If you’re not good with numbers, trying to deal with your new business’s finances can be difficult. But it’s important that you focus your mind and find the right solutions to your financial problems.
Unfortunately, it usually takes a little money to start a business. There are lots of different ways in which you can source this money, so you need to be fully aware of all the options open to you. Firstly, there’s the possibility of getting a business loan from a bank. Nobody likes having to take out loans, but business loans help bring your business idea into reality. And if the idea is good, you’ll be able to pay back the loan in no time.
Entrepreneurs who don’t want to take this path often look for an investor. The investor will provide you with the money you need to get your business started in return for a percentage of your business. You have to weigh up the pros and cons of this kind of deal. It can help your business a lot to have an investor on your side to provide money and expertise to you, but giving up a percentage of your business isn’t ideal.
When you’re setting up your business, you need to clearly plan out where your money will come from. Every business should be looking to take advantage of as many different revenue streams as it possibly can. If there are ways to make extra money that you’re ignoring, your profits will be weakened, and in the long-term, that’s not good for your business. These revenue streams should be planned in advance, but keep your eyes open for new money-making opportunities.
So, what are the main streams of revenue for a startup? Of course, it depends on what your business does. But most businesses get their money from the clients and customers who use their products and services. And when a business grows bigger and becomes more successful, selling franchises of the business can be a good way to make money. There are also opportunities for merchandise, events and advertising so consider your options carefully.
Any business owner who has tried to look after the company accounts knows how confusing and frustrating it can be. It is possible to look after your own accounts though. If you have a good computer system and an understanding of the local tax laws, you’ll get probably pick it up quite quickly. You need to keep the books organised though. If you don’t do this, papers will get lost, and it will become impossible to keep things in order.
It is possible to have someone else do this for you though. Many entrepreneurs have a lot to do, so looking after the accounts is not something they want to be doing. Do your research and find a company that offers small business accounting services and let them look after things for you. You’ll then free up time to do other things.
Finances are never fun to deal with when you start a business, but if you ignore them, it won’t be long before the business falters.