Second of two installments
Let’s face it. Start-up businesses are exciting new ventures. But along with creative ideas, having a solid financial plan is crucial to success. Last week we offered our first five tips to help separate you from the herd. Here are five more recommendations to ensure your long-term success!
#6: Be cost-conscious.
Just when you thought those days of eating Ramen noodles were behind you, you started a business. While that doesn’t mean you should live on next to nothing during your start-up years, it does mean you should limit your fixed expenses, especially in the beginning. That way, you have some time to get a handle on variable costs, as well as overhead, without getting into financial trouble. So skip the trendy offices and catered meals, and instead focus on building your customer base and generating revenue.
#7: Keep track of your expenses.
When you’re running a business, you’re pulled in many different directions. From back-to-back strategy meetings to customer service fires, every day is a whirlwind. That’s why it can be so easy to lose track of the money you’re spending. But when you’re doing your taxes, you can get into trouble if you don’t track expenses. The same goes if you’re attempting to secure additional funding to grow your business. Instead, find an online bookkeeping system you’re comfortable with and commit to keeping it up to date. Or hire a contractual part-time professional bookkeeper to know you are on the right track.
#8: Be prepared for anything.
With a start-up, anything can happen. That’s why it’s often best to dip your toes in the water first. That means before handing in your resignation, keep your day job until you feel comfortable your start-up has a financial future. Once you’re ready to do that, make sure you’re still saving for retirement and keeping a healthy personal cash reserve on the side in case sales slow down or your business runs into other financial issues.
#9: Pay yourself.
You want to minimize your overhead when you’re first starting out. That’s understandable. However, it’s important that you pay yourself what you’re worth. If you don’t – and find yourself in desperate financial circumstances – it will impact how potential investors view you. And not in a good way.
#10: Don’t be afraid to ask for help.
If you’re interested in starting a business, or have just launched one and need financial advice, please contact us today at GCW Capital Group. Wherever you are in the process, we can offer you the expert tools, information and resources you need so you can achieve your business goals today, manage risks, and plan ahead for a successful financial future.
To schedule a consultation, please call 716-256-1682, request an appointment using our online form, or email us at firstname.lastname@example.org.
GCW Capital Group helps clients navigate the complex landscape of financial planning with unbiased advice and guidance. Our mission is to be a source of financial clarity, confidence, leadership and support. Learn more about the services we provide at GCWCapitalGroup.com. Or schedule an initial consultation by calling 716-256-1682, using our online form or by emailing email@example.com.