Money Management for Moms and Dads Working from Home
Read More: original article posted in Work from Home Solutions under Work at Home Moms and Dads
Moms and Dads, did you know that money management is the most important things you need to be doing when organizing and managing your office and working from home?
Boring I know but you need to begin to think how you will manage your money for the future of your business.
Unfortunately, money management is the backbone to your success, and identifying where the money comes from, where you will put it and how you begin to manage it is key. Because along with planning your business you must begin to plan your retirement.
This will take some soul searching for some but definitely confide in your partner to decide where the money will come from and how you see it working for you.
We all hate thinking that managing these numbers has to be part of the equation because if you are like most of us, the numbers are really are the most boring part compared to the actual running of the business. But if you sit back and take a look at the whole picture first, and keep track of the money in the beginning you will find you have peace of mind that follows and leads you to better creativity and production.
To put it bluntly it keeps the reality of your business in focus and you will see what is happening and whether or not you need to make some adjustments. You may be surprised and actually enjoy seeing the results.
Let’s explore the options of where to find the money for start up, where to put the money and how to manage the money.
Business Start up Money
Business start up money can come in different ways and much of this is up to you on how you want to proceed with the funding. There are the upsides and downsides acquiring the start up money but to keep things simple I am going to identify just a couple of ways that seem to be more traditional for work at home moms and dads.
Personal Financing
Begin by looking at what you can personally fund. Such as your savings account, affiliate revenues, credit cards, or home equity loans.
Upside
* You will have total control over your business
* You will not be paying anyone back but yourself
* If you do use a portion of your savings you will be eliminating monthly payments later that just add to your expenses.
Downside
* You will be incurring personal debt
* Paying off a credit card could become very expensive due to interest rates rising
* Cash may be limited in generating growth for your business.
Getting a bank loan or better known as Debt Financing
This is sticking your neck out a little bit farther and with the way banks are lending you may not qualify and truly this is a very untraditional means of acquiring money for home based businesses. But if you need to at least try and just be aware that you need to be prepared with a business plan.
Upside:
* You will still have total control over your business
* You may build a reputation with you lender for future business opportunities.
Downside:
* Banks don’t like start ups. They truly lean towards businesses with some money and tracking history.
* You incur interest payments and keeping up with them is very important. If you fail on one payment it could jeopardize the loan.
* Banks love collateral and you must be willing to give them something of value, like maybe your home.
Opening a Bank Account
After you have decided how you are going to finance the business you need to open a bank account for the business, keeping it separate from your personal account.
* Place the account in your name. At this point there is no need for a business name or need for a fictitious name from your city or state. But it is wise to check with local laws to just make sure.
* Open the account with as little as $500.00 dollars and as much as $1000.00. It doesn’t need to be more and this should keep you running for awhile. At least until you start making commissions through your affiliate network marketing.
* Make sure that the account has a debit card, checks, and a credit card associated with it and also make sure that you are set up with online banking.
* Check out interest bearing accounts and have a savings account attached to it with automatic withdrawal to the savings. This will get you used to saving in the very beginning.
Expense Tracking
Expense tracking is crucial to running a professional home based business. Setting up your bookkeeping system can be done in several simple ways and there are several types of software that can help you. Stop and take a few minutes to identify what best suits you and your pocket book.
* You can purchase software to do this, such as Quicken, QuickBooks pro 2009, or MLM Tax Helper or just an excel file.
o Upside of these systems is that you will be fully automated and at tax time you will be able to print up a copy for your accountant quickly.
o You will be able to identify tax benefits
more quickly.
* You also buy a ledger and do the accounting by hand.
o Much more time consuming and easier to let go for longer periods of time eliminating the ability to adjust and act more quickly in your business.
o Less expensive and more affordable when starting up your home business.
Once you have established your bookkeeping system and have it up and running efficiently you will be able to move forward with that peace of mind. As Moms and Dads under the pressure of raising families and working outside the home, your new work at home business should become the least of your worries.
