Having determined how much money a business needy. You need to learn how you can raise it. Funds raised also have to be managed.
If you want to succeed in starting a business. You should also be knowledgeable about the following three key areas. Finance. Taxes. And accounting.
① Knowledge of financing: including subsidies and subsidies
You need to know how to collect money right from the start if you run a business that requires an initial investment. Of course. It’s best if you can cover the entire amount you need to start a business. That’s not always possible. You can therefore borrow money from a bank or have companies or individuals invest it. In addition. Certain conditions must be met in order for the government to provide a “subsidy”
You may also win sponsorship if your business has a good idea and a future.
You can increase the growth of your business by learning how to raise funds in this way. If the money you borrowed from the bank can be used to hire employees early. Or if you can purchase many of the things your business needs to start. You can increase profits.
My customers. Too. Were actively hired with the money borrowed from the bank. Even though they had been running alone for so long due to financial difficulties. Profits are increasing at some companies.
There is also a company of an early-twenties business owner that gave a 10 million yen investment to a major company after developing a new application service.
This is a common occurrence. I believe it would be a waste for someone who has a business idea but does not have the funds to implement it.
② Knowledge of taxes
As a tax accountant. I was consulted about money and asked many questions such as “why are you paying taxes” “When and where and how much tax should be paid” And “what is the tax paid for?” There are many situations where I don’t think people understand it properly.
I hear from customers who come to me that they are afraid of taxes and tax audits.
When you start a business. You have to pay various taxes. There are various types of taxes, from the most familiar consumption tax to income tax. Corporate tax. Inhabitant tax. Etc. The sole proprietorship and corporation (such as a joint-stock company) mentioned earlier may pay different amounts of tax. Even if they are just as profitable.
Knowing the minimum requirements can help you determine whether you have a high income or a low income. Depending on your familiarity with taxes.
A tax saving awareness often leads to unnecessary purchases when people buy unnecessary items. If you are a sole proprietor or corporation. Your tax rate is based on your profit. It would therefore make sense to shop just before the settlement of accounts and increase expenses in order to lower profits and avoid taxes. It is possible to make unnecessary purchases and put pressure on your profits. But you will overwhelm yourself.
When you gain knowledge of taxes, you are not merely paying taxes. But also gaining control over your money.
③ Accounting knowledge: money management method
Maintain an account book for your household?
Accounting for household expenses and income can be done by using a household account book. An organization’s finances can also be managed by determining how much income (income) and expenditure the organization has currently.
A business or company’s economic activities are recorded. Measured. And communicated using accounting. With accounting. You will be able to discuss how money (and value) are recorded. How properties are managed. And how performance is assessed.
Third parties need to know about money management. Property status. And achievements in order to lend money. If you are lending someone money. You do not want to lend it to someone who cannot manage it.
Additionally. If you are unable to communicate your property status and business performance effectively. Your lender will be concerned. Conversely. You can build trust if you portray your success on your property as well as your financial status.
I have customers who run beauty salon stores. For example. Who let their tax accountant handle their accounting and taxes. But after I studied accounting for just a few hours. I made a one-year profit forecast.
It is now possible for that person to determine their monthly sales and expenses by splitting their bank account into two sections. For sales deposits. And “for expense payments”. The bank loan representative now can explain to me in his own words how the profit plan is calculated based on specific figures like the average daily visitors and the average sales per person.
With the backing of numbers. The loan was more persuasive and was successfully executed. Knowledge of accounting is helpful when starting a business. Borrowing money for expansion. And managing money.
To start a business: it is crucial to have the following knowledge.
Having discussed so much so far. I think that starting a business takes a lot of preparation. Despite starting a business. There are still several things to learn and acquire knowledge about. It makes a huge difference whether you are knowledgeable about money or not. Especially when it comes to savings. Business expansion will no longer proceed at the same pace as it once did.
As a tax accountant. I will discuss the knowledge needed for entrepreneurs and money management.
There is a way to start a business without money if you are confident and have the right knowledge. It’s a waste if you are afraid of money and try to give up. It’s okay if you remember.
A human’s fear of the unknown is common knowledge. Entrepreneurship is not scary once you know it.
As a result. Please look forward to next week’s explanation of “financing” out of the three knowledge I introduced.
