Running a startup can be expensive. In the initial setup phase, it can seem like you need money for everything. What is more, you want to spend money on everything. You think that you need every piece of tech on the market, lest your business will fail. Stop. Think. Manage your finances. Everyone knows that start-ups are prone to failure due to overspending. So, if you want to beat the curse of the start-up, you need to make sure that you are managing your budget more effectively.
After all, no one wants to become another statistic.
Here are four innovative ways to manage your budget.
Track, Monitor, Budget
Yes, we all know that we need to track, monitor and budget accordingly. It has to be done properly so that your business can thrive. But, managing and monitoring can be difficult when you don’t know where to start. As a general rule of thumb, you need to use apps and finance software. Small business accounting software ensures that you are tracking, monitoring and budgeting in real time. This is vital. Get rid of the draconian ways of working and ditch paper. Seek out free invoicing and accounting apps and software. Load them to your phone. Work on the move. You don’t have to miss a single penny. This makes life easier for you in more ways than one.
Can You Benefit From a Professional Opinion?
Saving money means having to spend money. Yes, this is an oxymoron. But, think logically. If you are unsure as to how to manage your money, a professional can help. Hire a consultant accountant on a one off basis. You don’t have to work with them on a project. Get them to scan your finances and ask them where they would suggest you cut back. While tracking and monitoring are vital, you may discover that you have overspent. So, seek advice from the professionals and ask them to look over your books. They can make great suggestions on how to cut back with compromising your business.
Prioritise Your Costs (Hint: You Don’t Need to Buy Everything)
Prioritising your funds is a nightmare for the average start-up entrepreneur. But, be real. Do you really need a £3000 chair for your home office? No. You don’t. Think about what you need to spend money on. Hint: your website cannot falter. Invest wisely. You don’t need a mahogany desk, but you do need a kick ass website. Create a checklist of essential items that assists your business. So, computer equipment and technology is a must. Check out business software. These are vital for your business. Create a budget that is realistic and workable. But, do make sure that you check out government grants too. These can be a great help for the fledgling business owner.
Hone Your Processes
This is going to take a while. But, developing a budget process is imperative. Make sure that you are preparing projections, operating costs and capital requirements. Vitally, you need to ensure that you are managing your overhead costs. Check this monthly and store your budgeting in a spreadsheet. Yes, it’s tedious but having this process will help.