When just starting out, many new business owners don’t have all the financial tools or experience they may need to run a business successfully. They may rely on their peers, what information they can find online and various business books to get them started, but nothing can truly beat experience when it comes to knowing how to handle and succeed with money in business.
That’s why eight members of Young Entrepreneur Council offer their best guidance below. Here, they each share one financial tip they wish they had known when they got started, and why this advice can help any entrepreneur get their business off the ground successfully.
Young Entrepreneur Council members discuss financial tips they wish they knew sooner.
Photos courtesy of the individual members.
1. You Don’t Have To Invest In Financial Tools Right Away
Startups already have a limited budget to begin with, so it’s unwise to spend what you have on tools to facilitate certain processes. Relying on the tools from the get-go can limit your learning capabilities. So, it’s better that you try to build the processes from the ground up. As for the experience, you will earn it as you go. To get started, all you need is a dream and the drive of working hard enough to achieve it. – Stephanie Wells, Formidable Forms
2. You Should Create A Budget And Stick To It
One of the most important things new business owners can do is create a budget and stick to it. Doing so will help you keep track of your expenses and make sure that you’re not overspending. It’s also important to have a handle on your finances and to understand your cash flow. This will help you make smart decisions about how to use your money and will prevent you from getting into financial trouble. – Syed Balkhi, WPBeginner
3. It’s Okay To Seek Professional Help
A simple step that any new business owner can do is work with an accountant. You don’t have to hire one full time. Many professional accounting businesses will handle your books for a monthly fee. This will ensure that your finances are in order from the start and will save you a lot of headaches down the road. Accounting firms and professionals have a great deal of business and financial knowledge. They also have a great deal of experience setting up businesses and managing legal documentation. They can help you get your business up and running in no time if you’re willing to trust them and invest in their services. – Blair Williams, MemberPress
4. It’s Key To Improve Your Financial Literacy
When you’re a new business owner, it’s important to work on improving your financial literacy. Many entrepreneurs are knowledgeable about their field but don’t necessarily know much about finance. There are many free and low-cost resources available to help. Don’t try to learn everything at once, but make it a habit to absorb financial information whenever you can. Listening to financial podcasts is a good way to pick up ideas and terminology. This is something you can do while commuting, taking a walk or run or whenever you have a spare moment. If you prefer, you can read blog posts or watch videos. – Kalin Kassabov, ProTexting
5. Always Be Mindful Of Your Spending
One of the most important things for new business owners to keep in mind is that they need to be mindful of their spending. It can be tempting to splurge on office space or expensive equipment when first starting, but it’s important to remember that every penny counts. It’s also essential to have a clear understanding of your financial situation and to create realistic budgets. Many new business owners don’t realize the importance of building a cash reserve, which can help you weather unexpected expenses or slow periods. Finally, it’s always a good idea to consult a financial advisor or accountant to get expert advice on managing your finances. These professionals can help you make sound financial decisions that will set your business up for success. – Michael Garrido, E-Valve Technologies
6. You Have To Either Learn It Or Hire For It
To handle money successfully, you have to learn it or hire someone experienced. There is no other way. Many entrepreneurs or budding business owners learn business processes at their jobs. They work a long time in a decision-making role to learn about running a business and gain critical experience. Then they start their own ventures. This is true for a considerable number of entrepreneurs. One can even obtain financial literacy from professional courses, but this is not enough to be able to handle a business. Business literacy is a whole different game, and the best way to learn it is by living it. I always try to learn things by doing them. Further, when I need help, I speak with experienced professionals to get the best advice for my specific situation. – Kelly Richardson, Infobrandz
7. You Need To Develop The Right Mindset For Handling Money
The tools for financial management are meaningless if you don’t have the right philosophy for handling money. For most businesses, it’s not the big expenditures that get them—it’s the mismanagement of all the small items that really add up. It could be subscriptions, office expenses, unnecessary employees whom you haven’t found a good fit for yet and more. Your cash flow is the lifeblood of your company; you need to watch it carefully. Track all your expenses monthly, and keep track of the monthly recurring subscriptions especially. I wish I had known this when I got started, as I could have had greater success earlier. – Andy Karuza, NachoNacho
8. You Just Have To Get Started
Just begin. Save your receipts and invoices as you go. Track every dollar your business earns. Tax services are extremely affordable, as are LLC formation services. You need momentum in your favor; the rest can happen in due time. Business leaders aren’t experts at finances. They’re visionaries. They’re creatives. Somebody will be all too grateful for a chance to earn a little bit doing your books or designing your logo. Remember that nobody knows everything, and that’s not the bar to entry for any field. So give yourself grace for the things you don’t know, believe you can learn and prevail, and you will! – Tyler Bray, TK Trailer Parts
