Thinking of Starting Your Own Small Business? Invest In Yourself & Make It Happen.

You’ve got the idea, you’ve got the skills, you’ve got the motivation - it’s time to make it happen.

If you’re looking to take your side hustle to the next level or turn your passion project into a personal brand, this list of empowering and practical tips can help you to launch your small business with a strong financial foundation.

1. Be Financially Prepared.

There’s a big difference between selling your products to family and friends and opening a shop. And it's a big leap of faith to go full-time freelance with just one or two clients lined up. So take a step back, and make sure you have a solid plan to help your business get off to a good start financially.

One option is to start part-time alongside your regular work commitments. Yes, it can be difficult to manage, but it can give you time to grow and create a solid financial base before you go all in. Or maybe you’re confident in your business plan and ready to take the leap, but you need some additional start-up capital for stock or equipment. If that’s the case, talk to a trusted lending expert who can guide you through the process.

Whichever route you choose to go down, your future self will thank you for taking the time to prepare financially from day one.

2. Set Clear Boundaries.

When you start your business, set clear boundaries. Expectations of free services or misunderstandings over finances can put a huge strain on relationships, so treat business relationships with family and friends as professionally as you would with any other client. Your business is your livelihood, it should be respected as such.

It’s not just your relationships that need to have clear boundaries. There are also many practical matters where you will need to distinguish between your personal life and your business life. For example, setting up a business bank account from day one will not only help keep your personal spending separate from business expenses, it will also help when it comes to balancing the books and filing tax returns at the end of the year.

3. Look After Yourself.

Starting a business requires time, money and energy, so it definitely helps if you’re doing something that you love. But doing something you enjoy spending time on as a hobby is completely different to doing something all day, every day, from a business perspective. You’re going to have to love it a lot to maintain your joy when the admin is piling up and the pressure of making money is part of the process.

That’s why it’s important to look after yourself, by making conscious lifestyle decisions and investing in your health as part of the journey. It's all about balance, and prioritising your personal financial wellness is just as important as looking after the financial side of the business.

4. Have An Emergency Fund.

In the early days of your business you may not be able to pay yourself as generous a salary as you might like, so having some back-up funds makes it easier to meet your personal financial commitments. And from a business perspective, it’s important to have money available to pay for any unforeseen expenses, such as legal fees, IT support or insurance costs.

Of course there can also be exciting surprises that throw you off course financially, such as higher sales than you anticipated or a higher demand for your services. Whilst this would generally be considered a good problem to have, you may need extra cash to restock or scale up your business. Having an emergency fund can help you to manage the unexpected and allow you to seize positive opportunities when they arise.

5. Know Your Limits.

As a business owner you have to wear many hats, but that doesn’t mean that you have to know it all. Quite the opposite in fact. You need to be aware of your limitations and be willing to seek expert advice, especially in the early days when there’s a steep learning curve. Being willing to reach out and ask for help can be a lifesaver, whether you’re looking for ways to spread the cost of essential equipment or upfront business expenses, or start-up guidance and support from a mentor, or practical information on the formalities of running a company here in Guernsey.

Reaching out also has the potential to help you build business relationships and connect with like minded people. For a small community, Guernsey is punching above its weight when it comes to entrepreneurial spirit, so the more you reach out, the better chances you’ll have of connecting with people who can help you to thrive and help your brand to grow.

6. Believe In Yourself

Starting your own business, whether it’s a small side hustle or a potential global enterprise, is rarely an easy road to travel. But with hard work and dedication, the end result is worth it. You really can do anything you set your mind to, so invest in yourself and start planning your dream business today.

Get in touch with the friendly team at Cherry Godfrey to discuss how they can help turn your small business idea into a reality.