Money Matters: 5 Financial Tips for Startups and Small Businesses

5 Financial Tips for Startups and Small Businesses

Strategic Planning and Execution: Knowing your direction is the first step in managing your finances. Ask yourself: "Where am I now?" "Where do I want to be, and how will I get there?"

Develop two concise plans, one for personal ambitions and another for business objectives. Keep these plans simple, focusing on your business goals, core values, and vision.

The Importance of Accountability: When running your own business, being accountable is essential. Having a mentor, whether through a coaching program, networks like the Inspiration Space, or an accountant, can help keep you on track and make necessary adjustments to your plans.

Focus on Profit Margins and Pricing: Start by understanding what you need from your business, including salary expectations, pension, work-life balance, and overheads.

Then, determine the volume and pricing of your products or services needed to break even. After that, calculate the additional sales required to reinvest in your business and achieve the lifestyle you desire.

Manage Cash Flow: Make it a habit to save a portion of your business earnings. Allocate a specific percentage to a separate bank account every time you make a sale. This strategy is beneficial for setting aside funds for your tax bill or annual expenses.

The Power of 1%: Growing a business can seem overwhelming. Instead of aiming for large growth spurts, consider aiming for a 1% increase in turnover each day.

This approach to small, consistent improvements will compound over time and help you reach your goals more effectively.

By focusing on strategic planning, seeking accountability, prioritising profit margins and pricing, managing cash flow effectively, and embracing the power of incremental growth, you can take charge of your finances and set your business on the path to long-term success.