We applaud the ingenuity and entrepreneurial spirit it takes to become a startup owner. Your drive and ambition have helped you launch the business of your dreams, which means you should be proud of yourself.
Now that you’ve taken the plunge, it’s time to step back and focus on budgeting and planning. It might not be as fun as the fancy snacks and office puppies that first inspired you to start your venture, but it’s an important part of running a successful business.
Read on for our top five budgeting and planning tips for startup owners like you!
#1 Take Control of Your Cash Flow
We’re going to be blunt—you really, really don’t want to run out of money. Now that we’ve acknowledged that unfortunate truth, let’s talk about how to avoid your bank account going into the red. It all comes down to one word—accounting.
That lunch meeting you expensed last week? Track it. Those new standing desks you purchased for your team? Track it. Every dime that enters and leaves your business needs to be accounted for. Sometimes, it’s easy to lose yourself in the excitement (when we’re excited, we can overspend) of running a successful business.
That’s why maintaining a healthy cash flow is paramount. You should have your finger on the pulse of your bank account at all times.
#2 Have a Plan B (…and C)
We’re not trying to rain on your parade, but you need to plan for the worst. Even if you wholeheartedly follow the advice above, life is full of surprises. When you run into a financial emergency, it’s important to have resources to lean on.
If things take a turn for the worst (and we hope they don’t), be sure to have the following ready:
- Emergency savings
- Alternative sources of income
- A robust retirement plan
We hope you never need to rely on your savings to push through a rough patch, but if you hit a bump in the road, you’ll be glad you prepared. Plus, planning for the worst doesn’t mean you have to ditch your positive attitude.
#3 It Takes a Village
Startup owners are known for their can-do mindsets, but sometimes, you need help. Thankfully, there are a variety of financial professionals who can help create structures and safeguards for your business. From tax planning to investment services, the financial industry exists for a reason.
Consider employing someone to take a broad look at your finances, help you create your annual projections, and outline a tax plan.
#4 Your Time is Money
We’re all for being thrifty, but part of budgeting and planning successfully is knowing the value of your time.
As you weigh which projects are worth tackling, what equipment is worth investing in, or how much spend you’ll need for a new employee, it’s important to keep your value as the business owner in the back of your mind. You have a startup to run, and letting small tasks bog you down is going to cost you money later on.
#5 Never Stop Looking Forward
Part of the beauty of a startup is the fact that it’s creative, innovative, and new. But your startup won’t be the new kid on the block forever, meaning you need to think ahead. Below are a few useful questions to consider as you start to plan your company’s financial future:
- In an ideal world, how many people do you want to employ in five years?
- Do you want your company to be local, national, or international?
- Do you want to expand your business to include other goods or services?
Let’s Get Your Startup Budget Started
Now that you know a few budgeting and planning essentials, it’s time to take action. We know just how much your business means to you, and by incorporating the tips above into your financial strategy, you’ll be setting yourself up for long-term success.
