Focusing on Essentials: Priorities Every New Entrepreneur Ought to Emphasize (Yet Often Neglects)
You've made the leap and started your business, but now the real challenge begins. The first 30 days can feel like you're building a plane while flying it. Here are some crucial priorities that often get overlooked but should be at the top of your to-do list:
1. Separate Personal and Business Finances
It might be tempting to use your personal account for business expenses, but doing so can lead to accounting chaos, tax confusion, and legal vulnerability.
Why It Matters:
- Avoid tax season headaches: Mixing personal and business expenses can make tax season a nightmare.
- Improve professionalism: Showing clients payments from your personal Venmo account can harm your credibility.
- Protect personal assets: Failure to maintain financial separation can evaporate legal protections, even with an LLC.
Action Step: Open a business checking account and get a dedicated debit or credit card as soon as possible. Low- or no-fee accounts designed for startups are common.
2. Pick the Right Business Structure
Skipping the decision to formalize your business structure can lead to messy consequences later. While sole proprietorship might seem like the default option, an LLC can offer significant benefits, such as liability protection, tax simplification, and professional standing.
Benefits of forming an LLC early:
- Liability Protection: Shield your personal assets from business lawsuits and debts.
- Clean Tax Setup: An LLC simplifies reporting, and you can later elect S-Corp status if beneficial.
- Professional Standing: Clients take you more seriously when you operate under an official business name.
3. Draft a Simple Business Plan (Yes, You Really Need One)
You don't need a complex PowerPoint or hockey stick growth projections, but you do need a roadmap. A plan gives you structure and helps you focus on what's important instead of being distracted by unnecessary tasks.
Key Elements of a First-Month Business Plan:
- Define your services or product: Detail what problem you're solving or product you're offering.
- Identify your target audience: Know who your ideal customers are.
- Set your pricing strategy: Determine how you'll charge for your services or products.
- Establish short-term goals: Outline what you want to achieve in the next 30, 60, and 90 days.
- Determine essential tools and platforms: Identify the tools or platforms necessary for your business operations.
Keep it simple, but put it in writing. A plan helps you stay on track and make informed decisions.
4. Get Real About Legal and Tax Responsibilities
Ignoring legal and tax obligations can lead to trouble down the line.
Early Legal & Tax Must-Dos:
- Apply for an EIN: An Employer Identification Number (EIN) is necessary for your LLC and business bank accounts.
- Register your business: File your business with the appropriate state authorities promptly.
- Understand your taxes: Speak to a CPA or use an online service to ensure you understand your tax obligations.
5. Build Your Minimum Viable Brand
When building your brand, focus on clarity over complexity. What do you offer, who do you serve, and how can people pay you?
Essential Branding Elements for the First Month:
- A legal, unique business name: Conduct a name search in your state to ensure it's available for use, especially when forming an LLC.
- Clear service or product description: Describe what you actually do in simple, straightforward language.
- A website or landing page: Use simple, user-friendly platforms like Wix, Squarespace, or Carrd to create a basic website.
- Consistent email address and social media handles: Maintain consistency across all platforms to build a professional image.
6. Create Systems Before You're "Too Busy"
Setting up systems early saves time and stress later.
Smart Systems to Set Up Early:
- Invoicing and payments: Use tools like Wave, FreshBooks, or PayPal Business to manage invoicing and tracking payments.
- Contracts: Use basic templates for proposals, service agreements, and refund policies.
- Client onboarding: Create an email template or welcome form to make clients feel valued and informed from the get-go.
7. Tap into Support
Don't be afraid to ask for help. Early days should be filled with learning and connecting, not reinventing the wheel.
Support Sources Worth Tapping Into:
- Local Small Business Development Centers (SBDCs)
- Online entrepreneur communities (Facebook Groups, Reddit, Slack channels)
- Business coaches or mentors
- LLC formation services and tax professionals
Starting a business is never easy, but focusing on these critical areas can help ensure a strong foundation for future growth. The first 30 days are full of opportunities, but they're also filled with potential pitfalls. By prioritizing legal, financial, and branding considerations, and establishing systems early, you can lay a strong foundation for your business and set yourself up for success.
- Pursue entrepreneurship and personal-finance education: Explore online courses, books, and webinars to enhance your business acumen and personal-finance skills.
- Network with professionals: Attend local business events, meet-ups, and conferences to connect with other entrepreneurs, industry experts, and potential mentors.
- Develop a career plan: Identify your long-term career goals in both your business and personal-finance paths, and create strategies to achieve them. This could include expanding your business, obtaining certifications, or investing in real estate.
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