5 Financial Tips To Start A Business Or Work At Home
Starting a business or work at home is easy? Let’s find out! Did you know that more than in Brazil there are more than 6.4 million establishments. Of this total, 99% are micro and small enterprises (SMEs). MSEs account for 52% of private sector signed jobs (16.1 million). Although the number of establishments is enormous, a model of work that has gained volume here in the country is the home-office (both start-up companies and outsourced work).
Working at home has been a way of having flexible hours, making money, staying close to the family and maintaining some quality of life that works out does not allow in most cases. So if you are considering or are in the process of starting a home based business, have no doubt that it is a way to make money and create interesting and very important income.
Tips for starting a business
And, as with any venture, it is crucial to take the right and realistic steps to prepare for the growth and success of the business. Part of ensuring that you follow the necessary steps when starting a home based business, we’ve listed a few items that have helped you set the foundation needed to complete a successful small business. Below are five important financial tips to follow when starting a business as an established home based business.
1. Choose your structure or company format
One of the easiest structures to start and cost as little as possible to keep a company starting as an individual company. There are five types of company in Brazil. If you really want to start a business, you must know each one so that you can choose what else is close to your reality and the type of company you want to open.
See the most used types of company in Brazil that you can choose:
- Limited Partnership (LTDA)
- Individual Businessman (EI)
- Individual Limited Liability Company (EIRELI)
- Company (S / A)
- Non-profit (NGO)
Classification according to the tax framework:
- Microentrepreneur Individual (MEI)
- Microenterprise (ME)
- Small Business Company (EPP)
If you wish to limit your liability, you may want to consider another entity structure, such as a Limited Liability Company (LTDA). Be sure to consult your lawyer, accountant or business advisor about what right company structure for your business.
2. Open business and commercial licenses required
To have a better business opportunity working from home , you will need to have a business license (CNPJ) to allow you to carry out legal transactions and transactions. Be sure to hire an accountant or accountant to check the requirements and fees according to your future activities, location and rules that the company will be submitted according to your state or county.
3. Maintain a space for the office, production or services
No matter how large or small your workspace is, make a space for your business (small business) only. Since you will be running a home based business, it is necessary to establish a workspace to use in your home solely and exclusively for business purposes.
4. Open a business bank account
Having a bank account to negotiate is a key financial tool to manage your business finances. From the opening of the company, you start to receive or spend money as a company.
The account will allow you to maintain accurate records, expense and revenue reports, deposits and transfers to third parties. Separate your business account for business from your personal account. To open a bank account for your company, look for one of the banks closest to your home or your preference with your personal and start-up documents.
5. Get a business credit card (business card)
A business credit card or business card is a mandatory financial tool to keep your personal expenses separate from your business expenses. A credit card for your business not only makes it easier to track expenses, but it allows your company to start establishing its own credit score and payment history.
Starting a home based business can be extremely challenging to say the least. There is a lot to think about, organize, plan and execute so that everything works and goes as planned. So be a planner.
The good news is that there are many free resources to start a business, from trainings and supports readily available to you both online and in-person at trade associations and Sebrae and organizations willing to help small businesses and micro-businesses.