The nuts and bolts of starting a business — things you didn’t really think about.
This section is interesting because it talks about all the logistics of starting you own business that you know you gotta ask, but don’t really know how to ask or get started with.
First is setting up a bank account just for your business. Never really gave this much thought, but I will be visiting my bank in a week so I will be setting up an account just for my side hustle.
Second is to get a credit card just for the business expenses. Smart tip here is to make sure the credit card has airline miles
Third is to pay for everything up front. I personally hate signing up for recurring payments so this should be easy. It stings a little when you make that major up front purchase, but if you have the money, there’s no point in paying a high interest credit card.
Forth is to set aside 25% of your income for taxes. This seems like a no brainer, but I’ve heard stories of people starting out and then realizing they are expected to pay taxes on that money. Rest assured that I will be utilizing every tax break in the books to make sure this amount is as small as possible.
Fifth is to quickly invoice people for your service. Do as soon as you can. Don’t wait.
Sixth is to get everything in writing. Doesn’t have to be overly complex, but have some sort of written agreement for all work you’ll be doing.
Seventh is one that I want to research a little more but that’s setting up your company as either a sole proprietor, LLC, or non-profit. I think I’m going to go the LLC route. I know it’s more expensive, but I don’t want to be liable in case things go south.
Eight is to make sure you set up a simple accounting system. You want to track your money going in and your money going out. I think to start out, I’m going to use Excel since I’m well versed in that tool. Eventually, I’ll probably upgrade to QuickenBooks.
Ninth is to have a dedicated area for your side hustle. This shouldn’t be too hard as I have dedicated space in my garage and a dedicated office at home.
Lastly, make sure you pay yourself. Once profits start coming in, pay a small portion to yourself to your personal savings account.
That’s it for today. Looks like the only actions I have to take right now are setting up the LLC and setting up a bank account. Not sure the proper order, but I think I would need a business name before I can apply for a business account. Wish me luck and see you all tomorrow.