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Top 6 Financial Hacks for New Entrepreneurs
Ever wondered how to start your own financial business? Where to get the start-up finance? Do I have to start my business without money? These are common questions among new entrepreneurs.
Running a business is difficult. Starting up your own business is more difficult.
Demotivated staff as well as stiff competition can make even promising start-ups close shop. If yo are thinking of launching a start-up, here are six tips to help you avoid some key mistakes entrepreneurs make when starting up a business:
- Cash flow management.
Imagine having a business where you cannot pay your own employees, suppliers? As an entrepreneur, would you prefer a business which makes profits but cannot pay its expenses? Would you prefer a business that has stable cashflow despite not making profits?
Cashflow is the total amount being transferred in and out of the business. A stable cashflow is more important than making profits. Big companies breakeven even after more than five years since inception. Their key secret is having a good cashflow.
As an entrepreneur, if you do not stay on top of your cashflow, you put your business at risky position. It does not matter how promising your business idea when your business runs out of cash as you will hit a brick wall. Create a budget and stick to it!
- Establish financial goals
Most will say they are aiming at building a multi-billion-dollar company. Who says its not possible?
As an entrepreneur, you will need to break that goal down into SMART goals. That is, create Simple, Measurable, Achievable, Realistic and Timely goals. Periodic (Daily, Weekly or Monthly) goals will assist you stay on track as well be flexible enough to make necessary adjustments for growth.
You can create intermittent milestones that you aim to hit. As you clear them, it will even boost your confidence to keep on through your entrepreneurial journey.
- Monitor all your expenses
With a new start-up, you might find yourself having crazy expenses hitting you from all sides. This will likely affect your cashflow management. Having an accounting software will help you be organized as well as assist you monitor your expenses. This software will come in handy also when its time to file and pay your taxes.
With time, consider hiring a professional accountant as accounting operations become complex as the business grows.
- Minimize your fixed expenses
A big office, in a posh locality is desired by every entrepreneur. Unfortunately, these kind of expenses will kick you down the drain. Limiting your expenses at the beginning is the key to longevity.
Operate thin so that you can allocate most of your capital to growth of the business. Don’t forget, generating revenue is the main priority. Don’t focus on the wrong things!
- Remain optimistic but prepare for the worst
As an entrepreneur, you must be optimistic that your business will thrive and be a giant in the market. Unfortunately, you never know what will happen when you are starting up your business.
Don’t quit your job and or eliminate your main source of income until the business can stand on its own. Ensure to keep reserves in an emergency savings account. You can never be too prepared for the worst.
- Time is money
Time is the only asset in a business that cannot be replenished. It is the most valuable asset.
At the beginning of the business it seems you have “free” time. Always remember that your time has monetary value more than anything else. You cannot afford to waste your time in vague things such as meetings, meaningless travels or fruitless interactions.
Remember; When you are wasting your time, you are wasting your money!