10 Personal Finance Tips for Startup Business

1. 10 Personal Finance Tips for Startup Business Finance and start-ups have a unique relationship. They are like two persons of opposite nature who take a lot of time to settle and stay together. Since start- ups have to start from scratch, they are in need of money constantly. But pumping money in a new business is not that easy as financial institutions seem to be a little less preferential in giving away loans to start-ups. Thus, it is with the help of personal finance options that the business owners keep the ball rolling. Finance tips for Startups Managing finances is not that easy for start-ups. Reason: The start-up owners may be good at their business’ unique selling point and may not always be good at maintaining books. Only a start-up owner knows how difficult it is to do all the things with limited or say highly limited resources. There is no rule of thumb as to how start-ups should manage their finances but there are some basic principles of business that also apply to start-ups. It is these principles that small business owners should follow in order to ensure that they do not run out of finance resources and jeopardize their venture. Here are top ten finance advice for startup businesses #10 Keep Recurring Expenses Ultra-Low Believe or not recurring expenses are the worst of a kind. Although, these are inevitable, monthly expenses such as office expenses, electricity, water and other bills etc. become a liability if financial condition of the start-up is not sound. The best way to deal with this is to keep them at ultra-low level. Audit monthly expenses on a regular basis

2. and condition them, try to minimize them and employ such means that liabilities remain less. For example, one can install solar power system and curtail the monthly electricity bill drastically. On the other hand, office premises should have natural lighting during day so that there is no need of artificial lighting. Efficient star rated equipment should be used. #9 You Deserve to Be Paid, Don’t Ignore Your Contribution In a start-up, it is the owner who is the person who takes care of most of the operations, sometimes it is a well-structured team that shares the workload. In the earlier case or the latter, the owner who should not ignore his/her contribution and should receive pay regularly. This not only ensures that a discipline is maintained in the institution but also gives a sense of satisfaction and satiates the mind that he/she is getting something in return for the immense contribution. #8 Play Fairly, Be Candid with Your Investors and Lenders It is always better to be honest and not to hold back vital information about your business at the time of dealing with investors or lenders. Hiding facts and financial condition could dent the whole process and you might not be able to attract investments. Besides, if a small business cheats once, the word spreads fact and that company remains tagged always. Don’t forget that investors and lenders do a lot of homework and background check before they finally sit across the table with the company. #7 Look Out for the First Customer & then the second and third… It takes time to get the first customer as people in the business industry prefer the already established institutions. But it is not the case the there is no one in the industry who gives preference to the new start-ups. Thus, if you have not allotted funds for marketing and finding the first customers and more, then keeping some money for this purpose would be the best thing to do. #6 Employees are assets, keep them happy with benefits Employees make a company; it is the hard work of each of them that pays off in the long run and makes any company successful. Keeping the employees happy. It takes only a little effort and money to make them happy. A happy employee can always walk an extra mile for the company. #5 Keep Track of your Income and Expenses It is not advisable to be reckless in spending especially when you are a start-up. On the other hand, it is also not advisable to forget entirely about earning. Always strike a balance between what you get and what you spend. A constant watch on the books could be revealing and timely action in curtailing expenses or strengthening efforts to get more finances could save a lot of trouble for the start-up. #4 Keep Goals and Milestones in sight always…

3. Efficient financial management is a step towards the greater goal of the start- up. However, overstepping or doing beyond capacity could highly impact the institution. Thus, small business owner’s financial advice suggests to keep the goals in mind and taking steps forward as per the current finances and capacities. #3 Take Cash Flow Management Lessons Not all start-up owners are good at finances and their directions about doing some operations could be financially detrimental to the institutions in the long run. Thus, as per financial tips for new business take money- earning, money- saving and money-spending tips before or after you step into the shoes of a start-up owner. #2 Keep Yourself Prepared Always… Adversity never comes alone and it strikes unpronounced almost always. Thus, it is wise to be prepared for any unwanted situation related to finances. Do it what ancestors suggest. Keep some money for the bad days. Natural calamity, financial meltdown, slump, war, or situations like pandemic could strike anywhere anytime. #1 Time is the key to unlock success and earning In the modern times, it is time or say the right action at the right time is the key to success. For example, a start-up dealing in consumer goods or say electronic equipment must evolve constantly and adapt itself to the current demand. Thus, a start-up manufacturing wall clocks should introduce designer clocks, digital clocks and other clocks based on consumer demand and trends. If time is respected and action is taken at the right time, no one can stop the start-up from attaining success. However, those start-ups which stick to their traditional or not so in-trend product or services often lose money in the long run. Thus, spend on the right thing at the right time in the right amount.