Four Tips Before Starting Your Business
According to research from the SBA.gov in a 2020 report of small businesses, North Carolina had a total of 934,604 small businesses. And despite everything the last year threw at us, the number of new businesses in the state continues to grow as many have been tapping into their creativity\, making the leap from side business or unemployment to self-employment.
If you’re exploring the idea of starting a business, you should know that in the first two years of a business’ life, an average of 68% survive. Then after five years, 49% of those are in business, and 34% make it to that 10-year mark.
The trick to being one of those survivors? Be well prepared with the right financial tools. To help, we collected the following 4 tips to help you start your business off on the right foot.
- Consider where you want your business to go.
Before you start, think about your daily life and understand your market. Why do you want to start your own business? Do you understand your industry or your customer base? What is your daily activity like? Do you have extra income?
Think about your long-term goals. What risks are you willing to take?
Then, think about your business idea. Do you have a business plan? How will you purchase necessities you will need to start out? Do you have a plan for growth?
Answers to these questions will be different for every potential business owner, but making a decision on these topics may lead you to tip number two.
2. Get your finances in order.
Start by making a budget for your business. Things to include might be the cost of supplies, equipment, rental fees for your storefront, travel, or anything else that is a requirement for your startup.
Next, consider your initial financial goals for your new business. Establishing financial goals (annual, monthly, weekly, and even daily) can keep you on track if you are planning to open or accept customers in the near future.
Need help sticking to the plan? Take our financial course on creating a budget, which teaches you strategies and tips to help you stay on track.
3. Consider how you will fund your business.
Once you have gotten an idea of what it will cost to start your business, you then need to think about how you will get funding for it, if necessary.
Not having all the finances at the outset can make you feel like your possibilities are limited, but taking out a business loan can give you the opportunity to launch and give you more control with your business.
For startups in particular, a SBA loan* option with First Bank can help you purchase business operations, buy equipment and inventory, and obtain working capital. First Bank can also provide business lines of credit, commercial mortgages, and other business loan opportunities with flexible terms and competitive rates, giving you the tools to manage your business.
4. Implement a system to continue managing cash flow.
The key to success for any business is how it handles its cash flow from payments in and out to the flexibility to make purchases but then adjust to unexpected events. Here are a few tools you can explore:
- Checking Account
Another option for your business would be a checking account. First Bank offers several options to choose from. If you are a small business with basic banking needs, the Business Essential account would benefit you. It’s simple, yet offers the support you need from the very start.
Our Business Elite Checking account is perfect for small to mid-sized businesses currently using or wanting to use Treasury Services. Owners can enjoy debit card rewards bonuses and peace of mind, knowing that extra security features are in place to protect from identity theft and data breaches.
- Business Credit Card
Having a business credit card is also an essential cash flow aid for business owners. A credit card, such as our Mastercard Business Card with Rewards, provides continuous resources to help keep your business profitable while giving you the chance to earn rewards on business expenses. A business credit card can also give you the opportunity to boost your credit rating when you pay off your balance regularly.
Autobooks (demos available) makes it easy to send invoices, pay bills, and receive payments all online (and even via text!). Autobooks also allows you to streamline accounting processes and lets you manage your financial health with real-time reporting.
- Savings Account
Having a business savings account will allow you to prepare for business emergencies, protect your money, fund business projects, and more.
If you are just starting out in business, an account such as our First Bank Business Savings account may be a good option because it provides business owners with a spot to deposit excess cash and easily earn interest.
Merchant Processing and Online Direct Deposit are additional ways to help manage cash flow. These services can be grouped with Autobooks for your business. Additionally, Merchant Processing, Online Direct Deposit, and/or Autobooks services qualifies your business for our Business Elite checking package.
Ready to jumpstart a new journey? Our business section outlines other tools that can help your business reach new heights.
Once you have decided and formed a plan for your business, it’s a great idea to speak with an experienced business banker to create the best plan for your goals. No matter what stage you are in with your business ideas, we can help.
Visit one of our branches across North Carolina and South Carolina to talk with your local team, or you’re welcome to fill in the form below and we’ll reach out to you.
We want to see your business soar! So, what are you waiting for? Write your ideas down and start planning toward a better future today.
*Loans subject to credit approval.
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