If you are among the many people who are thinking about starting their own business ventures from their homes or elsewhere you need to be cajoled into devoting some time to think about your financial structure before you start off with business all of a sudden. Though you may be the boss of your own money, it makes sense to get a full and detailed summary of your financial standings before you find yourself in a soup.
While starting a business from home or for that matter starting a business in general you need to think about the following three points regarding your debt and credit:
2. Credit cards
3. Resellers certificates
As a businessman you will be subject to a number of collections and payments that might come in and go out every day. The cash flow needs to be maintained and there is no better way than having a savings account to help you with this work. By keeping a separate account for your business deals, you will be sure not to utilize money that is meant for your personal need like house expenditures etc. Also possessing a bank account will help you assess the tax payment that you ought to pay to the government. Try to find banks that offer good schemes for such types of business ventures as you might end up saving more money than estimated with the number of discounts and offers that might come your way. Keep in mind that now a day’s almost all banking is done through online money transfer portals and here is where the danger lies. There have been cases where in scammers have fleeced the accounts of gullible customers after obtaining their passwords and important data through illegal means. Businesses should possess two accounts one, which takes care of daily transactions, while one, which is a dedicated checking account. You can link these account together and now even if the account connected with a money transfer portal is compromised you needn’t worry.
2. Good credit (making use of credit cards)
Making use of credit cards is another way to segregate business expenses with home expenses. Also by making use of a credit card you can hope to build reserves of good credit. You should also remember to pay you credit on time to avoid getting into the bad book of the bank. There are a number of credit card companies out there and it is up to you to decide which one offers you the best possible services that coincide with your business needs.
3. The resellers certificate
The last thing that you need is a valid reseller’s certificate if you want to sell goods. This is necessary as you will be able to get goods from the distributor without shelling out taxes but you will be responsible for getting the taxes from your customers.
Keep in mind customer service, simplicity and remember that the impression you cast on your customers the first time is the last impression thus try to make it the best.