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Wednesday, October 12, 2016

4 tips for handling your startup's finance

By Dan Radak

Dealing with finances of your small business can be quite difficult. In most cases there won’t be enough money to hire a financial adviser who can help you make sure that every nickel is spent wisely. Because of that, you have to be informed about all the financial aspects when it comes to running a small business. Here are 4 tips that will help you handle your startup’s finances properly. Make sure you check them all out.

Calculate your cash flow

Your cash-flow is something that keeps your business going. Therefore, having a constant influx of money should always be your top priority. The best way to do this is to maintain and calculate your current cash flow and make any future decisions according to it. Even though this can be difficult, it’s important that your cash projection is done properly. Without this, even some of the biggest businesses in the world wouldn’t be able to remain competitive in the market. When making cash-flow projections you shouldn’t consider only the past sales and revenue statistics, but you should always try to make a projection for the future, as well.

Calculate your employee’s payroll

Of course, when starting a small business, you won’t be able to do everything by yourself. Therefore, hiring at least a few employees is an absolute must. When it comes to finances, it’s very important that you keep track of your payroll expenses. 

There are many things you should have in mind when calculating your employees’ payroll. Make sure you get familiar with processes such as retirement fund financing, local tax insurance requirements and automatic deposit. Only by being familiar with processes like this will you be able to properly handle your startup’s finances in the future.

Advertise your startup wisely

Small business owners have to be very careful about advertising. Since your budget is not going to be large at the beginning, it’s very important that you know how much income you generate from every single dollar you invest into advertising. This includes keeping track of your investments into flyers, billboards, radio commercials and TV commercials. Without knowing how much money you invested into all of these, you won’t be able to know whether your marketing campaign was successful. Luckily, today there are many different ways you can keep track of your marketing campaign. Google analytics and Facebook Ads Insight are just some of the services you might find quite helpful.

Get debtors to pay up

Another important thing you’ll have to do if you want to handle your startup’s finances in the right way is collect all of your business debts. If you allow your clients or business partners to owe you money for a long time, chances are they’ll be reluctant to pay up their debts. 

Not collecting all debts can be very serious and it could even ruin your business. Sometimes, sending e-mails and letters to your debtors may just not be enough. Luckily, today there are companies who can collect all the business debts for you. If your business is based in the most populous city of Australia, there are experts in debt collection in Sydney you can turn to.

The more you know about finances the better. Only by handling your finances properly will you be able to keep your business going. Just make sure you stay on top all of the trends in the business world and keep your startup up-to-date.

About the authorDanRadak is a marketing professional with ten years of experience. He is a coauthor on several websites and regular contributor to BizzMark Blog. Currently, he is working with a number of companies in the field of digital marketing, closely collaborating with a couple of e-commerce companies.

Images: Author owned and licensed