Raj Anand, Goodman Lantern
There’s a lot of pressure on startups to succeed, despite the odds. It’s easy to let standards slip when you’re under pressure, so it’s important to start off by developing some good habits. There are countless startups that fail and disappear because they weren’t financially savvy.
Your business is based on solid thinking, careful research, and countless hours of hard work. All of which means nothing if you run out of money. You’ve got to look at your numbers from every angle, and make some intelligent strategic changes.
1. Know Your Cash Flow
Most owners of startups and small businesses have at least a fundamental grasp of the basic cash flows in their business. If you don’t have a massive background in finance, you’re not alone. The smart move is to build your knowledge and learn more as your business grows.
You need to be familiar with your full cash flow, taking into account every expenditure. You’ll have the power to tweak your priorities and develop a model that enhances your profit and minimises your outlay. Don’t hesitate to consult a professional.
2. Consultants are Useful
You can’t be good at everything. Recognise your strengths and come to terms with your weaknesses. In short, do the things you can do well, and find someone else to do the rest.
You don’t have to hire permanent staff members either. There are huge numbers of qualified freelancers with great references out there. Do the math and figure out what the best option is for you. This is definitely one area where spending a little cash can save you a significant amount of money in the long run.
3. Be Thrifty
Don’t spend money unnecessarily, and make sure that you have laid out your budget. You should expect fluctuations in your monthly spending and add this to your plan. The best case scenario doesn’t always happen as much as you’d like.
If you plan for the worst, you’ll have extra cash in the easier months. Turning this additional income back into your business is a great way to invest in your own growth. Take care of the bottom line, and you’ll have a much more stable business.