Posted on Saturday 28 April 2018
As the world of work changes, more and more people are taking steps to go into business for themselves. Sometimes this is done via freelancing, the gig economy, or simply by launching a startup company.
However, making the right moves when launching a startup business is absolutely imperative and can be the determining factor in success or failure. One of the biggest and most common mistakes made by aspiring entrepreneurs is the failure to engage in full financial preparation.
Thankfully, there are a series of steps that each person can take as they work to create or get their startup business off the ground. By the way, these tips apply to all including business savvy teenagers.
According to reports from Inc, having an understanding of the financial section of a business plan is paramount for any startup. This includes taking note of matters such as accounting, cash flows, profits/losses, etc. Essentially, the purpose of a business plan is to serve as a guide for how the entrepreneur will run his or her own business.
Without a business plan, it is impossible to assess the structure of the startup and determine what is needed in order to turn it into a success. Unfortunately, many entrepreneurs who are new to the world of business and startups remain unaware of how to write business plans. In these particular cases or situations, hiring a professional or accountant to help one come up with a business plan can be wise. Even though the added fee of doing so may seem initially scary, it is a worthy investment.
The fact of the matter is that anyone who is serious about success and launching their startup needs to have a clearcut business plan. It is the only way. Going forth without one is a virtual guarantee for disaster. A business plan will also help you avoid any poor money management.
Financial planning for any startup business is all well and good; however, management of the day-to-day operations is equally as critical. As noted by Startup Grind, the ins and outs of accounting play a very big role in whether or not one succeeds or fails in business.
Thankfully, there are a variety of apps that can help with day-to-day tasks such as creating invoices and estimates, tracking transactions, generating receipts, managing payroll, pitching to investors, and more. The list, quite literally, goes on and on. Some of the available apps to manage the aforementioned tasks (and others) include PlanGuru, Wave, FileThis, and CalcXML.
The intricate and required financial planning that comes with building a startup business should never serve as a deterrent or a cause of discouragement. While getting starting as an entrepreneur can be difficult in the beginning, the merits and rewards which come later are indescribable and immense. As automation and artificial intelligence begin to emerge into society, business ownership and self-employment will be some of the most lucrative ways to build a life and ensure financial and job security.
Putting in the work now ensures that entrepreneurs are able to reap the benefits later. Also it's always a good idea to talk to a VC. Someone who already knows the ropes. Plus if you can bootstrap your business instead of getting a loan, then you may be better off. All depends on the type of business you want to start and your plan.