Know Your Numbers Before You Open

§ October 1st, 2026 § Filed under Uncategorized § No Comments

You are about to start an “official” business. This month, we dig into the numbers. 

In my 15 years of advising small businesses, I have found that the most frequent mistakes that new and prospective business owners make is underestimating how much it will cost to start up and operate the business from month to month. 

Start With a Simple Rule

The secret to a successful business is simple. Bring in more revenue than you spend. Easy, right? The problem frequently is that new business owners underestimate the startup and ongoing costs. I have had very few who have set their prices too high. There are definitely a large number who overestimate how many sales they will make, however. 

Startup costs are those that you have to spend before you open the doors or sell your first item or service. Ongoing expenses keep the business running after you open. 

It is difficult for a business to turn a profit in the first year. No matter what industry you are in, you will likely need some money (working capital) beyond the startup costs to get you through the first six months to a year. 

Of course, all of these costs vary depending on the business. A home-based business may avoid rent and build-out costs, while some industries require licenses, certifications, equipment, or specialized training.

Use AI to Build a Starting Estimate

AI can help you create a first-pass list of likely startup and operating expenses. Give it specific details such as your location, business size, number of employees, square footage, and anything unusual about your operation. Then ask it to separate ongoing costs into fixed and variable expenses.

·       Fixed expenses: Costs that stay relatively consistent from month to month, such as rent, software subscriptions, and some insurance.

·       Variable expenses: Costs that rise or fall with sales, such as inventory, credit-card fees, commissions, packaging, and shipping.

Here’s a sample prompt for a coffee shop:

“What startup and ongoing expenses are usual for a coffee shop in Northwest San Antonio? Separate ongoing expenses into fixed and variable costs. What are typical sales for a 2,400-square-foot shop? What additional revenue streams could increase sales?”

Replace the coffee-shop details with your own. You may also want to compare responses from more than one AI tool. Treat the results as a starting point, then verify important numbers with vendors, landlords, industry sources, and professionals.

Watch the Timing of Cash Flow

Not every expense arrives monthly. Insurance, licenses, taxes, subscriptions, and other bills may be due quarterly or annually. A business can look profitable on paper and still run short of cash when a large payment comes due.

For example, if you pay a six month premium on your insurance, you need to make sure you will have the cash needed. Budgeting ahead of that payment will make you less likely to have to purchase items on credit or fall behind on monthly expenses. 

Remember: Estimates Are Still Estimates

Understand that these are all estimates. Estimates = Guesses. Research makes the numbers more realistic, but prices, sales, and timing will change. But remember that they are still estimates with validity. Expect them to change over the course of the business.. As you start to open, prices may be significantly higher than you expected. As a result, it’s always a good idea to build a contingency cushion. 

Coming Next Month

Now that you have an idea of how much you need to start and operate the business, where will the money come from? Next month, we’ll talk about sources of startup funding. 

Becoming an Official Business

§ September 1st, 2026 § Filed under Uncategorized § No Comments

Now that you’ve identified ways that your skills can turn into a business and you’ve taken steps to future-proof your business so that AI is an advantage, does it feel like time to officially start?

Make Sure the Idea is Feasible

Before you spend money, be clear about the problem you solve and who you solve it for. Use this simple formula: “I help [specific customer] solve [specific problem] by providing [product or service].” Define your ideal customer as specifically as possible. Consider age, income, location, education, interests, or other traits that affect buying decisions. The clearer your target, the easier it is to reach the right people. 

Know Your Competition – and Your Difference 

Study your competitors. Is the market crowded? What will make customers choose you? San Antonio has thousands of Mexican food restaurants, yet many thrive because they are known for something specific: great tortillas, memorable salsa, excellent service, or a strong neighborhood following. Define what makes your business different before you invest heavily. 

Choose the Right Planning Tool 

You may not need a full business plan unless you are seeking a loan or investment. For many small businesses, a one-page plan or Lean Canvas is enough to get started. At minimum, answer three questions:  What are you selling, and who will buy it?  How will customers find and choose you?  What will it cost to start and operate, and how much can you realistically earn? Also decide how much you can invest and whether you have enough personal income or savings to support yourself until the business becomes profitable. 

If you have determined there is a market for what you are selling, then move to making it official. 

Choose a Strong Business Name 

A good name should be: 

• Memorable and easy to say 
• Easy to spell and search 
• Relevant to your customers 
• Flexible enough to grow with the business 
• Available online and for registration 
• Free of serious trademark conflicts

Try this test: Tell several potential customers the name without explaining the business. Ask, “What would you expect this company to sell?” Their answers may reveal whether the name is clear.  Their answers can be surprisingly educational.

