re done setting up the groundwork with the help of a professional, you can opt to purchase convenient financial software, like QuickBooks, a couple of years down the road. Freelance bookkeepers are a great resource as well; just make sure they have “full charge” bookkeeping skills, which means they can effectively and skillfully interact with CPAs.
     
22. Bundle your services. Some professionals offer bundle packages when you pay for more than one of their services, which works to your advantage. Find out if the firm you’re considering can do this for you, and ask them if they can provide a few services for one flat rate instead of billing you hourly—especially everyday tasks like drafting employment agreements and incorporation papers. Lawyers are virtually always willing to negotiate, and some legal websites can take care of all the basics of business incorporation. But be careful; you get what you pay for.
     
23. Narrow down your choices. When you’re considering working with a financial professional, it will benefit you to ask them if they have a preferred industry to work in or what size company they like to work with. This will give you a good idea of how much time, effort and care they will put into your business. Also, ask the professional to provide you with a one-pager about what they will do for your company, which will help you ensure you’ll get what you sign up for.
     
24. Build rapport. If you find a lawyer, accountant, banker or other professional that you particularly like working with, don’t lose touch with them. Actively build a relationship with them by reaching out to them every six months to ask them about their new offers and update them on your business news. If that professional tries to bill you for that time or simply isn’t willing to meet with you, then that’s a red flag that you probably shouldn’t be working with that person at all. Any professional you work with should show more genuine interest in your company—not in finding more ways to make money.

Lack of funding doesn’t necessarily have to get in your way when you’re starting a business. Don’t overwhelm yourself with the idea that you’ll need a lot of money to launch your venture. In fact, many successful businesses were started on slim funding. These tricks will help you get the startup money you need.

25. Consider self-financing. There are several ways to do this, such as dipping into your personal savings, taking out a mortgage or rolling over credit card offers so you can always have a low interest rate. For example, you can start with a credit card that offers a low interest rate and then move on to another one when that interest rate expires.
     
26. Seek stakeholder financing. When you ask a client to pay you in advance for future services, you can use those funds as seed capital. This is not an uncommon practice, and it’s often used in industries such as construction, when a homeowner pays a builder a portion of the building costs upfront in order to get the project started.
     
27. Ask friends and family for help. Your loved ones are more likely to be personally and emotionally invested in your success, and they are usually more than willing to help you out if they can. Interest rates and terms associated with funding that comes from friends and family members are also usually much better than those offered by other sources. Always remember to draw up official documents for loans, and consider converting the debt into equity if your business reaches specific sales milestones.
     
28. Ask suppliers for an extension of credit. Suppliers are generally willing to do this for startups. Request the option for paying in 30, 60, 90 or more days for the supplies or inventory you receive. Usually you can do this and pay a low interest rate.
     
29. Talk to your landlord about your financial goals. At some point, your growing business will need to be operated out of its own storefront. Landlords will often give startups three months rent-free, or they may outfit the space with features you need for your business, free of charge. These offers are often made in good faith that you will eventually become a long-term paying tenant.
     
30. Approach financial institutions at the right time. Financial institutions like working with new businesses that have sales, accounts receivable and short-term financing needs. Once you have an operating history, start with a revolving line of credit and earn the financial institution’s trust by paying it back promptly. Then, you can move on to larger, longer-term loans with more desirable terms.

It’s all about location, location, location. Where you set up shop is one of the biggest and most impactful decisions you’ll make for your business. Although you can change your business strategies, you can’t really change a mortgage or lease, which is a binding long-term contract. So before you sign those papers, take these important steps first:

31. Get to know your market. Certain businesses can succeed anywhere, but others have to be located in very specific places in order to flourish. Think hard about your target market and where they live, work and play, and think about the environment your business will need to survive. You may even come to the decision that you don’t even need a separate location and can run your business from home. This could be a viable option for those who sell their product or service primarily online or via phone. If you choose to base your company at home, make sure your customers will feel comfortable conducting business at your house. There may be zoning laws specific to your neighborhood that regulate where home-based businesses can and cannot operate, so check with your local government before you settle in. Your neighbors will also appreciate it if you make sure they don’t mind your customers visiting your neighborhood and taking up a few extra parking spaces when they come to see you.
     
32. Do your research. Check out websites like www.economy.com to compile some economic data about any urban area you may be considering for your company’s location. This will help you spot trends among your target market.
     
33. Stay close to the competition. You might not think it makes sense to set up your business in close proximity to your competitors. But “clustering,” as it’s called in the business world, is an effective strategy that big-name retailers use in order to boost business, save money in shipping and hiring, and attract a much larger crowd. This is usually more effective than heading off somewhere on your own, while the majority of your customers are shopping elsewhere.
     
