Thanks to our partner Krista at Evolve Capital for providing this content.
If it’s not enough meeting the demands of staying home, educating your children, cleaning the house, grocery shopping, and preparing three squares a day, there is a new phenomenon trending with today’s stay at home mom. The Momprenuer.
You may already be familiar with this term and you may already have your hustle on. The question becomes have you covered all your bases? Below is a list of six things you need to consider checking off before you go any further.
It all starts with this. Writing a business plan may seem daunting but doing so allows you to see where you are headed. You can determine what your expected expenses are along with your plan for growing your business. Not to mention, a business plan will be the first thing you need should you ever require a loan. Click here for information on the essential parts of a business plan or click here for a step by step walkthrough.
Running a side hustle is no joke. Setting up a legal entity to run your business may be the furthest thing from your mind, but it shouldn’t be. Setting up a legal entity, like an LLC or an S Corp, provides your business with legal legitimacy and will help protect you and your family on the off chance you have an unforeseen liability arise from your business. Go here to check if your company name is available and to set up your entity. If you need help figuring out the type of entity you should set up consider consulting with an accountant or attorney.
Once your legal entity is set up, you need to take the next steps to help protect your personal assets. This means the income and expenses from your business need to be kept separate from your personal money and need to be deposited to a bank account in your company name. This doesn’t mean you can’t have access to it, but if you muddy the waters by mixing personal and business funds you risk losing the protection of your legal entity.
Speaking of bank accounts, it should go without saying if you are making income that you need to claim this income on your taxes. Rest assured, if someone is paying you they are deducting this on their taxes. The unpleasant side of this is you could be assessed penalties and interest on that unclaimed income.
Keep Good Records
That coffee you had with another Mompreneur about collaborating on your next piece, yeah that’s business. The miles you drove to see a client, that’s business too. Keep your receipts and make a note of your other expenses. Come tax time these things matter.
Watch The Numbers
You gotta spend money to make money but those aforementioned coffees add up. Too many of those and there won’t be much bacon to take home for mama.
I know this list is full of terms no one likes. The fun part of being a Mompreneur is certainly not the minutia of running a business. But as they say, the devil is in the details. Don’t be intimidated, you can do this, you run a household, you are the master of your domain, and mama, you can certainly master this checklist.
Evolve Capital is the perfect place for Mompreneurs to get help organizing their finances! Evolve was born from the knowledge that you need advice. Good advice. Tailored to you. Not one size fits all products or minimums you can’t reach. Just because you are young doesn’t mean you should be ignored. Reach out to Krista at evolvecap.com.