Starting your own business is a daunting process, not only are you putting all of your time and effort into it, but you’ve probably invested all of your money into making it work.
Starting a business is a huge commitment and financial mistakes can cost you everything. Here at Business Century, we’ve come together to help you make the right financial decisions in order to help you and your business go further.
Take a look at some of our most treasured financial business advice and let us know if you have any of your own business advice you’d like to share with us at Business Century.
Separate Business & Personal
Rule number one is to always keep your personal and business finances separate.
If not, this can become a very grey area and you’ll constantly be dipping into your business funds and before you know it you won’t know where the line is.
Not only this but when it comes to tax season, it’s a nightmare to try and sort.
Manage Cashflow Closely
Many start-up businesses fail for an array of reasons but the most common is due to running out of money.
You need to know where every single pound is coming from and where every single pound is going. It may seem pedantic but it’s vital if you want to be business smart.
Remain optimistic but prepare for the worst
No one knows what’s going to happen so do yourself a favour and don’t stress over what you can’t control.
This doesn’t mean be reckless, but it does mean you should proceed with a bit of caution and always evaluate every spend.
Focus on Customer Acquisition
Without customers, your business will fail, so make your first priority getting the customers in.
Work hard on targeting different customers and define how you get hold of them, give yourself a marketing budget, set up social channels and get your friends to spread the word as these will be your main customer traction, especially in the beginning so exploit these on a tight a budget as possible until you can really afford it.
Those who start up their own business can go one of two ways, either they spend all they make leaving nothing to reinvest into the business or they don’t take a penny out to pay themselves and end up not enjoying the benefits of being a business owner.
Make sure you give yourself enough to live comfortably and focus on building your business, and then when you eliminate personal financial stress, the discipline will allow you to stay ultra-focused.
Set Financial Goals
Everyone wants to own a million pound company but you need to be realistic and set yourself smaller goals to help you reach that million.
These smaller goals can be weekly, monthly or even daily depending on how strict you want to be. This will allow you to stay on track and give you a good insight into everything that is going on financially.
So there you have some of our top financial business tips, let us know if you have any financial advice for business owners and get in touch today.