The new year is a great time to approach your start-up business with a clear head and think about how you are going to improve. One of the most important factors for any business is the state of its finances. So, what do you need to do to improve your start-up’s finances and ensure you’re on the road to success? Here are three things for you to consider.
Is your cash flow healthy?
Do you have enough money to pay bills, suppliers and other expenses when you need to? If not, you may have poor cash flow and this can sometimes spell the end for a business. Planning for a rainy day can help you to mitigate the risks to your cash flow, so consider what your expenses are – both your regular payments and the unexpected expenses that may crop up in the future. A business plan can help you to consider the risks to your cash flow and plan accordingly.
Do you need an accountant?
Accountants can be costly, and when you’re starting out you don’t want to spend too much money on looking after your finances. Consider online accountancy services or cheap programs that will help you keep track of everything yourself without spending too much on services you might not need yet.
Of course, if your company is larger and can afford an accountant, this service can be priceless and can also take a weight off your shoulders, meaning you can get on with running your business.
How can you tighten up your spending?
Spending too much on things that might not be beneficial to your business? It’s easy to get a little carried away with the excitement of starting a new business. While things like premises, business cards and IT equipment may all be essential, there are often ways you can save money. For example, you might need a computer for your business, but does it need to be top of the range? You may also like to consider how you finance your business equipment. For example, leasing or hire purchase may turn out to be a better deal for you than buying your own equipment, depending on your circumstances. Consider all of your options before you take the plunge.
Your business plan could help you to reduce your spending. Take a look at your outgoings and see if everything is essential, and whether your spending is in line with your goals. If you’re spending money on something that doesn’t tie in with your original plans, consider whether it’s necessary. It might be that your business plan needs updating in order to reflect some new goals or a new direction your business is taking. An up to date business plan can help you to make important financial decisions.
If you would like any assistance with writing a business plan that will help straighten out your finances and make a success of your start up, get in touch with cbm using the form on the right or call 01604 420 420.