This week, I’m focusing my attention on financials. I’m going to create a personal budget and what I estimate it will take to run this company for the first 3 years. Obviously, I don’t have enough information to be too accurate with this. However, it is good to have a starting point.
Week 1 – Personal
Last week, I focused on the personal, emotional, and mental preparation that starting a business requires. My Homework was as follows, and I completed all of it:
- Answer why I want to start this business.
- List my 1, 2, 3, 5, 10, and 20 year personal goals.
- Make a list of my support systems I have in place.
- Send a personalized letter to those in my support system.
- Write a list of my personal values.
- Create my definition of success based on my goals and previous answers.
Click any of the links for anything you’ve missed or want a refresher on.
Week 2 – Financials
This week, I have less emotional homework. That’s good because some of those assignments I gave myself require some emotional digging. The letters to my support structure were especially meaningful to me.
I promised financial disclosures and transparency with this company, and I still intend to keep that promise. However, I’ve decided it is best if I keep my wife and my personal incomes private. I’ve decided they feel like private things to me. I will say that combined, our incomes are under $100,000 but greater than $50,000.
So far, things are moving right along, so I don’t need to modify the homework I gave myself in the original timeline.
- List my personal expenses.
- List my sources of personal income.
- Make and month-by-month individual budget for the next 3 years.
- Write down the estimated costs of running this business for 3 years.
- Using my personal budget as a guide, make a budget for the business for 3 years.
I’ll be completing these throughout the week, so check back often!
Richard is the managing attorney for Law Plus Plus, a local small business law firm. As managing attorney, he helps small businesses and nonprofits startup, creating the contracts, and navigate the legal needs of businesses. Some of his practice areas include: corporate, contract, mergers & acquisitions, corporate litigation, and estate planning.