Building your Finances in a new business startup
In the past few years, business Startups have been springing up here and there, with many people being encouraged to go into business.
However, it is one thing to have a business idea and start up the process, it is a different ball entirely making sure the start-up business doesn’t go under.
According to research, the first 5 years of a new business startup is always a turbulent period which is majorly due to finances.
Many start-up businesses, which died off or winds up in the first five years went down due to the poor maintenance culture and bad management skills of the business owner.
Now, one of the areas we will be looking at Today is the Financial areas that concern a business startup.
In the way the blood is what keeps the body running, money is the blood that keeps a business running, once a business is having liquidity problem then the business is prone to fail and crumble.
In order to be able to manage a business start-up finances effectively then the business owner must be at least averagely grounded in accounting or bookkeeping practices.
But should the business owner not have an iota knowledge of accounting, it will be in his best interest to employ the service of a professional.
Depending on the capital base of the business, the owner can go for a full time or part time accounting practitioner.
To build stable finance for a new business start-up, the business owners must put the following into consideration,
1. Have a separate bank account for your business:
One is prone to fall into bad spending habit if money is with one as it takes a lot of self-discipline and restraint to curtail.
As a new business owner, it is advisable to have a separate bank account where you pay in your cash on a daily or weekly or monthly basis depending on the size of your cash inflow.
2. Have a budget:
for a successful financial startup, you must have a budget which will serve as a control on your spending and expected income.
you can also read: how to make money from home
3. Keep a financial record of all business transactions:
this is another important area to take into consideration, many new startups operate on the impulse of the owner once they do not have adequate knowledge before embarking on the business.
You can make do of this for today, while you stay on with us as we bring more business-worthy contents.