Are You Thinking of Starting a Small Business?
If opening a business is in the cards for you in the next few years, here are a few pieces of initial advice to get you started.
Lack of marketing is the number one reason businesses fail, so don’t ignore it Ideally, a business needs both a website and a social media presence. One stat that puts this into context: 76% of customers will check a website before entering a brick-and-mortar location (if there is one).
Keep in mind that labor accounts for 70% of a business’s spending, and inventory is the second biggest cost. A lot of early-stage businesses rely on the help of family and friends before things get fully up and running, and artificial intelligence may be a great way to offset some labor costs
Separate your personal and business accounts. Doing so gives you a much better understanding of your business’s finances, makes tax preparation easier, and can protect your personal assets from liability.
Don’t wait until you have more money to get a financial advisor. Since this could come across as self-serving, wewant to be clear that this is genuine advice! We encourage you to work with a financial advisor who is a fiduciary as you’re setting up your business. When money is tight (as it often is at the beginning of a business venture), a strong financial plan is even more important. And it usually is more affordable than people think.
As a small business ourselves, our team is always happy to be a financial planning resource. If you or someone you know is planning to open a business, let us know if we can help. If you have questions, please reach out to us at 716-445-7465 or email info@buffalofirstllc.com.