34. Put yourself out there. Statistics and demographics may look great on paper, but you get a completely different perspective when you actually go out and visit the locations you’re considering. Pay close attention to your gut reaction, and take note of the small things—like parking—that can make a big impact on your customers’ experience of your business. Central locations are great for in-and-out businesses, like dry cleaners. Also, if you’re hoping to expand in the future, make sure the location you pick provides enough space for additions.
     
35. Talk to other business owners. Swing by the other businesses that surround the locations you’re deliberating on and ask them what they think of the area. How much traffic does the location get? What’s the business turnover rate in that area? What time of day is busiest for that particular spot? Getting this “behind the scenes look” could give you a lot of information that you couldn’t hear anywhere else. 

When you’re running a business, you’ll need a lot more than a simple laptop computer. Planning for your future technology needs and making smart purchases will help your business to not only get started, but also run smoothly in the future.

36. Begin with a network. It’s important to start with the bare bones of your technological structure. You’ll first need a client/server-based network operating system and at least one server with file and printer services that is configured to back everything up.
     
37. Set up a dedicated Internet connection. Look into DSL, cable or another high-end option like a T1 line, which can handle up to 100 users simultaneously. Make sure you have sufficient broadband bandwidth to handle any current or future employee use. Be wary of low-end options: You won’t receive the service-level agreement, which means the Internet provider can take their time to fix any connection problems you might experience—leaving your business in a rut.
     
38. Protect your computer(s) with antivirus software. This is an absolute must, especially since your computers will contain sensitive business-related information. If you have multiple computers, consider getting a package deal rather than installing separate applications on each computer; it will be much simpler to manage and it will make your life much easier.
     
39. Back up everything. Data backup is another must—no questions asked. Losing your business files would be a complete disaster, so the importance of backing up everything can’t be emphasized enough. You have a few different options for doing this: tape backup, an old-fashioned fallback that requires monitoring; offsite or online backup through a third-party provider; or network-attached storage that you install in your office. To guarantee the safety of your information, use two out of the three backup options rather than just one.
     
40. Buy your computers in bulk. Rather than purchasing the machines one at a time, get multiples of the same computer at the same time. That way all of your computers will have the same hardware, they won’t require extra maintenance, and they won’t cost as much. Stick with big-name vendors and remember to get a warranty and service contract.
     
41. Get the right printer. Every business needs a heavy-duty printer that is network-capable and can handle big print jobs in both color and black and white. They are now more affordable than ever, so don’t waste your time or money bringing your documents to an expensive local print shop.
     
42. Get help when you need it. Not everyone can afford to have a dedicated IT department for their company, but you will at least want to bring in an IT expert to help you set up your network properly. As the busy owner of a startup, you won’t have the time to do it yourself, so it’s better to get everything running smoothly from the start.
     
43. Think ahead. Laying down the groundwork described above is helpful not only during the beginning stages of your business, but also for the future. When it’s done right, you’ll be equipped to easily and efficiently add more employees as your business grows. Remember to factor ongoing IT expenses into your budget, since your network will require regular maintenance once it’s set up. 

It is important for anyone who is starting or insuring a new business to become familiar with potential risk. Insurance can cover many different risks, but not all risks. Here’s how to go about determining the level of coverage you need.

44. Talk to a professional. Business insurance can be a tough thing to tackle on your own. A good advisor will help you better understand the risk associated with your business and then select the appropriate insurance to protect your company against it. Seeking a licensed insurance agent who represents various carriers is the best way to investigate the widest range of policies.
     
45. Consider what types of risk your business might be prone to. One might be property loss, which includes the loss of the building or business property (e.g., product stock, machinery, computers, etc.). Loss could be due to fire, flooding or other kinds of disasters.
     
46. Think about your liability. If someone experiences injury or property damage that was brought about by the business in any way, your company could be hit with a lawsuit. A good advisor will help you put together an umbrella liability policy that will keep you covered in such a situation. Because employees can get hurt on the job, workers’ compensation insurance is also required for most businesses. Try to think of what other risks may be involved in your particular business type and decide whether or not coverage is necessary. For example, if you’re running a restaurant that serves alcohol, you’ll probably want to get coverage for liquor liability in the event that a customer gets into an accident after having a drink at your restaurant and tries to sue you for not properly serving alcohol.
     
47. Explore your options. Once you have a good grip on your risks, compare the policies offered by different insurance providers. Choose wisely.
     
48. Don’t get too comfortable. Even with insurance, you won’t be covered for everything. There are some things that you simply won’t be protected against, no matter how comprehensive your coverage is. You’ll need to be diligent about taking extra precautionary measures to minimize risk, such as training employees on safety procedures. This will also help reduce your insurance premium if it is too costly.
     
