Starting a new business venture is exciting, but it’s also stressful. Especially if you’ve got money on your mind.
You want to give your startup the best chance at success, and you can’t do that without ensuring it will make money. Although you don’t have complete control over whether your business will ultimately be successful or not, you can give your startup the best chance possible. You just have to make sure you follow these money tips.
Invest in the right software from the Very Beginning
Technology has completely changed how we do business. You can send an email in an instant and you can place an order online, but it has also changed how companies function. No longer do you have to hand-write checks and review handwritten logs. Today, you can use software to take a deeper dive into your finances.
Choose easy expense tracking software from the very beginning. Don’t put it off until your company gets a little bigger. It really is one of the best ways to make tracking expenses a lot easier.
Staff members can quickly and easily log their time, so you can see how much they need to be reimbursed, and real-time data means you can process bills in an instant. This kind of program is more accurate, and it will definitely save you a lot of time. That’s important when time is money!
It’s normal for businesses to borrow money, especially at the very beginning, but even well-established startups may need a little extra cash every now and then. Although it is true that you can go to the bank to ask for a loan, there are a lot more options out there.
There are many ways to borrow money, and some of them have much lower interest rates. A few examples include:
- Peer-to-peer lending is a great way to get cash fast.
- Crowdfunding allows you to raise money that doesn’t need to be paid back.
- Factoring is a good option if your business deals with slow-paying customers.
Always be on the lookout to reduce expenses
It seems obvious that you should look for ways to reduce expenses, but as you get into the nitty-gritty of day-to-day life, you’ll soon stop keeping such a close eye on your fixed expenses. Before you know it, months, and even years, can pass before you look for new ways to save. That can end up costing you hundreds or thousands of dollars!
Make reducing expenses part of your regular routine. A few ideas to get you started include:
- Compare insurance providers every year or two to see if you can find a better deal.
- Negotiate with vendors before confirming a contract and get quotes from other vendors.
- Consider leasing necessary equipment instead of buying it.
- Consider moving into a more affordable location.
- Buy used furniture and equipment.
- Consider bartering with other area businesses.
Keep a close Eye on money in and out
It’s easy to stop looking for ways to save money. It’s also easy to get caught up in regular business operations without paying attention to how much money you’re spending compared to how much money you’re making. It’s important to keep a close eye on this information if you want to keep your startup on track.
It’s normal for startups to operate at a deficit for the first year or two, but you should have a plan in place for exactly how and when you’ll be profitable. Keep an eye on your progress weekly, monthly, and at the very least, yearly, so you can make adjustments to keep your business afloat.
Build an emergency fund
Life happens. Investors pull out, employees quit, and the market can change. Many of these things aren’t in your control, but you’ll feel like you have a lot more control over the success of your business if you take the time to build an emergency fund.
Don’t think you have to have an emergency fund with tens of thousands of dollars for it to matter. Every little bit counts! Even saving up a few thousand dollars can help you complete a company car repair or a water heater replacement in the office without having to charge it to a credit card.
It is extremely important for you to keep an eye on money. With these tips, you can create new habits that will help you save money, and keep your business successful, in the long run.