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Updated by Atkinsons Chartered Accountants on Aug 21, 2017
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Top 5 Ways to Ensure That Your Startup is Financially Stable

There are few things more difficult than getting your first business off the ground. And while the benefits will far outweigh the cons once the company begins to turn a profit, there are some things to consider when getting started. Here are the top 5 ways to ensure that your startup is financially stable.

1

Take a Second Job

A great way to make sure that there is a bit of extra money coming in to help fund your startup is by taking a second job. Of course, this doesn’t mean that you must pull 40 hours weeks at this temporaryjob but instead work just enough to keep the funds in the green.

2

Monitor Your Receivables

One of the most important things that need to be considered in regard to a startup is monitoring the receivables. After all, if there is a delayed gap in payments from your clients it could lead to all sorts of issues. To prevent this, try working out a structured payment plan so that your business will have money coming in on a regular basis.

3

Hire Wisely

You will find that as your business grows there will become the necessity to hire additional employees. However, when the company is in its infancy, it is best to limit the number of workers to those that are absolutely vital for the business to operate. Once it gets rolling, then you can start taking on more employees.

4

Become Environmentally Friendly

It may seem that becoming an environmentally friendly business may actually lead to a rise in costs, but many times this is not the case. In fact, when you purchase equipment that is designed to be energy efficient, you will notice that the utility bills will substantially decrease.

5

Track Cash Flow

Perhaps the most important aspect when trying to get a startup off the ground is tracking the cash that is going in and out. If yourbookkeeping is not up-to-date then you could run into all sorts of financial issues, such as running out of funds. If you are a startup and you need assistance with accounting issues, check with a financial practice as they will be able to provide the answers that you are seeking.