For more information on how continue to grow in your marketing look to Renegade Pro Blog
Written by Angela James
Angela brings to you 24 years of experience in business ownership and small business start ups. Angela helps new business owners set up a sound accounting system in their business that puts the business on track for success in the beginning. Doing this in your business will definitely bring you the peace of mind that as a parent you so deserve. For more marketing solutions go Internet Network Marketing Solutions
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Comments: 13 
About the Author: Angela James
Member Since: 07/28/2008
Company: Angela James
Industry: Training and Development
Primary Web Site: http://www.mlmmarketingsolution.com
Money Management Equals Success
Boy Angela I wish I would this information 20 years ago when starting my first business, I had to learn from A LOT of trail and error. Money management is such an important part of running a profitable business.
What ever you do don't be fooled into thinking someone else can manage your money better than you can. It might be hard at first but ultimately you and only should be making money desisions concerning your business,Thanks for a great article Angela.
And always remember a fool and his money are quickly departed.
A home business is a business!
Angela, great article. It is so important for people going into business to know what is required to succeed and what their options are to get started. Setting up a bank account and making a plan of how to handle money--and then implementing it is crucial. And it is so important to keep your books up to date in a regular and timely manner. A home business is still a business and needs to be treated as such!
Focus On What's Going Out
Too often, when starting a new business, one focuses on the wrong thing. This is especially true for online marketing.
Every where you turn it's all about the money you're going to make and not about where the money you now have is going.
The points you've laid out Angela, can definitely help anyone keep track of their pennies even if they are working from home.
Tips Galore
Wow, Angela, this is great! I've been in business for 18 years and I still struggle with putting enough focus on this area. I tend to let it go for months and then panic and try to play catch up. Thanks to this information, I'll be giving some of them a try to assist with managing the outgo as well as income.
Thank you for sharing.
Michelle
Tips I Needed
Angela, I'm not much of a money person. I know how to spend it very well, but I avoid talking about it. I needed tips like these that are not overwhelming and start out simple and focused. It is hard to believe that my father is a CPA. I appreciate the tips. I'll be in touch!
Money Tips
Angela: I think that this is a much needed article. We keep tract of all kinds of things for our business, traffic, PPC, sign-ups and sales - but we forget (or more likely ignore) this very important subject - where is our money going? Thanks for the great money tips!
Money Talk
Thanks for the helpful advice Angela, and the reminder to not take a "head in the sand" approach when it comes to managing the financial side of business. Becky, my dad is also a CPA and I don't particularly enjoy financial details (although I love creating new ways to monetize). Could there be a pattern here?
Thanks again for sharing Angela.
Money Management
Thank you all for your comments and I do hope that this article helps us all put business into perspective. I truly believe that many of the small businesses that are in trouble today is because of poor management of money. The days of the "fourth quarter" goldmine is over.
If we all monitor our finances closely in the beginning we will win.
A must do
As boring as it is money management is a must do. Many of the financial problems that people have today come from fiscal irresponsibility.
My dad was a financial planner (1 income with 6 kids) and because he was very wise in handling money he was able to retire at 55 years old and all of us had a college education.
Most would benefit from these money managementlessons.
Counting the Cost and Planning.
Very helpful pointers Angela.
This also creates a platform for alignment with your spouse, family or business partner if you have one. Nothing more stressful than not being on the "same page" where money is concerned.
Also, practical tips for the paperwork that supports your tax credits which is a big deal.
Thanks.
Manage Your Money or Fail
If we don't manage the money side of our business we are likely to go out of business, or in deep debt. Either way that not the result someone want when they start a home business.
Knowing how much you can afford to invest in your business, should take a part in selecting your home business. Some require a large start up cost, other don't. But you are going to either spend money or time; and in most cases both; to become successful.
Angela, anyone want to have a successful business should study your article, and follow your suggestions.
Tips...
Angela,
What a great article. You've given some great tips about financing. Just as many have said, doing the the bookkeeping is normally not the front end of the business, but should. I will definitely be taking your advice.
Thanks Angela For The Tips...
Donna Wells
Critical to a Succesful business.
Great article, Angela. People should take your advice and manage the money they are spending in their business.
Hey, Becky and Cindy. I am a CPA and still don't like keeping up with the money in my businesses.
But it is critical. Failing to properly manage the money in their business is probably the major reason for failure in the network marketing industry.
It's so easy to find things to spend money on - a new marketing system, a new training system, a new way of generating leads, etc. But you must keep track of your expenditures vs. the revenue you have coming into your business. If you don't, you have only yourself to blame.