One aspect of contracting that many freelancers overlook is the banking element of their business. The second hurdle is acknowledging that their career as a start-up is just that – a business.
The likelihood is, with our fantastic national curriculum, that if you’ve not taken a specific course in finance, business banking is as alien to you as the concept of opposable thumbs is to an earthworm. So where do you start?
With the huge emphasis imposed on banks to adopt responsible lending in these times of financial turmoil, those financial institutions that have accepted the gauntlet of being responsible lenders have put tools in place for their start-up business bank account customers.
True, there are many different types of account out there. Each seem to offer differing fees, services included for that subscription and incentives to help you keep the financial aspect of your start-up business on track. One such tool is your business banking mentor. Oh, please!
What is a business banking mentor?
When you’re starting out in business, it’s easy to think of money not spent as money well spent. Even if you have a start-up capital, how do you know how and when to spend it and what to spend it on to maximise your profits?
Should you opt for short term gains, as is oft the temptation? Or would an investment in areas that will help you keep more of your hard-earned cash in the future be more advisable?
It’s for this reason, knowing when to spot an investment opportunity over folly, that banks like Natwest have appointed business mentors to show you the ropes.
Now, that’s very different from entrusting the controlling of your finances to a recruitment agency or umbrella company.
A business mentor will not only guide you through potential hazards like HSE guidelines and employment law, but will do so in such a way that empowers you carry on when it’s time for you to take the stabilisers off.
Natwest MentorAware breaks dependency on others for your finances
The Natwest MentorAware scheme literally gives you all of the tools to manage your cash flow and investments as well as providing an experienced professional to help guide you through the pile of information you have to learn as a start-up
There is a plethora of e-learning modules made available to its start-up business bank account customers. As a contractor, you have certain responsibilities. These are outlined in the Learning phase.
Having mentioned cash flow, there are other financial aspects you’ll have to learn how to interpret, manage and even project if you want to grow your business in the future.
Relevant to the start-up business sector, MentorAware also goes above and beyond the call of duty by delivering their Monthly Mentor ezine as well as regular digital bulletins.
As well as the learning and keeping up to date aspect offered by the service, the program also offers calculators that can help you calculate your tax amongst other easy-to follow problems they can solve.
Finally, there are even more ‘how-to’ guides available to Natwest MentorAware customers once they have an account. These touch on expansion, how and when to hire staff and what responsibilities you have for their safety once they’re in your employ.
Business banking, start-up, seasoned contractor or for a professional interim manager, can be a bind. Investing in products that will save you productivity time in the long run may not be something you’d considered just yet, but the sooner you do, the sooner you can concentrate on your skill set to maximise your income.
Services like this genuinely do pay for themselves over a course of the year and if you’ve not yet opened a business bank account, perhaps it’s time to think about doing so.