Being an entrepreneur can be very intimidating, especially if you have no financial management experience. If you’re about to embark on the exciting journey of starting your own business, we’re going to share some finance tips that will help to keep your accounts in the green.
Personal Finance
Many experts tell you to make sure you pay yourself whilst others tell you to sell-off insurance products. Rather than talk about either of these suggestions, we are going to touch on the possibility of student loan refinance. It’s not something many people think about but it is an effective way of boosting your capital with very little risk. Private lenders offer this option so be sure to talk to your provider and check the fine print before making a decision.
Maintain Your Credit Score
What most people do not realize is that business credit reference agencies often use the personal credit scores of the directorship of the business as part of the algorithm for how they will work out the credit score for the business. There’s no telling how big of an impact this plays in the final decision but it’s definitely something to keep in mind if you’re applying for credit. There are plenty of services out there that will give you the opportunity to boost or build your credit score, so take advantage of as many as possible, especially if your name is on the company registration documents.
Budgets
It would not be a list about money-management tips without a word on budgeting. Effective budgeting is key to a small or new business venture so be sure you start off on the right path. If you’re not too experienced in accounts, it’s best to hire a professional bookkeeper to keep track of your income and expenses. You’ll be so glad you did when the time comes to file your tax returns.
Emergency Fund
Consistent business is never guaranteed and the road to success is going to be a rocky one so what can you do to safeguard your business? One of the best things you can do is set up an emergency fund that you can fall back on should you need to. You most likely won’t be able to stash away a large amount of money and that’s fine. Even having a couple of hundred dollars in a separate account can be a huge help.
Planning is Key
Startups do not usually bounce back from financial challenges because they do not have a clear plan on how to overcome things like an increase in rent or excessive ad spending. Planning is key if you don’t want to fall at the first hurdle. Make sure your business plan is rock solid from the very beginning and get it checked over by a professional to ensure you have everything covered. The most important points to cover in a business plan include market analysis, sales and marketing strategies, competitive analysis and a clear set of objectives with dedicated timelines. How good your business plan is will be a reflection on how successful your business turns out to be.
