Have you started your own business or have an idea that could make a real difference to the industry?
“Almost everything worthwhile carries with it some sort of risk, whether it’s starting a new business, whether it’s leaving home, whether it’s getting married, or whether it’s flying into space.” – Astronaut, Chris Hadfield
With a new business, make sure you’re the right side of the dividing line with sufficient financial resources. Here are GRENKE’s top 5 tips;
1. Cash flow
Cash flow can make or break any company. New businesses are susceptible to financial squeezes and lack of capital when they need it most. Invest wisely and ensure your business has the financial flexibility it needs to keep cash flow in the business. Have you considered your starting costs? The entrepreneur share a starting costs calculator.
2. Create a business budget
Planning a business budget helps to prepare for the future, reduce risks and project cash flow. There are many resources to help you build your business budget. Here’s an example shared by Patriot.
3. Track and monitor your finances
Whether it’s the investment of core software, staffing or equipment costs, monitoring and having a handle of all your outgoings is key. So you can plan for the known costs and have a buffer for the unexpected.
4. Time vs money
You may experience delays in your customers paying what they owe at times when you need capital. You don’t want to waste time on collections, writing letters and taking care of debtor invoices. Invoice financing offers a payment within 24 hours, allowing you to concentrate entirely on the business.
5. Consider other financing methods
Once your business is established and ready to make the next move, there may be need for new equipment, software or better security to protect your investments. There are lots of ways of procuring things that you need for your day-to-day work. Buying them is not always the best way. With business equipment leasing you have the financial flexibility, to have monthly planned instalments, so you can free up capital for staffing costs, rent and other necessities.
Build your business idea on sound financing. GRENKE is the experienced specialist for financial consulting and support, allowing you to focus on building your company. Speak to your local branch today.