How to Become Financially Independent: Starting Your Own Business

The “Why”

1. financial independence –
   There are numerous reasons why it’s beneficial to start your own business. The first thing that comes to our mind is financial freedom. This is such a defining and potent freedom, especially in today’s current climate. 
   
   
2. personal freedom –
   There is often greater opportunity for personal freedom. You now command your time, money, schedule, lifestyle. Within the confines of your industry, you decide how hard you need to work, and how you need to work, to effect a certain outcome. You are the captain of your own ship.
   
   
3. building your dream–
   Starting your own business gives you the opportunity to follow your passion for a living. It gives you the opportunity to take command of your own life, and quite possibly, craft it into the dream you envision (for yourself, family, community). There’s a quote by Tony Gaskins that always comes to mind: “If you don’t build your dream someone else will hire you to help build theirs.”
   
   
4. tax advantages –  
   There are many tax advantages to starting a small business. Read more here: Tax Benefits of Starting a Small Business
   
   

The “How”

1. secure finances –
   Once you have your vision and logistics worked out, you will need financing in order to get your business off the ground. There are multiple ways to secure funding for your start-up. Some options include: angel investors, investment groups, crowdfunding (think Kickstarter or Indeigogo), small business credit cards, and small business loans from the bank. Often times you may know a friend, family member, or someone in your community who has the funds and wants to help. Whatever option you go with, make sure your terms are clear and you feel comfortable moving forward. Read more here: Startup Financing: 5 Key Funding Options for Your Company
   
   
2. create an LLC – 
   An LLC is a limited liability corporation. This is one of the smartest ways to legally create your business, as it provides the business owner with the most protection. It provides safety and flexibility. Different rules apply to different states, so click to read more about creating an LLC here: How to Start an LLC: A Step-by-Step Guide
   
   
3. create a business bank account –
   Some things to consider when creating a business bank account:
   
   • Depending on your business’ needs will determine what bank and what type of account is best for you. Needs can include managing income, taxes, payroll, lines of credit. (For example, if you’re looking to simply store your money in the bank, you may look at who has the best interest rates on a savings account, but if you wish to open a line of credit or take out a loan, these fees and options will come into play as well.)
   • Consider what you value. Things such as: convenience (a local branch or ATM in the locations you need), in-person contact, favorable fees, reliable online access and digital banking.
   • Find a bank and people you feel comfortable with. Use your logic, but also your intuition. Not only will you be trusting the bank with your money, you also may need them for advice. A good relationship with your bank is important. Good relationships, in general, provide the best currency for business (as well as life).
   • If securing a business loan, don’t simply rely on the bank you are currently banking with (for your personal or business banking). It is smart to go to multiple different banks to get multiple offers and rates. You can secure a loan with the best offer with a different bank than the bank that has your business bank account. You can also take the more favorable, competing offers back to your bank and have them compete. Whatever route you decide to take, don’t accept the first loan offer you receive.
   • Read more here: How to Open a Business Bank Account in 6 Steps (+ Checklist)
     
     
4. register for taxes –
   As a legal operating business, you are required to file for taxes with the IRS. If you are opening up an LLC, you will need an EIN (Employer Identification Number), which is your federal tax ID number. You will need this number to open a bank account as well as some website commerce sites. Find out more here: Small Business Tax Information
   
   
5. build a brand + create a space –
   • A brand is created by your business name, logo, colors, and your messaging.
   • It is your ethos that branches out to everything you do with your company: your social media presence, your packaging, the way you and your employees interact with the public.
   • Creating a brand is one of the strongest things you can do for your business. A brand is your business’ personality. It is the face you show off to the world; a way for your audience and customers to recognize and relate to you. A brand allows people to get a feel for who you are and what you stand for. It sets you apart from competition, allowing your uniqueness to shine. It sends a clear message, aligns your mission with your voice, and more effectively attracts the audience you’re looking to serve. Read more here: Importance of Branding
   • We have recently felt the transformative effects of sitting down to align our vision and mission through creating a branding strategy and plan. We have found this not only has strengthened and added value to our company, but it changes to way we show up and move forward. (We personally work with Flourish Wildly and highly recommend her work.)
   • Depending on your business, depends on the “space” you need to operate. This may be a physical or digital space. No matter your business, an online presence is one of the strongest tools for a small business. This can be done through your website and social media. Read more about creating a website here: The 11 Best Small Website Builders
     
     
6. reinvest in your business –
   • Before reinvesting in your business, it’s best to always have enough cash reserves. This money will get you through harder times or unexpected expenses. Depending on your business model and revenue, will depend on how much cash you need.
   • In order to create sustainability for your business and yourself, it’s a good idea to reinvest what you can into your business. (For example, instead of spending the new income on a new wardrobe or extra extravagant vacation, invest it back in by hiring a branding expert, renting out a space in a high traffic area, taking a new workshop in your area of expertise, or on new technology for your business that decreases worktime and provides long-term greater income.)
   • Create goals for savings and long term growth. Reinvesting in the beginning years can provide long-term benefits.
   • Discipline in how you spend your money and time can be the strongest form of love for your self and business. It is ignoring current pleasures for bigger rewards to come.