Think Beyond the Logo 

A branding professional can help you shape your name, message, positioning, and visual identity – not just design a logo. Because business owners are often too close to their own ideas, outside perspective can prevent expensive mistakes. 

Choose a Business Structure 

Depending on your situation, you might operate as a sole proprietorship with an assumed name (DBA) or form an LLC, S corporation, or C corporation. Your choice can affect taxes, liability, and legal requirements, so professional advice from an attorney or CPA may be worthwhile. 

Helpful resources: SBA guidance on business structure and the State of Texas “Start a Business” guide.

Remember: Forming an LLC or corporation does not replace business insurance. Insurance is what protects business property and helps cover many operating risks. 

Follow the Steps in the Right Order 

1. Choose your business structure 2. Register the business 3. Get an EIN from IRS.gov 4. Obtain required licenses, permits, and tax accounts 5. Open a business bank account 6. Purchase appropriate insurance 7. Begin operating 

You can apply for an EIN directly through IRS.gov at no charge. Be cautious of websites that charge separately for an EIN unless the fee is clearly part of a broader formation service. 

Texas Veteran-Owned Businesses 

Texas veterans may qualify for certain business-formation benefits, including a waiver of the filing fee. The process may require veteran verification and supporting documentation. Check current requirements with the Texas Veterans Commission, Texas Comptroller, and Texas Secretary of State before filing. 

Next month, we’ll dig into all the numbers. 

If you want one-on-one guidance, please connect with me at Launch SA. Click on Request Assistance and specify you want to meet with me.  

Future-Proofing Your Career Against AI

§ August 1st, 2026 § Filed under Uncategorized § No Comments

Are you worried that AI will take over your job? Instead of fearing it, adapt by focusing on what AI cannot replicate: high-level strategy, human connection, and emotional intelligence.

Become an AI Power User

Instead of competing with AI, leverage it to boost your productivity.

• Delegate tasks, own the solutions: Use AI to streamline research, brainstorming, content drafting, and outlining.
• Shift from tasks to value: AI excels at tasks, but humans provide solutions. For example, while a bookkeeper can use AI to automate data entry, their real value lies in helping business owners understand how the money works for them.

Build Your Brand and Network

• Be a connector: Automation cannot replace genuine human relationships. Build a robust, diverse network of professionals like attorneys, bankers, suppliers, and other professionals to become an invaluable resource for referrals.
• Establish a brand: Create a reputation for solving problems by sharing your expertise through newsletters, podcasts, videos, or social media.

Emotional Intelligence Is a Career Advantage 

Focus on developing the soft skills that AI cannot replicate, such as trust-building, negotiation, leadership, conflict resolution, and ethical decision-making. The key to mastering these is raising your Emotional Intelligence (EQ).

The Four Pillars of EQ:

• Self-Awareness: Can you recognize your own emotions and how they affect your thoughts and behavior? Have you reviewed your strengths and weaknesses? 
• Self-Management: Can you control how you react to your emotions and adjust your reaction in constructive ways? Do you have the ability to control your impulses and adapt to change?
• Social Awareness: Are you empathetic? Can you put yourself in someone else’s shoes long enough to understand their needs and emotions? 
• Relationship Management: Can you create and keep strong, healthy relationships and communicate clearly? Can you manage conflict and inspire others? 

Simple Steps to Improve Your EQ:

• Identify your triggers: When anxious or frustrated, pause to identify the root cause.
• Listen actively: Focus on both verbal and non-verbal cues, and try to put yourself in the other person’s shoes. Ask yourself how you would feel if you experienced what they have. 
• Pause before reacting: When you were young, you may have received the advice to count to ten before you react to a situation, especially if you are angry. It’s still good advice. Take that pause and a deep breath before you respond. 
• Own your mistakes: Take responsibility for your mistakes and be open to criticism. Thank the person for the feedback. You can sort out whether the criticism is justified or not after the fact. 

One of the most important lessons of my life is that no one pushes my buttons. I always have a choice in how I react.  

Resource: If you want more information on EQ, check out this video from Daniel Goleman.

Experience is Your Superpower

Younger workers may be more comfortable with new technology, but experience brings judgment, perspective, and people skills. Learn to use AI effectively, then combine it with the strengths you have built over time. 

What Makes a Business “Real”?

I meet with many people who want to turn what they are doing into a “real” business. You have a real business the moment you sell something to someone. Next month, we will cover the basics of making your venture official and the concrete steps to get started.

If you want one-on-one guidance, please connect with me at Launch SA. Click on Request Assistance and specify you want to meet with me