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6 Money Management Tips to Aid Your Startup Success [Infographic]

6 Money Management Tips to Aid Your Startup Success [Infographic]

A discussion on Quora revealed that there are 4 million entrepreneurs worldwide. In the US alone, there are 11.5 million entrepreneurs and approximately 2.6million venture backed startups. Moreover, the percentage of successful startups is significantly lower than that of unsuccessful ones. With these numbers in mind, we can assume just how important of a role money management plays in a world of “break-even” and “ROI” KPIs.

In order to aid young entrepreneurs and startup founders, here are 6 money management tips that might save the day.

1. Money Comes With Patience So Don’t Rush It

Before the grand launch, make sure you have a clear business plan and enough funds to cover both your immediate, longterm and unexpected expenses. Your safety net should cover the first three years and by the second year, stop relying 100% on external funding.

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Carefully separate company needs from personal desires. You may want your entire team to have the latest technology access and gadgets, but think twice before creating your paradise. Do you really need it? Can you still perform over 90% with more affordable options? If the answer is Yes, you know what you have to do.

2. Do What’s Best For Your Business, Not For You

Choose your business partners and employees or contractors with care. Pay attention if you don’t want to pay later for the lack of it. Don’t build your startup involving various services just because the people that offer them are your friends. At the end of the day, business is business.

As the infographic below by Mirador Wealth suggests, research before investing especially before going big. The most dangerous enemy is yourself: often, entrepreneurs push themselves into a “make it or break it” world, without realizing you can actually achieve success with baby steps. Empires were not built in a day. Most likely, it took years, decades or even centuries.

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Personal advice: “Don’t throw the nets into an ocean unless you are absolutely convinced it will bring you more fish.”

3. Don’t Let Competition Distract You

Just because your competitors are “older” on the market and can afford over spending, does not mean you have to follow in their footsteps. You may find that creativity gets you out of tight spots and a small, yet smart strategy can be more fruitful. As seen on Forbes. Be smart and engage your consumers wittily.

4. Constantly Keep An Eye On Expenses And Profits

Take into account what your monthly costs are, as well as any changes that can occur. If you don’t have a financial expert, pick up the pen, separate your fixed and variable costs, draw the line and monitor them closely. This alone will help you understand your monthly and quarterly profit, and provide a clear view on growth. The secret recipe is a good accountant + good bookkeeper + open minded business owner.

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5. Establish Clear Goals

Start with clear goals, as this Inc.com article suggests. Quarterly and yearly goals can do the trick should your startup be a new player on the market. A clear understanding of required resources and realistic deadlines must be taken into account. Important: stay away from these two extreme behaviors:

  1. Setting low goals and thinking you’re exceptional when you’re simply average.
  2. Setting goals almost impossible to achieve and blaming failure on others.

Communicate and consult with your partners and employees (or contractors) and be open to suggestions. A brainstorming session could make the difference in your pockets at the end of your third quarter, for e.g.

6. Re-evaluate Throughout the Whole Year

Any small business in its first five years of survival could benefit from this tip. For e.g., should your goal be generating a minimum of USD 5000 profit per month in a collapsing market, then it makes no sense to keep investing. Relax, re-evaluate your position and your odds and adjust your strategy to the “business flow”. Being inflexible might cost much more in the long run.

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Wrapping It Up

While we all tend to “listen, nod and then do whatever we want”, the best piece of advice that you can follow is to be realistic in terms of investments. Set achievable goals, keep a close eye on the bigger picture and be flexible. Last but not least, as a friend of mine often says: “Be an epic doer!”.

money management tips

    source: Mirador Wealth

    Featured photo credit: Sean MacEntee via flickr.com

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    Last Updated on August 20, 2018

    Quit Your Job If You Don’t Like It, No Matter What

    Quit Your Job If You Don’t Like It, No Matter What

    Do you know that feeling? The one where you have to wake up to go to your boring 9-5 job to work with the same boring colleagues who don’t appreciate what you do.

    I do, and that’s why I’ve decided to quit my job and follow my passion. This, however, requires a solid plan and some guts.

    The one who perseveres doesn’t always win. Sometimes life has more to offer when you quit your current job. Yes, I know. It’s overwhelming and scary.

    People who quit are often seen as ‘losers’. They say: “You should finish what you’ve started”.

    I know like no other that quitting your job can be very stressful. A dozen questions come up when you’re thinking about quitting your job, most starting with: What if?

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    “What if I don’t find a job I love and regret quitting my current job?”
    “What if I can’t find another job and I get in debt because I can’t pay my bills?”
    “What if my family and friends judge me and disapprove of the decisions I make?”
    “What if I quit my job to pursue my dream, but I fail?

    After all, if you admit to the truth of your surroundings, you’re forced to acknowledge that you’ve made a wrong decision by choosing your current job. But don’t forget that quitting certain things in life can be the path to your success!

    One of my favorite quotes by Henry Ford:

    If you always do what you’ve always done, you’ll always get what you’ve always got.

    Everything takes energy

    Everything you do in life takes energy. It takes energy to participate in your weekly activities. It takes energy to commute to work every day. It takes energy to organize your sister’s big wedding.

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    Each of the responsibilities we have take a little bit of our energy. We only have a certain amount of energy a day, so we have to spend it wisely.  Same goes for our time. The only things we can’t buy in this world are time and energy. Yes, you could buy an energy drink, but will it feel the same as eight hours of sleep? Will it be as healthy?

    The more stress there is in your life, the less focus you have. This will weaken your results.

    Find something that is worth doing

    Do you have to quit every time the going gets touch? Absolutely not! You should quit when you’ve put everything you’ve got into something, but don’t see a bright future in it.

    When you do something you love and that has purpose in your life, you should push through and give everything you have.

    I find star athletes very inspiring. They don’t quit till they step on that stage to receive their hard earned gold medal. From the start, they know how much work its going to take and what they have to sacrifice.

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    When you do something you’re really passionate about, you’re not in a downward spiral. Before you even start you can already see the finish line. The more focus you have for something, the faster you’ll reach the finish.

    It is definitely possible to spend your valuable time on something you love and earn money doing it. You just have to find out how — by doing enough research.

    Other excuses I often hear are:

    “But I have my wife and kids, who is going to pay the bills?”
    “I don’t have time for that, I’m too busy with… stuff” (Like watching TV for 2 hours every day.)
    “At least I get the same paycheck every month if I work for a boss.”
    “Quitting my job is too much risk with this crisis.”

    I understand those points. But if you’ve never tried it, you’ll never know how it could be. The fear of failure keeps people from stepping out of their comfort zone.

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    I’ve heard many people say, “I work to let my children make their dream come true”. I think they should rephrase that sentence to: “I pursue my dreams — to inspire and show my children anything is possible.” 

    Conclusion

    Think carefully about what you spend your time on. Don’t waste it on things that don’t brighten your future. Instead, search for opportunities. And come up with a solid plan before you take any impulsive actions.

    Only good things happen outside of your comfort zone.

    Do you dare to quit your job for more success in life?

    Featured photo credit: Unsplash via unsplash.com

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