7 Ways to fund your p assion project

​You have finally done it! 

​You are mentally prepared to launch your own business.  The battle of second guessing yourself is over.  Keep in mind, that when you own your own business, there will always be something to do.  Without a doubt, you can handle this challenge you have embarked on yourself because of the pure combination of brains, ambition and bravery.  As you step out, be bold about it -- by understanding how to build a financially healthy business.
 
It’s no secret that capital is needed to fund any business.  When just getting started, it is important to first be realistic about how much is needed to fund your business venture and where the funds will come from.  Ask yourself, do you have enough in savings or will you borrow from family members?   Ideally, if you are still working a 9 to 5 job, you will be using those funds to build your business.  Don’t elude the importance of how much of your personal funds are necessary to maintain personal expenses, such as monthly mortgage and utilities.  

Believe it or not, one of the key reasons entrepreneurs do not survive past five years is due to the process of poor accounting.  For you, that will not be the case.
 
Here are 7 key actions to consider when funding your passion project:
 

• Passion projects deserve a carefully designed business mission and vision so that you can stay afloat long enough to show profit.
• The early stages of business may bring in less funds, which means you ideally need to spend less. If you set goals within reason, you can easily find ways to spend less and live within your means.
• It will be important to not take on any new debts. No new loans for cars or equipment.  The less monthly liabilities you have the more comfortable you will be with starting a business.
• Create clear boundaries between your personal and business finances.  When funds for the business decrease, having a separate account will make it easier to identify business expenses and know what needs to be cut.
• Open a Retirement account as soon as you make the decision to start your own business.  The earlier you start saving, the longer your money will have time to grow.  Even if it’s as little as $75 a month, which equates to $18.75 a week.  That’s a Starbucks coffee and lemon pound cake, right?
• OMG!  Don’t forget the taxes.  Once you become a business owner, it’s no longer an employer’s responsibility to withhold Social Security and Medicare taxes from your paycheck.  That responsibility now belongs to you.  Many business owners forget to save for this during the year and find themselves in a bind when it comes time to report and pay to the IRS. 
• Don’t’ rush.  Your overall goal is to either leave your 9 to 5 and never return or build a business from the ground up that will support you and your family without you ever having to go and to apply for another 9 to 5 job.  Therefore, start working your business part-time.  It’s imperative to remember that one client doesn’t start a show.  You need to have multiple clients on your list before into full-time business owner mode. 

 
Will it require some amount of risk to start a profitable business?  Absolutely!  However, in the process, you should not lose your passion.  If you prepare yourself financially for the risks ahead, you’ll provide your business with the necessary runway to take off.
 
Putting in the time and effort up front to stack the odds in your favor and will help light the everlasting fire of entrepreneurship.
 
Please email us, [email protected] if you should have any additional questions or need business support with the development of policies and procedures or accounting.  

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