

Building your dream business while still employed full-time can seem impossible. Not only is it possible, but we can help! We wrote the “16 Steps to Starting a Business While Working Full Time” eBook to guide new entrepreneurs by completing tasks step by step.
If you need a reminder, here are the first four steps: select a business, create a business plan, establish goals and choose your marketing methods.
Many part-time entrepreneurs use their own savings or loans from friends and family to fund their startups. But are you managing your business finances to help you grow?
Projected Startup Costs
Sales Projections
This number will help you determine how much you expect to earn in a given time.
Gross Profit Margin
Your gross profit is revenue minus the direct costs of goods sold. Gross profit margin is gross profit divided by revenue. This will show you how profitable your business is and helps you monitor sales goals.
Breakeven Analysis
The breakeven point occurs when your gross profit (revenue minus cost of sales) equals your fixed operating expenses. To calculate the breakeven point, divide Total Operating Expenses by Gross Margin (as a percentage of sales).
BREAKEVEN SALES = TOTAL OPERATING EXPENSES / GROSS MARGIN PERCENT
You should reach the breakeven point after six to 18 months in business.
Cash Flow Statement
The cash flow statement details collections and payments. It’s similar to a checkbook register, showing your opening balance, expected deposits and withdrawals, and an ending balance.
Business Bank Account
Do you need a business bank account even if it’s a side business? Yes! Separating business and personal expenses helps avoid any tax problems. A business bank account also adds validity that you’re a real business and allows you to build your business credit rating.
Payment Processing
If you plan on selling in person or online:
If you plan on invoicing after you provide services:
Accounting Software
You may not think you need accounting software as a startup, but using one now will help you prepare for growth. Options include QuickBooks, Sage One, and Freshbooks.
Read the remaining steps to entrepreneurship in the “16 Steps to Starting a Business While Working Full Time” guide. Becoming an entrepreneur can be difficult, but you’re not alone. Connect with a free business mentor at SCORE. Good luck, and remember to take it one step at a time.
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Funded, in part, through a Cooperative Agreement with the U.S. Small Business Administration. All opinions, and/or recommendations expressed herein are those of the author(s) and do not necessarily reflect the views of the SBA.