Is Your Bank Account Stopping You From Being Your Own Boss?*

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*This is a collaborative post*

With the internet, it has become both easier and a lot cheaper for anyone to be their own boss. But that doesn’t mean that you don’t need some funding, nor the financial sense to use it right. Here, we’re going to look at what elements of your financial situation might be stopping you from working for yourself, as well as habits you had better learn once you get up on your feet.

Figure out your expenses

Before you go about getting your money, first of all consider what you’re actually going to use it on. If you don’t already have one, a proper home office should be at the top of the list, as well as a printer, scanner, and any other hardware or software you need to better do your job. If you’re hoping to become fully self-sufficient and use your newfound business as your prime source of income, don’t forget about branding and marketing costs either. Spend time constructing your budget with research so you don’t miss anything you may later rely on.

Finding your funding

When you have your budget set out, then you have a funding goal to meet. If you have a job, then sticking with it to build your savings and it might help you get there. Getting a specific business loan as a self-employed person can be difficult, but a personal installment loan can work much in the same way, helping you cover a lot of your costs with the plan to repay it through the business. If you need to make up some more savings, think about freelancing as a gig on the side before you take it full-time. It’s a good chance to test out how your business might work before you devote yourself wholeheartedly to it.

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Keep it separate, silly

Once you have your funds in order, you have to ensure you hold onto them long enough so that they do what they’re supposed to do. The biggest risk to your business finances is that you accidentally spend them on personal expenses. Keeping them separate is the best way to avoid that. Beyond some distance between your two financial worlds, it makes it a lot easier to account for the costs of the business when it comes to tax season.

Know where the money goes

Once you start making money, it might be tempting to either pocket all of it or put all of it back into the business. But it’s a much better idea to set up a money management plan up front. No matter what you earn, a certain percent should always go to a few specific places. Your earnings are one of those important places, of course. The business account, the taxes you have to pay, an emergency fund, and your retirement are all other priorities you need to seriously consider.

If you really want to run a respectable business and not just be another faceless freelancer, you need to invest in your business. Hopefully, the tips above give you a few ways of doing that.


*Contributed by Sam Jones

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