Setting Financial Goals for Your Home Business

Among the most important factors in starting your home business is setting financial goals that are realistic and set you towards the path to success.

| April 2014

  • Setting financial goals includes looking at the income you wish to bring in, and determining your financial outline down to the day.
    Photo by Fotolia/Andy Dean
  • Business guru Robert W. Bly offers expert advice in "Start Your Own Home Business After 50."
    Cover courtesy Quill Driver Books

Start Your Own Home Business After 50 (Quill Driver Books, 2013) is the perfect book to help you take care of your retirement income. Robert W. Bly offers advice and proven plans for starting a home business and achieving the income you’ve always wanted. Excerpted from “Launching Your New Business,” this selection shows the importance of setting financial goals that will lead you to a satisfying and sustainable income.

How to Take Care of Your Money

You’ve got a good idea of what you want to do, or maybe several ideas. Now, how do you plan to handle your finances? Do you have a business bank account set up to take in the money you receive as a freelancer? Your account should be one that takes in all payments made by checks and any possible bank-to-bank transfers.

To save yourself a lot of time and aggravation, you should call ahead to the banks you are considering using and ask to speak to the person who handles business accounts. Interview several banks to determine the one that offers the best services for the lowest fees. Start with the bank where your personal accounts are held, especially if you are looking for a business loan, since they already know you.

Often, the bank’s nominal monthly maintenance fees will be waived if you satisfy certain conditions, like maintaining a certain balance in the account or paying a certain minimum number of monthly expenses from the account. Even if you don’t satisfy those requirements, ask for the waiver of the fee.

Tell the business manager what type of entity you have formed, and he will tell you what documentation you need to bring with you to set up the account. Typically, you will need your driver’s license or other official photo identification, the tax identification number for the business, a copy of your articles of incorporation or operating agreement, Department of State filing receipt, and the stock or member’s certificate issued to you, indicating your ownership interest in the business. Open a business checking account and get a business debit or credit card. You can also set up a merchant account for credit card purchases, if that is applicable to your business. Now, you’re in business!

You can also create a PayPal business account online, which is an easy way to get paid efficiently and quickly through e-mail invoicing. PayPal allows your clients to pay with credit cards, even if you haven’t set up a merchant account. There is a small percentage charge for the PayPal service, but that fee may be deductible as a business expense at the end of the year. Just keep careful records of everything you do financially. Get every dollar back in tax deductions that you can.

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