2018 is a growing year for startups. However, not all startups make it through the bumpy journey. There always will be challenges along the way, especially those concerning finances and survivability. I had my fair share of financial troubles as an entrepreneur, and I was able to overcome them by keeping the right mindset and following the correct practices. Here are some financial tips for startup entrepreneurs out there:
Manage your cash flow
This is your most important responsibility as an entrepreneur. To keep the business and your sanity was going, always stay on top of your finances📈. Know where each cent of your money comes from, and make sure you know where each cent goes. Keep in mind that if your funds run out, it doesn’t matter how good your products or services are. Your business will fail. So do as I did – make a budget and keep strictly to it. To manage your finances better, you may invest in accounting software💻 so that you can track all of your expenses—just like I did.
Keep fixed expenses low
Your first month in the business is not the perfect time to fulfill your dream of a fancy office with gourmet meals and the best coffee. That comes much, much later. When you are just beginning, you need to stretch your capital as much as you can. Keep your fixed expenses low, so your funding can be spent on the more important things that will help your company grow. Remember, your top priority should be to:
- 💹Generate income.
- 📉Minimize expenses.
Think positive, but be prepared
Yes, you should always think positive because that is where your motivation, energy, and drive come from. But also be prepared for any eventuality because, honestly, anything can happen. Don’t let the hype consume you. Keep the facts and figures in check. Navigate your path well by planning and preparing📝 for the inevitable setbacks.
Focus on getting customers
No customers – no business. You should allow time for planning how to get customers to make your startup survive and thrive. You can try different ways of acquiring customers:
- 💰Allocate budget for marketing as it’s one of the core aspects of any business.
- 👨👩👧👦Know your audience.
- 📜Run marketing campaigns that best capture your audience.
Create financial aims
Yes, you are going into business because you want to make it big. But ask yourself, how big? And how will you get that big? Envision just how big you want to be, then break this goal down into smaller ones that are easier to reach🎯. For example, you can set daily, weekly, or monthly income quotas. You can also set milestones to keep you on track. Accomplishing these particular smaller aims will give you and your team the push to keep on going for your bigger financial goals💵.
Time is equal to money
As a business owner, your greatest asset is yourself and your time. You are the founder of your startup, and only you can plan the best way to drive it to the exact destination you want it to head⏩. The sad thing is that your time is limited – you can’t do everything on your own. Thus, you should learn to delegate the smaller tasks properly, so you can focus your limited time on thinking and working on the bigger things⏱️. As long as you dedicate your time to doing the things that only you can do, money will follow.
I know it can be very tempting to put in all your money into your business and keep expenses low by not paying yourself a salary. But then, unless you have another source of income, how will you survive? So be sure that you put in a salary💵 for yourself. You deserve it.
It is not easy to be a startup entrepreneur. But if you surmount all the challenges that each day brings, it can be among the most rewarding and fulfilling things imaginable😃.