A famous saying by Garrett Camp, Co-Founder of Uber, “Stay self-funded as long as possible” reveals one of the biggest mantra for success of any startup. Success doesn’t hit by chance. Every penny, silver and dollar saved by startup owners feed its success chances.
Undoubtedly, saving money nurtures the growth of a startup. But, it happens often that Small business owners lose the hold on finances. 8 out of ten businesses collapse due to cash shortage. Don’t let yourself fall beside these millions of people tussling to keep their heads above the water. Check out these few tips that can save your business from becoming a cash casualty:
Avoid Money Pitfalls:
It’s not necessary to invest big for lavish office set-up. Look out for alternatives of expensive filing cabinets, new furniture or other fixtures. This can help to build war chest of emergency fund - be it venture capital or cash to cover the shortfalls. Auctioneers and used-office furniture stores can offer big savings on furniture and related equipment. Tracking the cash-flow, maintaining a spreadsheet to organize receivable and payables, analyzing monthly expenditures are some other means to take better control over finances.
Watch Your Investment Strategy:
Monitor your spending pattern. Spend only on business strategy which helps to create more customers and generates revenue. Employees are really good at finding reasons to spend. They constantly offer suggestions for improvements and additions. Perform market research on every business idea proposed by employees. Decide wisely before spending your hard-earned capital on propositions and suggestions made by employees.
Shun Plastic Money Dependency:
One of the toughest and daunting tasks is to raise the start-up capital. An innovative idea is not sufficient to build a startup. Solid operating capital catches the eye of investors quickly. But, seeking early stage survival with plastic money sounds like a no-brainer. Credit cards carry high interest rates and annual fees. Whether through own funding ora small business loan, maintaining a healthy store of operating capital can help to escape the credit card debt.
Take the leverage of Free Advertising:
The advertising means that cost an arm and a leg may not necessarily help in promoting your business. You can think beyond billboards to promote your business. Cost-free advertising channels such as starting a blog, social media bookmarking, online directories, article marketing, press releases are some of the excellent ways to widespread your business andfoster the success rate of your business quickly. .
Prepare Tax Planning Structure Meticulously:
In order to escape from a head-long struggle during the tax filing season, it’s significantly easier to formulate a plan four months in advance. Failing to frame tax planning structure carefully can make you pay heavy tax penalty to the IRS. Compile the entire list of income sources such as employers, mutual funds, banks and other list of deductions required to file tax return appropriately. E-filing of the tax returns can fasten the process. Also, Tax advisor can help in simplifying the tax-filing process.
Hire Only Based On Needs:
Reading discussions and getting ideas from the online special forums in sales, marketing and other areas can help to find best talent cost-free. Withoutevaluating the need for hiring can lead to dilution of the operating funds. Hiring handful of interns can be immensely profitable for the business as they extinguish the need for hiring the expensive employees. In fact, some of the interns that are just looking forward to work in exchange for experience can add great benefits to your business. Also, hiring someone on consulting basis for few hours can be an excellent idea to drive business smoothly and cost-effectively.
The Gist of It:
It’s not a simple task to run a new startup on shoe-string budget. If you want to extract the most out of every dollar then you need to shear the corners where you can. Creating a financial plan and preparing the roadmap of your budget can let you prepare measurable set-up of shortfalls. Implementing the tips mentioned above can help you gather much wanted funding to make your startup get on the path to success faster.
About the guest author:
Shraddha Tewari (@tewarishraddha1.), a skilled and accomplished ‘Editor’ is formally associated with AceCloudHosting that offers services related to QuickBooks Cloud. She possesses diverse professional experience in digital marketing. Her strong interest in reading and writing about technology, cloud computing and latest software developments enables her to develop informative and effective technology oriented content.