49. Be on the lookout for new risks. If something suddenly comes up that you’re not covered for, be proactive by getting additional coverage or managing the risk in another way. For example, if you’re running a business in an area that is hurricane-prone, then you might want to get flood insurance in addition to hurricane insurance, since hurricane insurance will not cover any damage caused by flooding.

At first, it might be fairly easy to run the entire startup by yourself. But as your business continues to grow and thrive, and as the responsibilities become too much for one person to handle, you’ll need to bring some helping hands on deck. The people you decide to hire can make or break your company, so it’s imperative that you come up with a strategy before you even start looking for your first employee. Use the following tips to ensure your hiring process is fruitful.

50. Complete the appropriate paperwork. First, get an employer identification number (EIN) to provide in your IRS documents once you start bringing employees onboard. You or your attorney will have to fill out the IRS Form SS-4, which you can download at www.irs.gov. When you have employees working for you, that means you’ll have to pay state unemployment compensation taxes and workers’ compensation insurance. Your accountant will help guide you through the complex employment regulations at the local, state and federal levels.
     
51. Figure out what you need. Make a list of duties that need to be fulfilled for the job, as well as a list of skills that will be needed for an employee to do the job well. Think about how much you can and will pay the employee, and hire the person who is best equipped to perform the tasks. Just because you might personally know someone who wants a job doesn’t mean they’re the right person for your company. Know your requirements, and find the person who fulfills them.
     
52. Build a deeper talent pool. Post job openings at local schools, colleges and job centers. You can find some of the best talent in the most unexpected places. Get creative and tap into possible employee resources that others may not have considered. Hiring interns is another great way to test out talent and scout potential hires.
     
53. Brush up on your interviewing skills. Until you started your own business, you probably weren’t the one asking the questions at interviews. Now that you’re doing the hiring, it’s important that you get the information you need from interviewees and avoid asking them inappropriate questions, which could be detrimental to your company. Although engaging in a certain level of personal conversation is OK when you’re trying to break the ice, asking a candidate certain things—like if they are married or have kids—is illegal. Also remember to make sure a potential employee is not restricted to work for you due to another binding contract.
     
54. Communicate. In order to keep morale and performance up, you’ll need to keep an open line of communication with your employees. Be clear on training procedures, job expectations, company goals, payment schedules and more from the get-go. Provide your employees with performance reviews every three months, and consider giving them a raise every six to 12 months. Find out what motivates your employees, and assign them with projects that will inspire them. Keeping your employees satisfied will in turn keep turnover low. 

No matter how amazing your product or service is, it’s all for naught if people don’t know about it. Here are some effective marketing tricks you can put into action so your business can get the attention it’s worthy of.

55. Give your customers a believable reason to love your product or service. Don’t think that, just because you have a great idea, people will frantically rush to pay for it. In order to grab the interest of your buyers, you’ll need to market your product or service and build its credibility. Tell people why your product or service is so great. But do so in good measure: If you begin to exaggerate things, then your customers will lose their trust in what you say. Rather than saying “Our pizza is the best in the world,” say “Our pizza has superior taste because we use fresher ingredients than our competitors.” Honesty and authenticity go a long way.
     
56. Send the right message. When communicating with customers about whatever it is you’re selling, don’t just shower them with a long list of features you think they’ll like. Instead, tell them how they will benefit from your product or service—how it will affect their lives. Customers want to know what’s in it for them. Otherwise, what’s the point? Pinpoint the one thing that sets you apart and makes you relevant, and use that to catch the market’s attention.
     
57. Figure out your messaging first, and then advertise. As a new business owner, you’re the perfect target for media reps that are looking to sell advertising spots. Although advertising on different media outlets like print publications, TV, radio or the Web should be a big part of your marketing plan, all that money spent on selling your business is wasted if you’re not sending an effective message. So before you spend all that money, make sure your message is right.
     
58. Experiment. Having trouble choosing between different messaging? One way to make sure you hit the nail on the head is to test out your options. Use different tactics, like mailing postcards with different offers or trying various phone sales pitches. Keep track of your results, analyze what works best and see if you can improve it even further.
     
59. Prepare to commit yourself. Once you’ve settled on a marketing and advertising plan, you’re in it for the long haul. Marketing your business doesn’t end once your company is launched; it continues to grow with your business. The key to bringing new customers to your door for years is to maintain consistent and effective marketing efforts. 

Getting your product into your customers’ hands requires a detailed game plan. Here’s how you can set things into motion.

60. Be confident in what you’re selling. Make sure you have a deep understanding of the benefits of your product or service. That self-assurance will be noticeable in everything from your tone of voice, to your facial expressions, to your body language—making your sales pitch a lot more effective.
     
