After much research, meetings, networking, and fundraising, you are excited to launch your Startup. Am really happy for because it is not an easy step to take. A lot of effort goes into starting a business, that is why some are afraid to start.
But to help you survive financially, I will be giving you 8 tips that can help you manage your finance as you are about to launch your startup.
Stay on top of your Cash Flow
One of the reasons why some startups fail before they even begin is that they run out of money. This means that for you to survive financially, you need to know where your money is coming from and where it is going. Even if you have a brilliant idea, if you run out of money, there is little or nothing you can do.
The bottom line is, create a budget and stick to it.
As you launch your startup, expenses will appear from different angles, if care is not taken, you might over-spending. A suggestion might be to hire a full-time employee to handle the accounts, but that might prove a bit expensive. A better idea might be to make good use of the different accounting software available online.
Eventually, you might need to employ an accounting professional as the business grows, but in the beginning, you can still look for cost-effective ways to monitor your account.
Try to limit your Fixed Expenses
As you launch your startup, you might have the desire to spend a lot (maybe to create a good first impression). But the truth is, from the beginning you don’t need an elaborate office in a silicon valley kind of environment or lavish your employees with three meals a day. As the business grows, all these things can be put into consideration.
Some startups focus on the wrong things in the beginning, like like fancy offices and over-the-top amenities – and forget that generating revenue should be their top priority.
Do not quit your job and eliminate your main source of income until your business can replace that income. Keep reserves – both personal and business – in an emergency savings account. You can never be too prepared for bad situations. Sadly, they do happen, often when you least expect them.
So when you start making money, consider investments, even small ones. Anything is better than nothing – consider micro-investing opportunities.
Your time is Equals to money
Your time should be of great importance to you, every minute should be expensive because you have a fixed amount of it every day. So, when you are planning your schedule for the day, always keep that in mind. When you spend time on things not related to your business, it means both time and money is wasted, which you cannot afford to do.
Try all your best to get Customers
The sooner you begin to figure out how to get customers, the better chance you have of succeeding in your business because without the customer you don’t have a business.
Identify different channels to get customers, test as many channels as possible, both in terms of time required and cost, so focus on the most lucrative opportunities. Once you successfully scale those, you will have the financial capability to explore other channels.
Make sure you pay yourself
Your hard work and dedication to your business alone are not going to put food on your table – you need to pay yourself. Although you do not need to compensate yourself with a big fat salary, in the beginning, make sure you pay yourself enough to live.
Give yourself enough to live comfortably and focus on building your business. When you eliminate personal financial stress, it allows you to stay ultra-focused on your business. Give yourself some padding and comfort.
Monthly, weekly or even daily revenue goals allow you to stay on track and make the adjustments necessary for constant growth. You can even set milestones to hit along the way, giving you many smaller goals to constantly hit. Knocking out little goals can give you the confidence needed to keep powering through the entrepreneurial journey.
When you apply all the above tips, you can be sure to survive financially from the beginning, all it will help you as you grow your business to a multi-million dollar company.
If you find these tips helpful or have other financial tips to add, kindly drop them in the comment section below.