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  • mike68244

So you want to start a business..

Updated: Jan 1, 2020

You found something you are good at. You have a hobby that you enjoy doing. You have a skill that people need. Whatever your motivation, you are ready to monetize it.

Get a credit card.

Starting a business costs money. More than you'll anticipate. You'll want to micromanage your finances from the very beginning. Doing as much as you can on your own will certainly help, but there are a few other tricks I learned that will help maximize your savings.

Some people may put this off until after they register their business and getting their EIN (Employer Identification Number) thinking it might be better to keep purchases together under the business name. You can get another credit card under the business name later. But registering your business, obtaining licenses all cost money, and we can start saving before that. It will take a little more organization on your part, and you'll want to save every receipt, but a little time and effort will be worth it in the long run. You just need a....

Credit card that offers cash back.

It may not seem like a lot, but there are cards out there that offer between 1-2.5% cash back. That will add up over the course of your business. If you are vigilant about payments, this will also increase your credit score. Which later on will allow you to obtain more credit, that you will use to expand your business when the time comes. It will come, I believe in you!

I let the cash back accumulate until it can cover at least 3 months of minimum payments, just in case we ever get into a bind. It's nice to have back up money. We already use Capital One for our personal banking, so their Visa Quicksilver 1.5% card worked for us. I usually log into their app at least once a day to check for fraudulent activity, so it's nice to have the "business" card right there in my face with my personal accounts. This also helps me remember when the payment is due, and I can keep an eye on the debt to make sure it's not getting out of hand. Stay on your minimum payments!

Stay tuned for "So you want to start a business.. #2"

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