New Year’s Resolutions for the Entrepreneur

This article was originally published in the SBA South Florida January Small Business News email and is contributed by Marjorie Weber, Finance Consultant at Florida SBDC at Florida International University College of Business. From time to time, we here at TxCDC come across news and information that we believe benefits our customers, partners and employees. Enjoy!

Are you a business owner with plans to seek additional funding in 2015? Here are some excellent tips to consider before, during and after:

1. Do not go it alone. Seek counsel from other unbiased professionals: SCORE, SBDC and other community business.

2. Do set-up separate bank accounts for your personal and business funds.

3. Do not ignore the importance of having a good credit score. Use 680 as a benchmark.

4. Do commence business operations until all the needed funds are available.

5. Do not seek capital from a lender or an investor until you have prepared required documents needed to make a decision.

6. Do study the variables that relate to seasonality of your business when preparing cash flow projections.

7. Do not use short term debt for the purchase of equipment that has a long term life.

8. Do sign a lease (or any contract) only after you prepared a start-up budget, cash flow projections, and the required capital is available.

9. Do not sign a partnership or a joint venture agreement that does not have a buyout provision.

10. Do seek an unbiased professional review of the terms of the agreement before signing a lease.

11. Do not underestimate your operating expenses, or overestimate your income.

12. Do conduct background and reference checks before hiring new employees.

13. Do not ignore the importance of including a dollar value for the services you personally provide to the venture.

14. Do understand insurance requirements and the protections they offer for your new business.