The days of girl bossing too close to the sun are over. We’re girl bossing just enough, and keeping our finances in check as we start our businesses and take over the world.
To help with that mission, we sat down with Jill Ross, Senior VP & Chief Experience Officer at First Commerce Bank, for some tips to help you get started.
Jill Ross- First Commerce Bank
Have a business emergency fund
It might sound like a lot, but having that financial lifeline while starting your business could be the difference between thriving and surviving. “If you have a down period of time where you don’t have business, you either need a working capital line or a fund that you can draw upon,” says Ross.
She recommends three to six months of expenses saved up for a business, but also understands that when you’re starting, it can be difficult. So do your best.
Get a tax professional
Business taxes are complicated. But you probably realized that. Ross’ number one piece of advice for anyone who wants to start a business is to hire a tax professional.
“If you’re not a CPA, you don’t know all the things that come up,” she says. “They stay up-to-date on all the changes in the tax code. And you want to talk to that professional about how your business is formed and what you can deduct.”
Then, track everything, she says. “It’s about making sure you have a good system to keep track of all your expenses and income, everything that you put into your business.”
Have separate accounts
Don’t mix business and pleasure, and don’t mix business finances and personal finances. As time goes on, this rule gets more and more strict. “In the beginning, a lot of people use personal assets to borrow, like getting a home equity loan,” says Ross. “Then, once the business has been operating and cash flowing for 2 or 3 years, then you go over to a business loan.”
At the very least, you should start with separate bank accounts – one for personal and one for business. That way, says Ross, you’ll have separate records for your expenses, which especially comes in handy if you’re filing business taxes.
Use your bank
Speaking of bank accounts, one of the biggest mistakes entrepreneurs make is not using the resources their banks offer.
“A lot of women – we feel like we need to know everything,” says Ross. “Let yourself ask questions and learn not to be embarrassed. Just be vulnerable and know that everybody has their own expertise, and yours might not be finances and that’s ok. That’s why there are experts to help.”
Banks have everything from business plan guides and grant resources to business checking accounts and high yield savings accounts. “Banks can help you build credit, find grants through different economic associations and advocate for you,” Ross says. “And as you grow, they can help you with the different stages of accounts they have.”
