A Financial Checklist for Starting a Small Business

A Financial Checklist for Starting a Small Business

A Financial Checklist for Starting a Small Business

What to do before your first sale to build a business that lasts

Most small business advice focuses on what happens after you start making money—how to grow, scale, or optimize.

But the truth is, what you do before your first sale is just as important.

Because the foundations you set now will either:

  • Create stability and momentum

  • Or leave you playing catch-up (and paying for mistakes later)

If you're dreaming about starting a business—or you're in the early stages—this is your go-to guide for setting up the financial side of your business the right way from day one.

This guide covers:

  • The legal and financial basics to check off before you launch

  • The accounts and tools to set up now

  • The biggest money mistakes new business owners make

  • How to create a plan that actually supports your life

Step 1: Choose the Right Legal Structure

Your business structure affects everything from how you pay yourself to how you're taxed.

Start by choosing one of the following:

Sole Proprietorship

  • Easiest to start

  • No separate legal entity

  • You and the business are the same for tax purposes

LLC (Limited Liability Company)

  • Creates legal separation between you and the business

  • Offers more credibility and protection

  • Can still be taxed as a sole prop or S Corp

S Corporation

  • Tax election for LLCs or corporations

  • Can save money on self-employment taxes

  • Requires payroll, bookkeeping, and compliance

If you're unsure, start with an LLC—you can always elect S Corp status later.
And always consult a CPA to confirm what’s best for your situation.

Read: LLC, Sole Prop, or S Corp? Choose the Right Structure for Your Goals

Step 2: Set Up a Separate Business Bank Account

Mixing personal and business money is one of the fastest ways to create confusion, tax headaches, and overspending.

Open a dedicated business checking account with a bank that allows:

  • No or low minimums

  • Free transfers

  • Mobile access

Then, use the Core 4 Business Account System:

  1. Income Account

  2. Owner Pay Account

  3. Business Expenses Account

  4. Tax Account

Read: The 5 Essential Business Accounts Every Owner Needs

Step 3: Create a Startup Budget

Even before you make your first dollar, you’ll likely need to invest in:

  • Website or branding tools

  • Software or equipment

  • Marketing or product development

  • Legal and admin fees

List out what you'll need to spend in the next 3–6 months.
This is your startup cost projection.

Then map out how you’ll cover those expenses:

  • Personal savings?

  • Freelance or part-time income?

  • Grants or crowdfunding?

Read: How to Set Up a Budget Before You Make Your First Sale

Step 4: Forecast Your First Year of Income

This doesn’t have to be perfect—just realistic.

Ask yourself:

  • What will you sell, and at what price?

  • How many clients or products do you need to hit your goal?

  • How long will it take to ramp up?

Set a starter revenue goal for your first year. Then break it down by month or quarter.

Remember: consistent income matters more than big spikes.

Read: What to Track from Day One (Even If You're Not Making Money Yet)

Step 5: Set Your Personal Salary Goal

Even if you're not paying yourself yet, it’s critical to know how much you’ll eventually need to earn to make the business sustainable.

Inside The Small Business Planner, we help you calculate:

  • Your monthly personal financial needs

  • A revenue goal that supports that salary

  • A structure to make it all work

Planning for this now helps you avoid underpricing and under-earning later.

Read: How to Pay Yourself from a Small Business

Step 6: Choose Your Financial Tools

Start with simple, low-cost systems:

  • Banking: Bluevine, Novo, Relay, or a local credit union

  • Bookkeeping: Wave, QuickBooks, or a spreadsheet

  • Planner: The Small Business Planner (paper + digital system)

  • Invoicing/Payments: Stripe, Square, or PayPal

The goal isn’t perfection—it’s visibility. You can upgrade tools later, but the right habits start now.

Step 7: Avoid These Common Mistakes

  • Waiting to “feel official” before opening a business bank account

  • Setting prices without knowing your expenses or salary needs

  • Skipping tax planning

  • Thinking bookkeeping can wait

  • Letting imposter syndrome keep you from getting organized

You don’t need to be an expert.
You just need a framework—and the commitment to start smart.

You Deserve to Start with Confidence

You’re not “just figuring it out.” You’re building something real.
And the way you start financially will impact everything that comes next.

If you want a step-by-step system to guide you from day one, The Small Business Planner is for you.

It includes:

  • Financial templates and startup planning tools

  • Monthly systems to track, plan, and forecast

  • A roadmap to help you launch with clarity and confidence

Click here to explore The Planner → https://smallbusinessplanner.com/products/planner

Explore the Full “Start Smart” Series

This post is part of our Start a Business with Confidence content series:

 

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