You've realized that launching a startup is now easier than ever. You’ve come up with a good startup idea, found the perfect location and thought of a cool business name. Still, there’s much more to running a startup than that, and one of the things you simply can’t ignore is finances. In order to be able to run your startup, you need to know how to handle the money. And since you could probably use all the help you can get, we came up with a list of top 5 finance tips for startup owners.
KEEP PERSONAL AND BUSINESS FINANCES SEPARATE
One of the most important things you need to remember when launching a startup is that personal and business finances don’t mix. You might be tempted to keep your company’s money together with your own but that’s hardly going to do you any good. Not only will you lose track of how much your startup has made, but you might also start using the money you need to pay for your company’s expenses. That being said, it’s recommended that you start a whole new business account just for your company.
LOOK FOR WAYS TO REDUCE YOUR EXPENSES
When running a business, it’s important that you make as much profit as possible. While improving your marketing strategy and attracting more people to your business is guaranteed to do this, another smart thing to do is keep reducing your expenses. Luckily, there are many ways you can do this. For instance, you can try renegotiating with your vendors and get a better deal. In most cases, they’ll be ready to give you a discount if you commit to them long-term. It’s also a good idea to buy office supplies like paper and pens in bulk.
DON’T BE AFRAID TO TAKE A LOAN
Chances are you’ve heard the adage that you have to spend money to make money. What this means is that you need to invest a lot of money into things like the office, equipment and employees in order for your business to be able to operate. But what to do when there’s no money to spend? There are companies that offer start-up business loans and turning to one of them can solve all of your problems. Just make sure you come up with a plan for repaying the loan as quickly as possible.
MAKE SURE YOU GET PAID
If you want your startup to succeed, you need to make sales. However, you can be making sales but if you’re not getting your money, you won’t be able to succeed. So, instead of just making sure you sell your products, you also need to get paid. If a customer is late with their payment, you can try sending them a polite reminder. In most cases, that should be enough to get you your money. If a reminder doesn’t help, you can always turn to experts in debt collection who’ll be able to help you.
HIRE A GOOD BOOKKEEPER
Bookkeeping is an important part of running a company. The problem is, just a tiny mistake could end up costing your startup a real fortune. Therefore, instead of running the books yourself, you might want to consider hiring a bookkeeper who’ll do it for you. Not only does this eliminate potential mistakes, but it also saves you time and energy you can spend on your core operations. Ideally, you’ll be able to find a bookkeeper with enough experience in your industry who’ll be able to help you during your company’s early days.
Have these 5 tips in mind and you’ll see how exciting running a startup actually is. The more effort you put into managing your company’s money, the more likely it’s going to succeed. Author: Diana Smith