Your financial needs will vary significantly depending on the type of business you plan to launch. You will want to create a proposed budget, as well as financial projections, to ensure that you are financially prepared and to pitch to potential investors and lenders.

Create a Budget and Financial Projections

Before you launch your business, you’ll want to confirm that there will be sufficient revenue to be sustainable. You’ll also want to estimate how long it will take to generate a profit and how much the anticipated profits will be. For instance, a service-based consultancy business will likely have very little startup costs, but a product-based business, such as a catering business that you run from your home, may have more upfront costs.

Financial projections are estimations of how much money the business will earn and spend over two to three years. If you plan to obtain a loan or other financing, potential lenders and investors will likely want to see your financial projections so they have a clear understanding of when they will see a return on their investment in your business. You can create your own financial projections or find a template to use, such as those available in Microsoft Excel.

Develop a Plan To Keep Tabs on Finances

Getting your finances in order also includes considering how you will process and record your sales, expenses, income and revenues once the business is operational. There are several third-party providers who can assist with merchant account services, and we’ve ranked the best options for small businesses here.

Open a Business Bank Account

Opening a business bank account helps keep personal and business income and expenses separate. Using a business bank account can make it easier to track and record business income and expenses for accounting and tax purposes. You can open a business banking account at your local branch. You may also want to consider obtaining a business credit card as well. Get the step-by-step instructions on how to open a business bank account.