Now is the perfect time to start a business in the health and fitness industry. More than ever before people are taking an interest in healthy lifestyle habits to recover from or prevent the risk of disease and improve their quality of life. Whether you’re a personal trainer, yoga instructor, physical therapist, or weight loss coach, outside of providing quality products and services, your ability to properly manage your finances will greatly determine your business’s success.
One of the first steps toward managing your finances properly is having a banking account. Bank accounts are ideal for keeping track of company finances, making transactions, and obtaining loans to further fund your establishment. As business banking is a bit different than personal, here are some tips to keep in mind.
Keep Personal Separate From Business
The biggest mistake you can make as a small business owner is keeping your business and personal funds in the same account. While you may be the only employee within your business, you still want to have separate accounts for what your company is spending. This makes things like calculating revenue and expenses, budgeting, making projections, filing taxes, establishing company credit, and applying for loans a lot easier.
Find the Right Bank for You
Don’t assume that the institution you presently use for personal banking is the best option for your business accounts. You should review various banks to determine who will provide you with the best accounts and related services. You want a bank that caters to your demographic (small business owners), one that offers reasonable rates on accounts, decent interest, and other perks that help small business owners to run their operation most efficiently.
In many cases, it is best for entrepreneurs to look at a local bank or credit union business account. They have just as many resources as larger banks but with fewer customers, they have the ability to cater directly to you and your needs. They also tend to be more supportive of small business owners offering flexible financing options, fewer fees, lighter eligibility requirements, and other services.
Be Mindful When Reviewing Accounts
The idea when choosing a business bank account is to find an establishment that will help you effectively manage and grow your money – not give you the runaround and slowly bleed you dry. After you have chosen the ideal bank to open an account, review the various business accounts available to see which one is best for you.
You want to try an avoid high startup deposits, low or no monthly maintenance fees, minimal transaction fees, and high-interest rates on savings accounts. You also want an account that comes with convenient features like online banking, mobile alerts, online bill pay, free financial advisors, and more.
Be a Responsible Borrower
It is not uncommon for small business owners to look to their financial institutions for capital to support the operation of their company. Many banks and credit unions offer small business loans and lines of credit which can be used to cover the cost of anything from supplies and equipment to marketing and accounting. This is ultimately a convenient way to allocate the funds you need until you’re able to generate enough on your own. Be that as it may, you can only take advantage of such opportunities if you understand borrowing.
When you borrow money as an entrepreneur you are essentially establishing a reputation for your brand. Your bank is looking at your trustworthiness to determine if and how much they should help you with. In order to keep getting the funds you need for your business, however, you must be a responsible borrower.
To borrow responsibly you must only apply for loans as you need them, review all information within the document to ensure you understand it, and comply with the terms and repay the loan in a timely fashion. This helps you to build a positive track record and establish a positive credit history for your business. Which, in turn, helps you to secure other financing options in the future.
It’s great that you’ve decided to make a living helping others to improve their health, fitness, and enrich their lives. In order to continue doing good things for others, however, you have to know how to effectively manage your finances. Use the above-mentioned banking tips to select the right bank, choose the appropriate account, and borrow responsibly to build a positive reputation that sets you up for success today and in the future.
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