If you’ve been dreaming of starting your own business, there’s no better time than now to get your finances in order and start preparing for a summer launch. Depending on where you’re at in the process, starting your business this summer may seem a long way off or it may seem to be much sooner than you expected. However, if you save and plan correctly, it could be the perfect timing.
Settled on summer 2025 being the start date for your new business? Here’s why you should start saving now and tips on determining the amount you’ll need and how to get your savings to the goal.
Why Start Saving Now?
Launching a business isn’t a quick process and often requires significant upfront investment. While the exact amount varies depending on your industry and business model, having a clear financial cushion is essential for a smooth launch. The longer you wait to save, the more difficult it will be to pull everything together when summer arrives.
Starting your savings plan early gives you the luxury of time, enabling you to adjust your strategy if things don’t go as planned. You also avoid the temptation to rush the process and take on unnecessary debt or make decisions that could hinder your success. If you start saving now, you’ll have time to budget and build your credit and you may be able to identify discount opportunities. Saving early will also help you stay as stress-free as possible during the process.
Key Costs to Factor Into Your Business Budget
Before you begin saving, it’s important to understand what you’ll need to spend on in order to get your business off the ground. Here are some of the major costs that new business owners often overlook:
1. Legal and Administrative Fees
Setting up your business entity requires filing fees, legal services, and possibly licensing fees. In some cases, you may also need insurance to protect against liability or loss.
2. Product Development or Inventory
Whether you’re creating a product from scratch or curating inventory, sourcing materials and manufacturing products can be one of the biggest initial costs for your business. Be sure to budget for prototypes, design, production, shipping, and storage.
3. Website Development and Hosting
Every modern business needs a professional, , mobile-first, user-friendly website. Whether you hire a web designer or build it yourself, you’ll need to account for domain registration, website design, and hosting fees. Also, consider whether you need to budget for e-commerce functionality or additional plugins.
4. Marketing and Advertising
To get the word out about your new business, you’ll need an effective marketing strategy. Social media marketing and ads, search engine optimization (SEO), influencer partnerships, and other forms of paid marketing can help you quickly gain visibility. Don’t forget to also set aside funds for branding, graphic design, and promotional materials.
5. Operational Costs
Depending on the nature of your business, you’ll need to cover expenses such as office space, equipment, software tools, or inventory management systems. If you’re opening a physical location, you’ll also need to budget for utilities, rent, and supplies.
6. Employee or Contractor Costs
If your business requires additional help, you’ll need to plan for payroll, hiring, and any benefits you might offer. Even if you’re working with freelancers or contractors initially, their fees can add up quickly.
Practical Steps to Start Saving
Now that you know what your startup costs might look like, here are some actionable steps to start saving for your business launch:
1. Set an Attainable Goal
Start by calculating how much you need to save. Break your total costs into categories (legal fees, marketing, inventory, etc.), and set a savings target for each. Aim for a contingency fund of 10–20% of your total goal to account for unexpected expenses.
2. Open a Separate Savings Account
Keep your business savings separate from your personal finances. This not only makes tracking easier but also ensures that you won’t be tempted to dip into your business fund for non-business-related expenses. Consider a high-yield savings account to earn some interest while you save.
3. Create a Budget
Review your current personal expenses and identify areas where you can cut back. Focus on areas where you can reduce discretionary spending or eliminate non-essential subscriptions, then redirect these savings into your business fund.
4. Automate Savings
One of the easiest ways to stay on track is by automating your savings. Set up a monthly transfer from your checking account to your business savings account. Even small, regular contributions will add up over time.
5. Explore Funding Options
While saving on your own is ideal, there are other options to explore, such as crowdfunding, small business grants, or loans. However, these should be considered secondary to your own savings plan, as they often come with conditions, deadlines, or interest rates.
6. Monitor and Adjust
Review your savings progress regularly and make adjustments as necessary. If you’re falling behind, consider increasing your savings rate, cutting further back on personal spending, or finding additional sources of income.
Start Today for a Summer Launch
The sooner you start saving, the more ready you’ll be to launch your new endeavor this summer! Need some help with your business financing? Reach out to the helpful pros at Hayes & Associates. They’d love to assist you!
