By Morgan International Staff Writers
There are so many things to think about when kicking off with your first startup, finances being one of them. Here we take a look at a few tips that will enable you to get your finances right from day one.
- Cash flow is key
Don’t ever take your eye off the ball when it comes to cash flow; you should always know what your money situation is at any given time. If it comes as a shock to see that money is tight when you check your accounts, you are not doing it properly. Track every single dollar and treat each one spent or coming in as vitally important. Keep to a budget and don’t let yourself get into a sticky mess financially.
- Track spending
Particularly at the beginning, you are going to have a lot of expenses. Work out how much you need to set aside for this and stick to it. Rather than hire an accountant to do the books, use one of the fabulous accounting packages that are online (some free) or set up your own spreadsheet in Excel. If you do this on a regular basis, at the end of the tax year you will have your figures all ready to go. Only go to the expense of a professional accountant when your business starts to become too much for you to handle.
- Limit your fixed expenses
Don’t go overboard when it comes to things like office space or facilities/equipment. A single room should do to begin with; some people convert garage space or use a spare room. Later on, as you grow, you may want to look at hiring a small commercial space or even a spot in serviced offices. It is essential that early on your capital is fed into growth and not overheads. Keep revenue as your top priority and don’t lose focus.
- Maintain a safety net
Don’t expect to make a lot of money from day one; keep a safety net/slush fund of savings so that if you do have dry periods financially, you can keep going. If you are giving up a full time job to go it alone, maybe maintain your key source of income for a while until your business is ready to replace it. Some people decide to create their own start up after being made redundant – this can also work, particularly if you have a large redundancy sum of money to keep you going while the business grows.
- Love your customers
Each and every customer is paramount to the success of your business as, without them, you have nothing. Set time aside to acquire them and don’t neglect your marketing. Try and make use of the channels that cost little or nothing, such as social media. Once you have a customer, look after them well and maintain your relationship. This all bodes well for building a great client base.
Bringing your first startup to life is incredibly exciting but do take note of our tips and ensure that you begin slowly, building steadily and always paying attention to that one vital things; finances.
For those of you looking to begin a new business, make use of our professional training courses which will provide you with much more information on how to make your startup successful.
Contact us now to find out which of our training programs are most suitable for you.