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5 Financial Tips For Startup Entrepreneurs

Building a company from the ground up can involve some intense planning and execution, especially in terms of financial planning. Although it may seem like a huge hurdle for new startup entrepreneurs, there are some cool financial tips and tricks that you can use in order to ensure that the financial planning in your new company is all smooth sailing.

#1 Manage Your Cash Flow

Startups have the highest potential to fail when the cash flow is not adequately planned. Be sure to know the exact ins and outs of cash in your organization and document them as transparently and accurately as possible. Establish a working budget, with near-accurate costs and expenditure and you’d be on your way to successful financial planning in terms of company cash.

#2 Limit Your Fixed Expenses

This is something that you should be doing early on. At the first few years of your startup, you don’t need to be having your office suite in a swanky office building right in the heart of the city, where the costs are high. Try to keep costs of rent and general amenities low so that you’ll have more to spend where the business needs it.

#3 Customer Acquisition Is Key

Spend all your effort and energy on getting as many customers as you can for your business. Exhaust every relevant marketing option and communication channels in order to reach out to your potential buyers or clients. Customers are the main key to gaining a profit so be sure to try out every available option there is for your business to reach out to your target market and audience.

#4 Prepare For The Worst

As a business that’s just starting up, always have a portion of your cash saved in case of a rainy day. Lots of things can go wrong during your first few years and it’s crucial for you to have a wad of cash on standby for any damage control that you may have to do. Make some short-term investments that can bring you some extra cash and save it up to create an emergency fund for your business.

#5 Establish Solid Financial Goals

When you’re just starting out, you may be on a full energy drive to reach for the stars. However, it is always best to set feasible and attainable goals. Start small, you don’t really need to be aiming to run while still learning to walk. Look at your sales trends, expenditure and costs of any future planning and try to set reasonable targets for you and your team to work towards.

These are just some of the few simple financial tips to keep your financial planning in check in an environment where things are fast moving and growing exponentially. Startup entrepreneurs definitely do not have things easy but proper financial planning and some elbow grease can definitely transform your startup into a full-fledged business fairly easily. Good luck, all you budding startup entrepreneurs!

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How To Keep Your Business Costs Low

When operating a business, it can be quite a challenge to reduce operating expenses and keep the business costs low. In an unpredictable financial state, what with uncertain internal and foreign affairs, every penny makes a difference to your business and what better way to save than by finding ways to cut costs in business, especially the costs that are non-essential to your business operations.

But, most business owners are at a loss when it comes to cutting costs within their businesses. They face difficulty trying to decide which costs are essential and which ones they can axe off, without jeopardizing their daily operations. So, we have put together a few tips to help you decide on the best ways to keep your business costs low without affecting your bottom line.

#1 Save On Office Supplies

Office supply vendors are not your only option when it comes to office supplies. You can head over to stores that sell in bulk like Walmart or Costco and get your office supplies for a fraction of the costs that you pay to your local office supply vendor.

#2 Trim Production Costs

Production costs are where most businesses think they can’t optimize but, there are lots of small details in the process of production that you can merge with other steps and save on raw materials and labor. Aside from that, you can also make some money from selling off your recyclable waste to companies that use recyclable materials as their main raw material source.

#3 Readjust Your Financial Spending

Are you spending a ton on financial planning and insurances for your business? Look for insurances with the most competitive prices and rates and see if your current provider can match those rates. Also, consolidate any insurance policies or bank accounts that you have for your business so that the fees and charges will also be consolidates.

#4 Virtual Technology Is Your Friend

Are your top management located in different countries and you’re having difficulty arranging for their flights back for management meetings? Arrange virtual meetings via Skype or Google Hangouts and cut all the flight expenses and hassle. Also, use cloud storage for documents and memos so that you don’t have to spend as much on paper and writing utensils.

#5 Opt For Free Marketing Tools

Social media is the new marketing strategy and the best part is, it doesn’t cost you a dime to get your business started with its own Facebook page or business Instagram account. Carefully curate your content around your audience and soon enough, you wouldn’t even need traditional marketing.

#6 Leverage The Human Power

Networking is an extremely powerful thing. Meet with more people and get to know your clients personally. Once they get a feel for who you really are and how good your business is, you can expect them to send one or two of their network connections your way. You can do the same with your customers as well. Reward your customers for each referral that they make and watch your leads grow exponentially.

#7 Find Your Niche

Instead of catering to the whole wide world, find your target market and focus all your marketing and business strategies to provide solutions to that particular niche. Not only will your business be providing much higher quality service or products for this set of people, you would also be significantly lowering your marketing and operational costs.

#8 Monetize Extra Space

Rent out any empty spaces you may have in your production house and use that as a source of income. There is really no sense in leaving a whole office space empty when sub-letting the space would bring you additional income.

Keeping business costs low can be quite a challenge, but with the right moves you will be on your way to reducing your operational costs and cutting out all the unwanted expenses in your business. Optimize every process to use lesser manpower and raw material and consolidate wherever you can. Improvement is continuous and if you do it as often, you may succeed in keeping your business costs the lowest possible.