5 Decisions Every New Business Owner Must Make Early (Before Problems Start)

Why Early Decisions Matter

Starting a business is exciting. You're focused on customers, products, sales. The "boring" decisions—structure, money separation, tracking systems—get pushed to "later."

Then later comes, and these unmade decisions become expensive problems:

• Mixed finances you can't untangle
• No records when tax authorities ask questions
• Partner disputes over who decides what
• Scaling chaos because nothing was documented

Here are five decisions to make NOW—before problems start.

Decision 1: When Will You Separate Business from Personal Money?

The Decision: Set a date (ideally Day 1) when business money becomes completely separate from personal money.

Why It Matters

Mixed money creates:

• Impossible tax calculations
• No clarity on business profitability
• Difficulty getting loans (banks want business accounts)
• Personal liability issues
• Audit nightmares

What "Separation" Means

1. Separate bank account for business (even a personal account used only for business)

2. No dipping into business money for personal use

3. Pay yourself a salary instead of random withdrawals

4. Document any loans between you and the business

The Right Answer

Separate from Day 1. Even if your business is small. Even if it feels unnecessary. The habit is more important than the amount.

How TaxHQ Helps

Our Accounting System lets you categorize every transaction as business or personal. Clear separation from the start.

Decision 2: What Are You Really Selling?

The Decision: Define exactly what your business does and is known for.

The Problem

"I sell everything" = You're known for nothing.

Many businesses fail not from lack of customers but from lack of focus. They chase every opportunity, spread thin, and excel at nothing.

The Questions to Answer

1. What specific problem do you solve?

2. For what specific type of customer?

3. What are you the "go-to" for?

4. What do you say NO to?

Examples

Unfocused: "I do graphic design, web development, social media, and also event planning."

Focused: "I design brand identities for tech startups in Lagos."

Unfocused: "I sell clothes, shoes, bags, perfumes, and accessories."

Focused: "I sell corporate wear for professional women."

The Rule

If you can't explain what you sell in one sentence, your customers can't either. And confused customers don't buy.

Decision 3: How Will You Track Money and Work?

The Decision: Choose ONE system for tracking finances and stick to it.

The Options

• **Notebook**: Simple, always available, but hard to search/summarize
• **Excel/Google Sheets**: Flexible, can calculate, but requires discipline
• **Apps (TaxHQ, etc.)**: Automated, generates reports, but needs consistent use
• **Nothing**: Guaranteed problems

The Rule

> "If you no track am, you no fit control am."

The specific tool matters less than consistent use. A notebook used daily beats sophisticated software ignored.

What to Track

Daily:

• Money in (every transaction)
• Money out (every expense)
• Who owes you (receivables)
• Who you owe (payables)

Weekly:

• Cash balance check
• Outstanding payments follow-up

Monthly:

• Revenue total
• Expense total
• Profit calculation
• Tax set-aside

How TaxHQ Helps

Our Transaction Tracker is designed for Nigerian businesses:

• Quick entry for daily transactions
• Automatic categorization
• Monthly summaries
• Tax calculations built-in

Decision 4: Who Has Final Say?

The Decision: Establish clear decision-making authority from the start.

The Problem

"We'll decide together" sounds nice until:

• Partners disagree on pricing
• Family members have different visions
• Advisors give conflicting advice
• Quick decisions are needed

Too many voices = paralysis or constant conflict.

The Structure

Even for small businesses, clarify:

1. Who makes daily operational decisions? (usually the main operator)

2. Who makes financial decisions above X amount? (may need consultation)

3. Who makes strategic decisions? (direction changes, major investments)

4. What requires agreement vs. what can be decided alone?

For Solo Founders

You still need this! Decide:

• When will you consult advisors vs. decide alone?
• What decisions will you sleep on vs. make immediately?
• Who is your trusted sounding board?

The Rule

Clear authority prevents "scatter-scatter." Someone must be able to say "yes" or "no" definitively.

Decision 5: When Will You Build Structure?

The Decision: Start building structure NOW, not "when we're bigger."

The Mistake

"We'll organize properly when we get funding."

"We'll set up systems when we have more staff."

"We'll document processes when things stabilize."

By then, chaos is embedded. Fixing it costs 10x more than building it right from the start.

Structure That Should Grow With Your Business

From Day 1:

• Separate bank account
• Basic expense tracking
• Simple price list
• Customer record (even just phone numbers)

At First Employee:

• Written job description
• Basic onboarding checklist
• Payroll system (even manual at first)
• Tax registration (TIN)

At First ₦1M Revenue:

• Proper accounting system
• Invoice templates
• Customer database
• Quarterly tax review

At ₦10M Revenue:

• Full accounting software
• Employee handbook
• Documented processes
• Regular financial reports
• Tax professional relationship

The Rule

> "Structure supposed to grow with business — no be after problem don come."

Summary: The 5 Early Decisions

The Cost of Delay

Each month you delay these decisions costs you:

• **Money**: Through waste, tax overpayment, missed deductions
• **Time**: Untangling problems later takes 10x longer
• **Stress**: Constant uncertainty and firefighting
• **Opportunities**: Banks, investors, partners want organized businesses

Take Action Today

1. Open a separate business account (takes 30 minutes)

2. Write your one-sentence business description

3. Choose your tracking system (we recommend TaxHQ)

4. Document who decides what in your business

5. Create your first simple checklist for your most common task

These five actions, done today, will save you years of problems.

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*Ready to get organized? Start with our free accounting tools—designed for Nigerian businesses from Day 1.*