THE Best in Wealth Business Startup Checklist, Ep #151

Do you enjoy your job? Are you working every day in a field that you’re passionate about? Or are you like me and realized that doing something you’re passionate about means starting your own business? In this episode of Best in Wealth, I share a business startup checklist. I’ll cover many of the questions you need to consider before you start a business. If you’re ready to take the next step, give this one a listen![bctt tweet="In this episode of Best in Wealth, I share my business startup checklist. It’s packed with important questions to consider before starting a business. Check it out! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]Outline of This Episode[2:04] How much do you enjoy your job?[4:45] Issues to consider when starting a business[6:27] Determine your personal cashflow issues[13:30] Business cashflow issues to consider[16:39] Legal and business formation issues[21:50] Tax planning considerations[22:26] What other issues might crop up?[24:09] Get the full checklist in the resources below!What does your personal cashflow look like?You NEED to ask yourself some questions about how starting a business could impact your personal cashflow:How is your personal cashflow going to change? Will you need a side hustle or a spouse's income?Will you need to use personal assets to start this business? Emergency fund? Savings? Do you have other income sources available while building your business? You don’t want to pull money that was earmarked for retirement.Will your risk tolerance need to change in other areas? Your risk tolerance will likely need to grow with your business. Do you need a contingency plan? Most businesses stall, go belly up, or don’t make the money you project so it’s important to have backup plans in place. Do you have an emergency fund? You need to keep some liquidity for emergency expenses.The bottom line is that you can't sacrifice your family for your passion. The best way to build a business is by building a large runway of cash. I worked my day job FOUR extra years while starting Fortress Planning. It was important to me to have everything in order before I quit my day job.During that time I took the necessary classes and got needed certifications. If I had quit my job before taking these steps, I’d be eating up my cash reserves while not building the business. My suggestion is that you make sure you're doing everything you can before you quit your day job OR plan to have a side hustle to help with income.Lastly, if you’re married, make sure your spouse is bought into the vision. It’s a stressful endeavor and the support of your spouse is instrumental. If it wasn’t for her belief in my passion I may never have started this business. If she wasn’t for it, it would’ve been a tough road.Business Cashflow ConsiderationsThere are three main business issues to consider before launching your business:Do you need to research the amount necessary to launch or run the business? You need to put together a capital sheet to know how much you need to start the business.Will you need cash or financing to cover the costs until you become profitable? Many people take out a loan to start a business instead of saving the money needed. Starting a business in the red can be stressful and painful. If you don’t have a long enough cash runway, you can go out of business before you truly have a chance to build it.Do you expect income to fluctuate? If you’re getting a consistent paycheck now, it’s likely pretty different with a business. Can you get a line of credit to...