#1 Business Tip for New Small Business Owners from the Founder of the Booming Fire & Rice Paella Franchise
Chef Paul Schmidgall, the founder of the Fire & Rice paella catering franchise, remembers what it was like when he first opened the doors of his Naples food truck more than a decade ago and the challenges that went along with being a new business owner. With an MBA in International Business and a degree from the College of Culinary Arts at Johnston & Wales University, Chef Paul is reaching out to small business owners, particularly in the food industry, to share some helpful tips for growth during the first two years.
Beating the Cash Flow Challenge
One of the biggest challenges of starting a new business, according to Chef Paul, is cash flow. When you’re just starting out, you’re likely in a lower tax bracket, and you want to take advantage of that situation. During your first year, you need to invest in your business, but you also need to set enough money aside for taxes throughout the year.
No one wants to be blindsided on April 15th, so it’s critical to plan ahead. Chef Paul recommends creating a new tax bank account and setting aside 31% of your income over the year, 6% for sales tax (in Florida) and 25% for federal taxes. This allows you to stay on track through your first year of business and avoid being stuck with a big tax bill in April.
If you choose to continue implementing this strategy beyond into your second year of business, you’ll likely end up with a surplus as your profits grow. That’s when you can determine other ways to invest and grow your business even more, which is a good position to be in at the end of year two.
From Naples Food Truck to National Franchise
Creating a tax bank account allowed Chef Paul to focus on creating and investing in new ways to grow his business. What started out as a Naples’ food truck expanded into a full-service catering company and is now a national paella franchise. By planning ahead and investing in your business the right way, you can create your own vision for growth and make it a reality.
If you’re interested in learning more about Fire & Rice paella franchise opportunities or Chef Paul’s journey, call Fire & Rice – Naples Original Paella! at 239-269-8857. We look forward to hearing from you!