When you’re in the early days of a startup venture, money means everything. While some startup ideas require very little in the ways of financial resources, the vast majority will need some form of monetary backing. Managing money in a cash-strapped startup can be very stressful, but with the right planning and a more thorough understanding of your short and long-term needs, you make it far more likely to see your startup grow. All businesses face money issues from time to time, but in the precarious world of the startup, entrepreneurs need all of the advice they can get when it comes to finances. Here are some tips that might make the balancing act of spending and profiting much easier.
Doing Your Accounts
One of the most important tools to prioritize is the right accounting software. You could outsource your accounting needs, but if money is tight, then this can be an unnecessary expense. Look at the potential software available for improved accounting and implement its use from day one of your startup. Make sure that you:
- Use software with a good record-keeping function
- Have a business bank account
- Learn how to use your software
- Keep a copy of all of your business receipts (including donations)
- Understand your tax obligations
Most software options are easy to install and use, and will make taking control of your accounts much easier.
You want your customers to be able to pay you in the ways that they prefer. The easier you make it for those consumers to pay, the more likely that they will follow through with a purchase. Look at going further than bank transfers and PayPal. Look at:
- Amazon Pay
- Visa Checkout
Think about how your target audiences prefer to pay and adopt those payment methods.
You should always be looking ahead at your ongoing costs and your expected profits. If either of those two figures aremissed then you will have an issue. When it comes to successfully managing your financial forecasts, always ensure that you:
- Plan for potential issues (optimism is good but can hinder your startup’s real-world development)
- Develop a deeper understanding of your ongoing expenses
- Avoid making assumptions
- Streamline your sales process
Make sure that you regularly monitor your financial projections and adjust them as needed.
Finding Funding Solutions
Getting short-term loans is no longer something that you have to rely on your bank for. While not every startup will need to rely on outside funding, it can be very useful for those entrepreneurs who don’t want to risk their personal finances and don’t have family or friends to borrow money from. Look at options like small business loans from biz2credit.com, and you may have access to the vital funds needed to maintain growth or make the most from your launch.
Chances are that you don’t need large numbers of staff to run your startup in the early days. The startups that are more likely to succeed are those that take careful control over what they spend on. Make the most of freelancers and part-time staff, and consider using college students that are looking for startup work experience. The more that you can cut your immediate wage bill the better. If you do need a team, offer more than just a good salary. You might be able to get someone to sign a contract at a lower rate if they get certain benefits.
While paying for certain businesses areas will cost you money, the rewards are often worth it. While you should avoid outsourcing your accounts in the early days of your startup launch, it’s always worth looking at other business areas. It’s particularly useful to outsource those tasks that are a challenge for you. If you struggle with marketing, then making use of professional marketers can often be the key to startup growth without the strain of hiring a full-time marketer. When it comes to what to outsource, consider:
- Data entry (look at platforms like Fiverr or Upwork)
- Receptionists and customer service
The more that you can justify outsourcing, the more time you free up for the tasks that you excel at.
Have Financial Goals
If you think that you’ll be judging your success based solely on the fact that you’re still operating, then you’re setting the bar very low. It’s important for all business owners to have financial goals. Partly, this is because goal-setting has been proven to make it easier to get the results that you need. The vaguer your financial goals, the more likely that you and your team will start working at cross purposes. Clearer goals and a more aligned team focus are essential, especially at the business launch. Have clear, achievable goals and monitor them regularly.
Getting the financial side of things well-planned and organized is one of the most important actions to take when you’re preparing for a startup launch. Get your finances right from day one, and your startup stands a much greater chance of establishing its name and lasting long enough to create a loyal audience.