When you’re first scaling your business, the finances involved can be overwhelming. Here are some helpful tips for navigating the finances of your small business or startup.
Don’t Trust Your Gut — Really
Trusting your gut is a huge thing for entrepreneurs. And while intuiting can be valuable in many aspects of business, finances are often too complex to feel your way through. It’s easy to focus so much on the money coming in that you fail to recognize how much you’re spending. There is an abundance of accounting tools available in the digital age that can help you keep track of your money easily and efficiently.
Keep Your Fixed Costs Low as Possible
Keep it down to the essentials as much as you can. Think about in the sense of your personal life. Do you really need cable tv? How many shows or how often do you use that streaming service? In our personal lives, but especially in business, the extra $100 here or the $200 there can really add up. Don’t be afraid to shop around on those fixed costs if you can. If you run a machine shop, who else can you by material from? Is it cheaper anywhere else?
These are just a couple ways you can have a better understanding of the financial aspect of your business. If you have any other concerns or questions regarding the accounting side of a small business or start up, please feel free to dig into the plethora of resources you have at your disposal with your AFEUSA membership! We have plenty of resources that can help you better understand various aspects of the business world.
Director of Communications