If you’re planning to initiate a business – online or offline – you’ll need cash flow and sound money management to safeguard you through those early stages when your business is most vulnerable. Some businesses fold during those first months simply due to mistakes that can be avoided, or not managing business finances wisely enough.
In this post, we’ll take a look at some tips that will safeguard your startup, so you do not find yourself short of cash before your new business has a chance to grow roots and flourish.
#1 – You Need a Business Plan
You might have come across the saying, “If you fail to plan, you plan to fail”.
It’s very true. Without a business plan of some description, you really have no guidelines to follow. This is especially true when it comes to the capital you have allocated for startup expenses and ongoing costs.
A business plan doesn’t need to be daunting. It can start off fairly simple and will evolve as the mechanics and finances of your business become clearer in time. A business plan will also help you refine your ideas, so there’s more chance of success and less chance of wasting money unnecessarily.
#2 – Maintain a Healthy Credit Score
You might not want finance right at the very beginning, but down the track, you may decide to seek a loan to expand your business operations. While it’s still possible to secure credit even if your credit score isn’t perfect, why leave things to chance?
It’s essential to maintain the health of your credit rating, and this includes paying utility bills just as much as it does your suppliers or any form of credit you have with the banks. All bills you need to pay can positively or negatively affect your credit score.
#3 – A Fast Cash Loan Can Extend Your Cash Flow
There might be a time where you require just a little extra cash flow to see you through to the next level. This can be in the way of a convenient small cash loan from independent lenders like Sunshine Loans.
With low interests rates and very transparent terms, you can usually borrow up to $2000 and have the money in your nominated bank account that very same day.
Fast cash loans are perfect for startups, small businesses, entrepreneurs and the self-employed. Virtually no paperwork is required, and the application process is done online in minutes.
#4 – Team Up With a Good Accountant
A qualified accountant who has your best interests at heart will likely be your best friend when starting up and running a business. Unless you’re an expert in all things accounting, your accountant will be able to offer advice on the best way to proceed and how best to use your capital or credit to keep your business moving with good profitable direction.
While accountants charge for their services, when you’ve teamed up with a really good one, your accountant will likely save you (and make you) way more money than you spend on their fees.
No business should be without one.
#5 – If You Waste Time You’ll Lose Money
There will always be teething problems when you start a new business, but the sooner you can iron out any kinks, the faster you’ll become profitable.
We’re all aware that time is money in business, so the less wasted time there is in the early stages, the sooner your startup will be out of the red and in the black. To achieve this, you need to monitor both your processes and your spending to determine what’s efficient and what needs to be discarded or altered.
#6 – Keep Some Funds In a Backup Account
Unless you’re psychic, you won’t accurately be able to predict the future. Sometimes something comes up that’s out of your control that could hamper your cash flow for a while. For this reason, it’s imperative to have some backup funds in an account that you don’t touch unless it’s an emergency.
This will not only give you more peace of mind. It’ll also safeguard your business so you can get through tough times and continue out the other side.