Starting your own business has been something you have spent countless hours planning. You know what it is you want to do, have the necessary experience and are ready to give it a go. Running your own business can be a great advantage to a single mother, but it can also be very hard. Before you quit your day job, there are a few financial issues you need to think about.
Permits, Licenses and Taxes
Many people do not realize that almost every business needs a permit or license to have a business in their city or county. While this is not a big expense, it is there and if you do not have the proper permission to have a business, the fines and penalties can add up quickly. There can be a number of different taxes you have to pay if you are in business for yourself. If you are selling a product, remember to collect sales tax if applicable and more importantly to send any tax collected to the proper authority on time. You will also be subject to self-employment tax if you are not incorporated and paying yourself. If you have employees, there will be all kind of taxes, from withholding taxes to unemployment taxes.
Liability Insurance
Another expense it is easy to forget about is liability insurance. You may have insurance on your equipment and have been told about worker’s compensation insurance, but you also need to be covered should a client or customer get hurt on your property. If your business provides a service in which you will be handling property that belongs to a client or will be going to a client’s home, liability insurance will cover any damage you accidentally cause to the property.
Advertising
You probably already know you will have to do advertising to get business but do you realize just how much it costs? A simple ad in the phone book can cost hundreds of dollars. If you are going to do the majority of your marketing online, it is still going to cost you quite a bit of money. Joining different groups or having subscriptions for sites to advertise on all add up.
Utilities
Even if you are going to be operating your business out of your home until there is a definite need for an office, you are still going to want a separate phone for work purposes. Having the kids answer the home phone when it is a business call is not very professional. If you have a separate location for work, whether just an office or a type of store, you are going to need electric and water and sewer too. These expenses can get very pricey depending on the business.
Website Expenses
You may be able to create your own website, web design could very well be your business. Very few people are going to start off with a server to host the site. Web hosting does not have to be a big expense, but it will be there, and every month. Do not forget to make sure you pay for the domain too.
Starting your own business will be an adventure. Whether it is a fun ride or one you can’t wait to get off of is entirely up to you. Do not let the little things get you down and make sure you plan ahead financially. It might be a good idea to keep your day job for a while until you are sure your business can afford to pay you what you need to support your family.
