Financial Considerations of Every Entrepreneur

In this article we present some considerations that you have to take into account in the adventure of undertaking, just as every economic opportunity to start a business has its risks and rewards.

Before we decide to embark on the adventure of starting our own business, we must consider some important aspects:

• We will be responsible for providing us with the salary that allows us to meet our needs.
• We will have to commit to our project, so that we can periodically obtain a fixed amount.
• Since we are our own boss, we will not be subject to orders; however, we must be careful to ensure that all aspects of the business are perfectly taken care of.
• If we hire employees, we must be aware of the payment of their payroll or the payment that we have agreed with them and, preferably, have a capital reserve that allows us to meet these obligations, even if the business does not generate profits in the first place.
• We will not have the package of benefits provided by companies, therefore we will be the ones in charge of providing us with health insurance, IMSS enrollment or the benefits we want to enjoy.
• To be an entrepreneur we must be disciplined and have order in each of our activities.
• We will be directly responsible for complying with the business' tax obligations.

 

The business plan and its financing

It is necessary to carry out a plan that details all the aspects necessary for the operation of the business.
Here are the main general points to consider for a business:

• What will be the niche market you will focus on.
• Who are the main competitors.
• Determine the list of fixed expenses to be taken each month.
• The permits and formalities to be carried out before the relevant authorities.
• How many employees to hire and the basic benefits of law that we are obliged to grant them. For this purpose, we can consult the Federal Labour Act.
• Calculate the income we estimate to receive monthly.
• Choose how we will conduct business management, that is, whether we will record day-to-day operations in a computer program specially developed for the business or use another one that offers the market.
• Develop the identity and image of the company: logo, motto, philosophy, objectives, values and others.
• Develop a corporate electronic page, in order to have a presence on the network.
• Project financial statements. What capital is needed to initiate it? Do you count on him or do you have to apply for financing or wait to raise the capital?

The business plan is a lighthouse in the midst of darkness that guides us on the journey of our journey. It helps us to ensure that each of the decisions we make is justified and, therefore, that each action will lead to a benefit for the formation of our heritage.

However, ideally we should have capital to undertake our dream, but if not, there are options that financial institutions provide to solve the project. In addition, the business plan helps us to get investors who want to start the business together with us.

It is advisable to evaluate each of the available alternatives and choose the one that best suits our type of business.
 

Government supports

The government has available to all entrepreneurs financial support to start a business. An example of these supports are the business incubators promoted by INADEM in order to finance a percentage of the investment needed to start operations.

 Financial instruments

Don't forget that financial instruments are a great ally on this path that you are about to begin. Ideally, once you have your business plan armed, you'll approach financial institutions to advise you to help you drive your business toward the goal set.

One thing you need to do is separate your personal bank account from your business account and you can also request a credit card and a debit card for exclusive use. This will help you maintain better control of all expenses and keep your personal finances separate from those of your business. Similarly, financial institutions may have tools at your fingertips that have special benefits for business use.

Financial institutions can be an option to purchase a credit that supports you to start your business.

Remember

1. When starting a business we must be aware that there are risks we might face. That's why it's important to have an elaborate business plan that helps us reduce risks. Planning prevents us from suffering losses due to hasty decisions or minimal use of available resources.
2. Every business turn carries implicit risks that are particular. For example, a wood cutter and a bar have very different risks and require a very extensive pre-study so that we know if they have a chance to survive in the market in the long term. We recommend advising you with experts on the turn of your interest, so you can have more bases for decision making.
3. Being an entrepreneur is very stimulating because we ourselves are the creators of a new universe that grows with our creativity and our spirits. We are free to innovate and propose. Above all, a world of possibilities opens up for us, where the limit is our own capacity.