Starting a new business with your recently achieved MBA is certainly an admirable aspiration. However, understanding how that’s done can be overwhelming. You will need to ensure that you are fiscally ready for that endeavor. So, take advantage of these tips for becoming financially ready to start your business.
First, if you are burdened by debt, whether it be from obtaining your MBA, or for other reasons, contact DCL Consolidation Brokers. They understand that sometimes debt sneaks up on you. But, with their help you can make a plan for paying down that overwhelming debt which will make a huge difference when it comes to your personal business dreams.
Getting Financially Ready for Your New Business
Eliminating your previous debt is essential to getting ready for your new business. And, once that is achieved you can move towards all the other steps necessary to get the business up and running. It may take you a little while to get fully prepared to be ready to go through these processes to ensure you are well on your way to making that dream a reality:
- Calculate your startup costs. Don’t just leave the company you currently work for and hope that a business will build itself. The SBA (Small Business Administration) estimates that you will need roughly $30,000 to get that business off the ground. However, this cost can vary based on what you intend to do and where you are located. Some businesses cost considerably more while others are significantly less. Learn more.
- Determine your living expenses. Now that you have your debt under control, it should be a lot easier to live off of less. But, all aspiring entrepreneurs need to plan how to support themselves in the initial stages of business development. It often takes a while for a new business to become profitable, and health insurance is quite expensive. These are all things that need to be taken into account.
- Build up your credit. You are going to need funding to get this thing going and no one wants to fund someone with a poor credit score. Or, if they do, their interest rates will be astronomical and hugely prohibitive. Make sure you have the credit to prove that you are a worthy risk for any potential investors. Read this.
- Think through your taxes. Self-employment taxes are very different from those associated with working for an employer. You will have to pay those taxes plus the regular federal and state taxes that are assessed. Considering your tax obligations will be key to determining how and when you are ready to begin the business. Make sure you track all your expenses and any potential write-offs as these will help reduce the amount you pay in taxes each quarter.
- Do your research. Everyone wants to see their business become a hugely profitable part of their lives. However, one of the biggest mistakes first time entrepreneurs make is miscalculating their profit margins. You have to know what your projected profits will be so that you don’t over invest in a company that can never pay you back. On the flipside, you don’t want to under invest and run out of product either. Research is the key to knowing how much you will need and when.
While you don’t have to be independently wealthy to own your own business, you will have to be smart about your future and current financial situation. You can learn more about starting a business here.…