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5 Simple Financial Tips For Startups

Starting a new business can be very stressful and managing your business finances properly is going to be crucial to your success. Almost 30% of new businesses go under due to running out of cash.

Below are 6 tips from Strategic Financial Management that will help you to keep your business in the green while starting up:

5 Simple Financial Tips For Startups

Create A Budget

The first step to managing your business finances is to have a budget to work from. This will help prevent you from overspending and will give you something to work from when you are creating your projections.

Planning your business expenses and working from a budget will take the guess work out of the equation, which means you will be much less likely to run out of cash unexpectedly.

Make sure to accommodate for all your business expenses, both large and small. It is often the small expenses that add up that take you by surprise at the end of the day.

Make Use Of A Professional

It may seem like an unnecessary expense to hire a professional to assist you with your business finances, but keep in mind that making use of an accountant means that you have someone on hand that knows all about income and expenses, taxes and how to manage your finances.

Making use of an accountant may mean the difference between the success and failure of your business, especially if you are not very knowledgeable in the area of finances and taxes.

What Is The Value Of Your Time?

Knowing what your time is valued at will be essential in your business activities. You want to always ensure that you are making the best use of your time and that you are working on something that has a good ROI (return on investment).

Work out your hourly value and make sure that you are always busy with activities that have a high ROI and leave the lower ROI activities for other people. If you don’t have employees you can always outsource a lot of these tasks so you can focus on the most important business tasks.

New business startup tips

Minimize Your Fixed Costs

Yes having a fancy office and the latest gadgets to work with is always awesome but do you really need these big expenses especially if you are just starting out?

Make sure that you only spend money on the absolute essentials and keep that to as low a cost as possible. If you need a new laptop don’t buy the top of the range and instead of renting office space see if you can hold off getting your own office for as long as possible by working from home instead.

Watch Your Cash Flow

Make sure that you know exactly how much cash you have on hand at all times and know what expenses are coming up too so you know when to expect highs and lows in your cash.

It is not going to do you any good landing a massive job when you are not able to front the cash expenses to complete the job before being paid by your customer.

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Lynne Huysamen

Mommy to a pigeon pair, blogger and online marketer. Lover of chocolate, good books and buckets of coffee.

6 Comments

  1. Wow. Indeed this post came timely and it is no doubt very helpful. I started a firm few months back but i noticed i have spent so much on office equipments… Hiring an expert will definitely help reduce drastically chances of failure for startups though sometimes it could be cost intensive.
    This post has been really helpful and i will follow your steps as laid down. Thank you once again for this great article.

  2. Nice article there on 5 simples financial tips for start-ups,you really did well in this article,i find each and every part of this article useful and am sure many young entrepreneurs will find it useful too.Starting up a business can be challenging at the beginning because you are going to be spending than earning returns.it is essential to know how to manage cost effectively in other not to run out of cash,never make unnecessary spending because that is going to have a negative impact on the business at the end of the day.

  3. To start a business, some simple financial tips have been discussed in your post as you will have to spend a certain amount of time on regular basis. Actually no work can be done without time, and if you spend more than a certain amount of budget, it is a loss of business. Thank you so much for sharing important information that might come out

  4. I want to commend you for taking out time to write this article about five simple financial tips for start ups.  These information are quite interesting, because life in its self is business. So it didn’t just talk about business alone but also how to live a good financial life. I will love to add that starting a business is not  always easy. It takes great detamination and discipline to for laid down principles of business 

  5. Thanks Lynne for this great post. The financial aspect of running a business especially for startups could be a problem. Creating a budget is very important, and owners must engage their time on things with better returns on investment. Hiring a professional no doubt is important, but I think getting a bookkeeper is preferable cost-wise for startups compared to an accountant. As regards the cash flow, I think startups should focus more on ways of generating more income rather than minimizing or cutting cost. What do you think?

  6. Hey Lynne,

    I benefited from reading your educational post. Actually many people are starting a business but few are successful. Due to lack of proper and adequate knowledge, many businesses getting collapsed. Your effective tips for starting a new business are really great. We need to know how to spend money alongside income as well. From my tiny experience, in our domestic environment, a good income is possible through affiliate business.
    Thank you sincerely for such a valuable article.
    Warm wishes,
    Ranao.

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