One of the first steps in planning a business is to examine your personal financial situation. "What do my personal finances have to do with my business?" you ask. Possibly everything.
Every prospective business owner should order a free copy of his or her personal credit report. You don't want any surprises when you go a financial institution for business funding. By reviewing your credit report before you apply for funding, you have the opportunity to repair any negative or incorrect information. If you have current credit issues, we can connect you with the Western Dairyland Financial Literacy program for free credit counseling.
Next, we can help you prepare a household budget. In preparing a household budget, a prospective business owner begins the process of identifying a start-up budget. Also, businesses have many of the same expenses as a household. Most importantly, though, preparing a household budget will help you determine the minimum amount your business has to pay you in order to be able to maintain your current lifestyle.
Download Helpful Spreadsheets
To use the spreadsheets below, you need to have Microsoft Excel, OpenOffice, LibreOffice or another compatible program installed on your computer.
Download Household Budget Form
Finally, create your personal financial statement. If you need financing for your business, you will need to fill out a personal financial statement to submit to the lender as part of the application process. By completing it beforehand, you will be ahead of the game.
Download Personal Financial Statement