Money is the reason for starting a business. Or, not to start the business. Many wanted to start small businesses now. And startups are like stepping stones before stepping into a more challenging giants business. But do you know how important it is to manage a startup financially and wisely so your business continues to expand to the next level?
You should adopt systematic financial management even for small businesses. How well is the importance of organized financial management in small businesses? Should you rent an entire office space or start with hot desk in coworking space?
Let’s check if you’ve applied the tips below in your business so it’s helps to save money while you building-up your startup:
Separate business expenses privately
Indeed, as a startup business owner you must identify the expenses for business or personal such as tax, liability and so forth. Then it’s easy for you to isolate them. You can set business budget and personal budget more granularly and firmly so credit cards and loans for businesses are not used for personal matters and vice versa. Although we do business in small scale, we are obliged to separate personal money from business money by opening a bank account for business and alienating your personal money from it.
Save on business expenses
Take advantage of opportunities if there is a rebate offer for office equipment and suppliers. If you want to buy large-scale office furniture or equipment, just buy ‘secondhand’. Do not take too long and stable business.
Do not delay on paying bills
Pay all business bills like vendor bills and utilities exactly on time. Avoid penalties especially in tax payments. Use the ‘organizer’ on your phone to make a reminder every time the bill is due. Plan the warning period and ‘dateline’ the bill.
Choose the best vendor before entering into an agreement
Importance of skills in negotiating with vendors or suppliers so you get the best price offer. Carefully examine what terms and conditions they put in order to help you make a decision. Can your business follow the terms and conditions that they set up? Can it helps you in reducing your business cost?
Learn basic in accounting
Startup and small mall businesses may not require deep knowledge of accounts. At least you have an accounting basis. While it is possible to appoint a staff or a bookkeeper to keep the business financially, but as a business owner you should know and understand the business money outright.
Remember we should get used to keeping a complete business record even if our business is small. By keeping a consistent business record, we are able to study business profitability and make it easier for us to grow our business in the future. And most importantly, do not hesitate to have your own business office which will use more money. But it best to start with a coworking space like Common Ground that has provided all the amenities while you can save on your business costs.