8.2 -- Ready? Not quite.

Before diving head-long into the world of actually running your small business, I need you to pause to consider some potential additional money concerns.

Your very first duty was to prepare a business plan to satisfy yourself that your idea when played out would not immediately bring economic suicide. And perhaps if you thought about it then you may have realized that there were going to be some front-end cash costs to your venture.

I want to visit that subject again – and appropriately shortly after I’ve suggested to you possible e

As you travel down the road of preparing to start this incredible business idea, you have got to have some front-end resources to get you there. Why? Because you will be using cash, precious cash, which will and must be expended before you even have a chance of getting your first dollar.

So let’s see if I can get you thinking about that because you may need to ask for a little more help from Mom & Dad, etc.

I assume you found a pad and pencil to prepare the first run at your business plan. I also assume that you have essentially unlimited access to a computer (not a smartphone or a tablet), a real computer [laptop or pc, Windows or Mac] and a reliable printer. If not that has got to be in your start-up budget.

Let’s start a list:

Item Comment Cost
Guestimates
Computer and printer
If needed. ?
Domain name Depends of where obtained. Please use reputable source that you can control. Discussed in Section 2.2.
$50
Quickbooks® or similar
I hope you plan to dry run some examples. (Section 6.1) $250
Rent Likely first month, last and security deposit unless you negotiate otherwise or you begin in your own home or garage.
?
Entity formation
Depends on d/b/a for solo, LLC or corporation. (State filing fees vary widely. But use your home state.) Please do not do this without the critical and essential aid of a competent business attorney, $150 -- $500
Business attorney
To advise on entity and create as decided. Answer other questions and/or prepare documents as they arise. $1,000
Insurance
Deposit needed or pay in full. $500
Office supplies Believe me, you will take a trip to the office supply store. And don’t forget the cost of bank checks. $125

You may think of others and if so include them. The point of all this exercise is that in addition to what you have determined to be necessary cash reserves as the business starts, you will also need some cash that will go out the door before you start. Be sure to include this in your needed-resources planning.

And finally, not only be conservative but add one more item – Contingency! That the phrase for “I don’t know what will crop up and surprise me but it will be something and I’d better be ready!”
8.3 -- Ready to go!

Let’s stop for a moment to review where we’ve traveled.

You, like so many before you and many to follow, are itching to put a business idea, your business idea, to the ultimate test. This book’s plan has been to make you “smarter than the average bear” and I have provided tools to enhance the potential that you might not only survive, you may prosper.

Thus I insisted that you first make a business plan – your first thoughtful setting down of your expectations of what running a business yields in revenue and the costs of getting it.

We then focused on your business name, followed by an assessment of the exposure risks of your business as a preamble to a discussion of the various business forms and tax consequences to enable the selection of the best form for you to at least start your business.

That followed with my effort to sort out how you should keep track of the money – for you to know whether you are winning or losing this ultimate goal to be an independent business owner. While admittedly complex that is a core part of every business.

Next, I shared some ideas in the event your own available resources – and starting a business does take some resources – are perceived to fall short of what’s needed.

Finally, I alerted you to be ready for some of the start-up budget needs.

So, if you’re still with me, I would judge that you’re ready to go. But you have to start sometime and slowly, so do it now!

Of course, there is more to learn as the material that follows will show. You can scan the table of contents for some of those issues often faced by independent businesspeople.