Trying to run your career and stay on top of your finances is difficult at the best of times. Your office is probably buried underneath a pile of spreadsheets, half of which you don’t know what even relate to. And even though you started the month with good intentions, as usual, your spending habits have gone completely haywire yet again. But what happens if you are in the midst of setting up your own business, yet your finances seem to be the one thing that is holding you back? This is a crucial time for any fledgling entrepreneur, with investments needing to be made and usually, a fair amount of capital is required to get things off the ground. But if your personal expenditure is leaking into your business budget, you could have a problem on your hands. It is during this pivotal time that many people with a business idea simply give up, as they can’t seem to stretch their money between their living costs and the costs involved in the launch of a business. But, contrary to popular belief, it IS possible to have your cake and eat it; you just need to be very savvy and mindful about the way in which you spend. Here are a few ideas relating to how you can focus your finances when you are in the middle of setting up your company so that you can get your business off the ground as soon as possible.
Have all your costings in order
You would be surprised at a number of people who attempt to start a business without any financial organization whatsoever. It doesn’t mean that you need to have all the skills of a well-seasoned accountant, or that you need to be some mathematics whizz. But it does help if you know exactly how much things are going to cost when it comes to your business – or at least a rough idea. If you’re not sure, always round the figure up, rather than down. That way, the worst that can happen is that you end up with more disposable cash than you though, rather than the other way around. If you do have trouble keeping your incomings and outgoings in order, read an informative article such as http://www.businessnewsdaily.com/8039-find-small-business-accountant.html which tells you all you need to know about choosing an accountant. Handing the responsibility over to someone else also frees up much of your time so that you can focus on the more creative internal aspects of your business plan.
Don’t ‘dip into’ your business savings
If you’re in the middle of setting up a company, chances are you have a nice little pot of cash to do so with. This could be years upon years of personal savings, or it could be something that came to you by chance, such as inheritance. But whatever it is, one thing is for sure: you’ll probably find it tempting to dip into this money when you need something for your personal life. If it’s an emergency, this is understandable. But in any other situation, you could be playing with fire. Once you’ve done it once, your brain will subconsciously remove the stigma from it, and you will be tempted to do it again. Eventually, it could become a habit, and before you know it that fruitful little money pot has all but disappeared. This can prove catastrophic for your business, so make a point of keeping your personal finances and your business finances well away from each other. If you need to, open separate bank accounts to make things easier to manage. There are also certain accounts with specific interest rates that are more suited for business owners, so speak to your local bank about what they can offer you.
Cut back in other areas of your life
Constant frivolous spending is something far too many of us trivialize these days. Think about it: do you buy something every time you leave the house? Do you buy everything in cash, or just put it on your bank card? Do you ever check your bank statement to see where your money has gone over the last month? All these questions are vital to working out how you spend in your everyday life. If your business fund is lacking, consider instead how you can cut back in other areas of your life. That doesn’t mean to say, however, that you need to give up the things you love. Sites such as https://www.couponsherpa.com/ allow you to view and use online coupons for the stores and brands you love, so it can be worth keeping an eye on things like this. Also, make a point of cutting out any unnecessary expenditure – such as that magazine subscription you haven’t even looked at for months. Less money wasted = more money to spend on your exciting project.
Look for an investor
Unless you were lucky enough to come into a large amount of money in one go, you have probably considered the idea of taking on an investor. An investor can easily make all your financial worries regarding your business go away in one magic transaction. But, that isn’t the only reason to consider one. Investors can also bring a number of other benefits to your startup, including a good range of contacts (vital for when you start to expand) and the ability to hold you to account. When someone else has put their money into your idea, you have someone else who is reliant on you, so it will motivate you, even more, to make the business work. Make sure your business is attractive to investors by having a clear plan, realistic goals and a great pitch at the heart of it. Trying to persuade someone to put their cash into your idea can be daunting, but find the investor that’s right for you and it can take your company from strength to strength.
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