If you’re running a growing start-up business, you’re going to need to take steps to keep your funds flowing during your first two years. The first two years are the most crucial times for a new business. The following is a bit of financial advice for you. Pay close attention to the tips mentioned below and use them to your advantage.
Keep a Hefty Nest Egg
One tip that will be helpful for you during your entire journey is to keep a hefty nest egg. In other words, don’t spend all the funds you have from loans or grants to start your business. You must keep enough money in an account to protect yourself if your business begins to struggle for some reason. A good rule-of-thumb strategy is to keep a least two years of survival profits in safekeeping. That way, you have something to fall back on if things don’t go the way you expect after you launch.
Accept Credit Cards from Customers
You will need to broaden your horizons if you want access to as many clients as possible. Offering various payment solutions can help you to do that. For example, more than 50 percent of consumers use debit and credit cards to pay for their items when they shop in stores. That means you will have to invest in a reliable POS system and credit card processing services so that you can offer your clients a convenient way to pay for their purchases.
Form Relationships with Lenders
Another way you can keep your startup afloat is by building your credit and forming positive relationships with lenders. You can do this early in the process by applying for something small, such as a business credit card or a low-cost equipment purchase loan. Make your payments on time each month and build trust with the lenders who grant you financial products. Eventually, you’ll have access to credit cards with higher balances. You can then have those lenders spread the word about your creditworthiness and reliability to other institutions. It’s always good to have lenders in your pocket just in case you need a larger loan at some point.
Educate Yourself on Taxes
Taxes are another area you need to watch out for if you want to keep your business in good standing. You must accumulate as much education on taxes and the tax system as you can. You can do this by visiting the IRS’s website and studying the information they have available. You can also contact a financial advisor or tax specialist who can teach you some of the concepts of business taxes. With the right education, you’ll be able to take advantage of all tax breaks and deductions, and you won’t ever get into a situation where you owe the government a lot of money.
Don’t Overhire Employees
Make sure you pay close attention to your budget when it comes time to hire your employees. Keep track of the positions you make available and do not hire any more people than you need to get the job done correctly. You should always pay your employees well. Giving such employees a good wage will be much more effective than hiring too many employees and not offering them enough money for their work. You may need a third party to help you look over your hiring strategy just to be sure.
Use a Third-Party Payroll Provider
You may want to consider hiring a third-party payroll provider and outsourcing it so save yourself money in the area of payroll. Payroll solutions companies offer packages that involve various tasks such as check making, benefits handling, and more. You may be able to save money by hiring a third-party provider instead of spending a chunk of funds on in-house payroll employees and then stretching them thin because of all the responsibilities they have. You owe it to yourself to at least consult with a provider and get some additional information about the pricing.
Start Empowering Your Startup Today
You have the power to make your startup something amazing. Use the tips mentioned above to help build your profits so that you can expand and be more successful in the future.