When you are starting a new business you have a million and one things to think about. As a new business owner, many of the issues you will need to tackle, will be completely unfamiliar to you.
With so much to do, you will need to learn quickly. If the financial side of the business isn’t your strong point, here are 10 tips from ByteStart to help you stay on top of your business finance.
1. If you want to attract investors (or even to secure a bank loan), you will need a realistic and well presented business plan.
2. Don’t pay for your bank facility – most banks offer up to 2 years’ free business banking to new businesses.
3. Late payment is a problem which affects most small businesses. Don’t let late paying clients drag your business down.
4. Consider invoice finance and factoring as ways to free up the value of your invoices and keep your cash flowing.
5. Research sources of finance such as business grants and Government incentives, such as the new Enterprise Zones.
6. Consider business angels as possible investors in return for a stake, and just as importantly – expertise.
7. Be realistic when valuing your business – small business owners are not known for their objectivity in this area.
8. Credit check all customers and suppliers before doing business. This is particularly important when the economy is in a poor state.
9. Consider all avenues for funding in the early days – credit cards, savings, family and friends are traditionally the most popular sources. In recent years, Crowdfunding has become a fresh alternative for small and start-up businesses looking to raise money.
10. Most small businesses fail after running out of funds. Keeping on top of your cash flow should be your number one priority.