61. Don’t let rejection get you down. You will inevitably hear a lot of “nos” before you hear one “yes.” Don’t give up. Even if you don’t get the response you’re hoping for, you’re still making progress by getting out there and making a connection with your customers.
     
62. Don’t stop at the sale. After a customer makes a purchase, pick their brain and ask them why they decided to do so. Pour this feedback right into your product or service, using it to amplify future sales pitches.
     
63. Prepare for sales cycles. Every business falls into its own natural sales cycle. There may be seasons when business is booming, and times when sales go into a lull. Do some digging around and find out when the peak sales seasons are for your industry and your competitors. Knowing when sales are more likely to happen will allow you to prepare for it ahead of time.
     
64. Share your knowledge with your customers. Time spent simply telling your customer about your product or service is time wasted. Take the time to share your expertise with your client and show them how you’re above the competition.
     
65. Use the right outlets to deliver what you’re selling. When it comes to bringing your product or service out onto the market, there’s no shortage of options for channels through which you can sell. Whether you’re thinking of selling via a retail location, catalog, website or independent distributor, pick the one that will maximize your profits the most. It’s OK to change your original plans: At first you may have thought selling at a retail location would be best for your business, but then you may realize that selling online is more profitable. If you have more success with one channel over the other, make the switch.

Maintaining tight control of your money and making sure your books are balanced is vital to your company’s success. It all starts with inexpensive, easy-to-use accounting software specifically tailored to small businesses, which will help you with invoices, payments and more. Once you have that, use these tips to get your finances in order:

66. Complete a cash-flow projection. One of the first financial tasks you should tackle is to figure out what your cash-flow needs and supplies are. Calculate how much revenue you’ll have to generate in order to be able to pay yourself, since you won’t be able to take money from the business to pay for your personal expenses. If the outlook isn’t good, then you may want to reconsider moving forward with the business.
     
67. Start a business checking account. Keep your business and personal funds separate; mixing them together could pose financial and legal risks for your venture. Using split accounts also lets you more easily identify your business expenses, since they will always be drawn exclusively from your business checking account.
     
68. Ask the pros for help. Compile a list of financial questions, and ask an accountant from a small, reputable firm to help you answer them. Offer to pay them for a couple of hours of their time, and ask them about things like how you should set up your books, what tax returns you need to file, and when you should file them.
     
69. Build a connection with a financial institution. Even if you’re not yet ready for a loan, stop by a local branch and introduce yourself to the manager. Tell them about your business and how you’d like to work with them in the future. When you’re eligible for a line of credit, consider getting one, drawing it down and paying it back. Retiring a line of credit in full is a better option for a small business than a long-term loan.
     
70. Keep careful records. This is especially important if you plan on selling your business in the future, since the business that you’ll sell will have to be of value. This value is based on the valid proof that your business is making a steady profit. If your value is increasing, you can one day sell potential profit to someone who thinks they can bring even more success to the business.

Keeping those accurate business records will also pay off when tax time rolls around. It’s your biggest shield against tax issues, and it helps you save money. Make sure you remember these important tips when the time comes to do your taxes.

71. Check your payroll. Even if you’re the only person working for your business, payroll is one of the trickiest areas that could get you into trouble with the taxing authorities if it’s not done correctly. Even though it’s not easy to project how much income you’ll make a year from now as a startup, you’re still legally obligated to make estimated quarterly tax payments.
     
72. Carefully estimate income, social security and medicare taxes. Things get even muddier if you have a full-time job in addition to running your startup. If these estimations aren’t taken care of properly, then you may be hit with a penalty and interest. Do your research or ask a tax professional for advice to make sure you get the job done right.
     
73. Get the help of a tax professional. When you have employees other than yourself, doing your taxes becomes a lot more complicated since you have to withhold taxes from each of your employees and report it on either a quarterly or monthly basis. To avoid making costly mistakes, it’s worth it to bring a tax professional on board at this juncture so they can file your taxes for you.
     
74. Keep track of your mileage. If you have a personal vehicle that you use for your startup as well, keep a running record of how much you use it for business purposes. Write it down every time you pick up materials, make deliveries, go on sales calls, take clients out to lunch, etc. Having these things documented will let you deduct accurate operating expenses for the business use of the vehicle. Not only is it a tax break that can put thousands back into your pocket, but it also prevents you from getting into trouble with the IRS.
     
75. Keep retirement in mind. Retirement may be a long way down the road, but starting a retirement plan now is a great way to save a lot of tax money. With an IRA, a 401(k) or any other retirement plan, you’ll get an instant tax deduction and your money will accrue, tax-deferred, until you withdraw it upon retirement (or earlier, depending on the rules).