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Launching A Startup In Uncertain Times? These 3 Financial Tips Can Help You Navigate the Storm

Launching a Startup in Uncertain Times

Even when the economic environment is stable, launching a new business can be all-around challenging. The challenge gets even tougher during uncertain times. But, you can navigate through any hurdle and manage your finances better by adopting the tips in this post.

Tip #1: Get Savvy in Managing Cash Flow

This is a key factor in starting a business from the scratch. There are many reasons new businesses collapse long before they have a chance of surviving. One of the common reasons is poor cash flow management. If you do not track the movement of every dime from the beginning, you can be sure of running out of money sooner than you imagined.

The message is clear and simple. Do your best to be on top of your cash flow. That is a better way to avoid endangering your business. Even if your idea is excellent, it will remain an idea or be cut short if you do not have enough money to make it a reality. One of the practical ways to become disciplined in managing cash flow is to stick to a budget you have already put in place.

Tip #2: Keep an Eye on Expenses

As you are launching a new business, bear in mind that there are lots of expenses coming from different angles. Therefore you need to track all expenses. Since the tasks will be too much for you, or you probably don’t even have the right skill for accurate expense tracking, you should hire an expert.

At the startup level, especially in times of economic crisis, it’s not a good idea to add up to your expenses by hiring a full-time accountant. Be smart like other startups and outsource bookkeeping to an independent contractor who specializes in bookkeeping and accounting.

Getting someone who commits to record keeping will greatly aid more accurate and effective cash flow management. It’s also a great way to simplify the tax process when the time comes.

Tip #3: Have a Positive Perspective, But Get Ready for the Worst

Especially during uncertain times, you need an optimistic spirit to survive the challenges of launching a new business. But, staying optimistic is not enough, you also need to be ready for anything that may happen.

For instance, if you can carry on the setting up of your new business without quitting your present means of income, please do that. It will help to provide you with some financial hedge just in case. An online business gives you time to keep at your job while setting up your business.

Finally, make sure you cut back expenses from the very start. Cut off unnecessary expenses such as renting an elaborate office or hiring many full-time staff members.

Daven Michaels is a New York Times Best Selling Author and CEO of premiere global outsourcing company, 123Employee. The company employs hundreds of young bright individuals on three continents. His International event, Beyond Marketing Live! Inspires entrepreneurs to build & grow their business with revolutionary new theories and systems allowing them to design the business and personal lifestyle of their dreams

2 Responses to “Launching A Startup In Uncertain Times? These 3 Financial Tips Can Help You Navigate the Storm”

  1. What a great post! Tons of great advice. Thanks, guys! ?

  2. That was just a whole load of information. Absolutely loved it! Thanks for sharing!

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