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Setting up a business is no small order. This is especially true if you want your business to support your household, because you’re investing your time, money, and energy into it. Unfortunately, most businesses fall through within their first few years of operation.

How can you prevent this from happening to your business?

Make a Plan

Before you register your business with the local authorities, you first need to actually have an idea of what your business is and what it’s going to be called. As a sole trader, your business name can simply be your personal name, especially if you provide a service, or you can come up with something different.

But while the name does matter, the most important thing is that your business has a set plan. You need more than just a vague idea like “I can mow lawns for a living” as a plan. You need to work out how you’re going to earn money in the first place, what you need to invest in your business, and how you’re going to get customers.

From here, you can move on to putting your plan into action.

Getting Funding

While some businesses have small startup costs, you will often need to provide a measure of funding to get things going. If you have the cash on hand, you can fund your business yourself. This is risky, because you can lose the money if your business fails, but it means you have complete control and you don’t owe any money to anyone.

A more common option is to get a business loan. This is also where your plan will be useful, because a lender needs to know what you’re loaning money for and how you will pay it back. You can get a cash advance loan to inject money into your business right away.

You can also get people to invest in your business, which is where they pay for a share in your business. Part of your profit will go to them and, in some cases, they may have some control over how your company operates.

Managing Finances and Taxes

Once your business is operational and earning money, you can’t just rest on your laurels and assume that you’ve succeeded. Earlier, we mentioned registering your business with the local authorities. This is so that your business can pay tax, which is legally required. Not registering your business could lead to a hefty fine and the loss of your business.

Keep regular books to help you have an accurate account of your finances. This is helpful when making financial decisions with your business, but it’s also a necessary step when paying your taxes.

There are a few ways to make paying your taxes easier, like making tax digital for income tax. This allows you to keep your records all in one place and, when it comes time to file your tax return, you can do it quickly and easily.