We all know that there’s no shortcut to success, and there’s no magic formula that can create the “perfect” startup. However, there are a few factors that can rank high in importance on of those being finance ! Here are 4 tips for start ups on their finances;
Stop Procrastinating and Sell
Seem self-explanatory but a lot of start up’s forget this step!
If you are getting help from a government agency, family and friends or investors, there can be a tendency to build the brand, company or product/service instead of trying to sell!
Before you have the perfect product market fit you can start selling. Getting a good sales process and sales person can be vital to any business.
Business need money to survive and grow and you can also learn a lot more from paying customers than research.
So plan, sell and continue to plan!
Cash Flow Vs Cash Loss = Business Plan
One plan that is important before you start is a business plan with a projected cash flow.
A projected cash flow can estimate what you might gain (your turnover, profit) and what you can lose (your investment). The only thing you can be certain of is what you can lose. No one knows for sure whether they will make 1 or 1 million and in what time span.
A business plan can help you to be more certain about your position. A business plan can map out your business; how to make sales and avoid loss. What marketing and sales will you carry out, what’s the expected cost and return of this? Does this match the cash flow? Etc. all of which can contribute to the success of your business.
A projected cash flow and business plan are working documents. As you move forward in business look at back at this monthly and see if you are hitting the mark, and if not what can you do to change this?
Start with a business plan!
Warren Buffet one of the most successful investors in the world know all about thinking big but spending small. He lives a lifestyle that hasn’t changed much since before he before he made his billions, residing in the same house in Omaha, Nebraska, that he bought in 1958 for $31,500. He is well known for his simple tastes, including McDonald’s hamburgers and cherry Coke, and his disdain for technology, including computers and luxury cars.
What can we learn from this? Think big but spend small – don’t spend what you don’t have wait before you hire someone, do marketing if you are sure of the return, aim high in a smart way. Be naïve enough to take that leap of faith, and smart enough to learn fast along the way.
Sales are King!
When you starting a business you come across all starts of problems, investors on your back, employee problems, juggling too many balls, lack of sleep etc. ! Sales is the answer…really! Sales your investors shut up, your cash position improves, your team can smile again, and you’ll find the tools and the resources to fix other problems. Having sales means you exist.
So now go out there and sell! Spread the word and spread your passion.
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