Smart Financial Choices That Put Small Business Ideas in Motion
The National Foundation for Credit Counseling® shares advice for entrepreneurs who have big dreams and tight budgets.
(Washington, DC) A strong economy and rising levels of consumer confidence may be leading many to seriously consider the possibility of becoming small business owners. The most recent online poll conducted by the National Foundation for Credit Counseling® (NFCC®) found that the majority of respondents have dreams of going into business for themselves. Among the responses, 40 percent indicated that they have aspirations to open their own business while an additional 18 percent would consider the possibility if they had access to the right resources.
“When the economy is strong, the possibilities for success in the open marketplace are quite a temptation for people with an entrepreneurial spirit,” said NFCC spokesperson Bruce McClary. “Putting those ideas into action means making some smart financial choices.”
To help guide some of the early financial decisions that are involved in starting a new business, the NFCC offers the following tips to consider:
Get the bucks in a row – It is very important to keep personal finances on solid ground in order to give the financial matters of the business all the attention they deserve. Creating and maintaining a budget for household expenses is the first step. Financial challenges like past-due credit cards, auto loans or mortgages should be dealt with right away by communicating with the lenders and with a nonprofit financial coach.
Create a business plan – Creating a business plan helps entrepreneurs achieve important goals. The most comprehensive business plan serves as a roadmap for launching a successful business venture that leads to the achievement of financial goals. It can also be a useful tool for attracting support from banks and investors.
Build a financial firewall – Keeping business and personal finances separate will go a long way toward ensuring success for each area. Personal sources of funding are sometimes used to cover startup costs in the early stages, but it makes better sense to maintain business checking and business credit card accounts as the enterprise grows. This action also creates a paper trail for business income and expenses that can be helpful at tax time.
Seeking advice from an NFCC small business owner coach can help address financial challenges associated with small business ownership. For help, visit nfcc.org/smallbusiness or call toll-free 844-359-3792.
The actual poll question and results are as follows:
“Have you ever considered starting your own business?”
Yes, I currently own my own business. 18%
Yes, I have aspirations to do so. 40%
No, but if I had the right resources I may consider it. 18%
No, I have no desire to have my own business. 24%
Note: The NFCC’s January Financial Literacy Opinion Index was conducted via the homepage of the NFCC website (www.NFCC.org) from January 1-31, 2018, and was answered by 702 individuals.
About the NFCC
Founded in 1951, the National Foundation for Credit Counseling® (NFCC®) is the nation’s first and largest nonprofit dedicated to improving people’s financial well-being. With a national network of member offices serving 50 states and Puerto Rico, our NFCC® Certified Credit Counselors are financial advocates, empowering millions of consumers to take charge of their finances through one-on-one financial reviews that address credit card debt, student loans, housing decisions and overall money management. Make one of the best financial decisions of your life. For expert guidance and advice, call (800) 388-2227 or visit www.nfcc.org today.