Starting a small business is hard enough, but even after you have your business running for a few months, you still have to keep your business alive. This all comes down to maintaining your business and personal finances with budgeting, cash flow, and management. Keeping up with these may not always be easy when you have a lot of other things going on or when your finances are strained. Consider asking for advice from a Tennessee Bankruptcy Attorney if you find your business falling into bankruptcy.
First Financial Steps for Your Tennessee Small Business
In the early days of your small business, managing your startup costs and expenses is vital for preparing yourself financially. Tennessee startup business costs include things like business supplies, advertising your business, and funding for the product you are selling. If you are not alone in your business, you may need to consider the costs of employee wages and insurance. Legal and permit fees may also arise depending on the nature of your business.
By estimating and adding up all your startup costs, you will be ahead of the game and will have a stronger idea of exactly how much money you need to save up or borrow through a Tennessee small business loan. The next most important step is to estimate and add up your business expenses, that is, the money you will need to keep your business going. This means things like:
- Advertising monthly fees
- Monthly rent for your business space
- Legal fees
- Product manufacturing and shipping fees
These ongoing fees will differ depending on what your business is, what you need to manufacture your products, and where your business will operate from. Some people do not even need to pay monthly rent for office space because they base their entire business online. In either case, you will want to also estimate the sales you predict to make each month and subtract your ongoing expenses from this. What this does is give you an idea of your financial limitations.
How to Manage Your Tennessee Small Business
Continuing to manage your small business requires Tennessee small business budgeting and cash flow. Budgeting means you are keeping track of the money you spend and the money you save each month along with what money you expect to make within the year if things go as planned. By subtracting your projected expenses from your predicted earnings, you will have a better idea of what expenses you could cut to save money.
Cash flow is the most important thing to keep your business running and can be increased with:
- Promoting your product
- Selling more products
- Offering discounts and deals
- Reaching out personally to customers with exclusive offers
- Looking into cheaper sources to make your product with
Bankruptcy Lawyer in Chattanooga, TN
Do not hesitate to seek guidance from our legal team of lawyers in Chattanooga, Tennessee and North Georgia if your company is close to bankruptcy. Call Tom Bible Law at (423) 424-3116 to speak with a Bankruptcy Lawyer in Tennessee for a free consultation today. Our team of Tennessee bankruptcy attorneys is located in Chattanooga, Kingsport, and Tullahoma.