7 Financial Tips For Entrepreneurs
Financial management is a key activity in any organization. It is a crucial part of starting and running a business, big or small. Good and effective management of finances makes the difference between business that continuously succeeds and the one that falls apart on the very first hurdle.
Here, are some proven financial tips that all start-ups should follow in order to grow and enhance their business: -
7 Financial Tips for Entrepreneur
1) Budgeting/ Set a Budget
The backbone for a successful start-up is budgeting. The income and the expenses of the business should be in alignment with the budget. A budget helps to keep a check on the costing and will flag an alert in case the actual numbers exceed the set budget.
2) As a Start-Up, Keep Your Fixed Expense in Limit
In the beginning keeping the expenses low is the keep to longevity. There is no need to invest big amount on the infrastructure to lure customer base.
With low fixed expenses, the capital saved can be put to use for further growth.
3) Manage Your Cash Flow
One of the major reasons for start-ups to fail is that they run out of money. Keep a proper track of what is going out and what is coming in. A proper team should be built to account the spending and the incomes. It doesn’t matter how good the model is if once’s you run out of cash you hit a brick in wall.
4) Customer Acquisition is the Key
Without customer, there is no business. With so many things going the core to acquire customer base should not be neglected. The growth of the business ultimately depends on the customer base.
Proper feedback, after sales services should be provided to maintain the customers and also to create a goodwill which will help in targeting new customer.
5) Statutory Compliances
Don’t forget to comply with all the statutory compliance. For hassle free business you should make sure that the statutory compliances are done within time to avoid notices from the concerned authorities. The non-compliance not only leads to loss of time and revenue but will also hamper the goodwill of the business.
6) Make Sure To Pay Your Self
Its is fine to reward yourself for the hard work and effort you put into the business. The compensation should be nominal to sustain your daily needs. There is no need to draw a hefty amount in the beginning, just make sure you pay yourself enough to live.
7) Develop Financial Goals
Rather than hitting a stone without a target it is better to develop goals. The goals can be yearly, monthly or even weekly which will help to track the growth and also make adjustments accordingly. Achieving small goals will give confidence that will help to fulfil future endeavours.
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