In the business of startups and entrepreneurship, every dollar counts. And when every dollar counts, every hour does as well. Meaning entrepreneurship is less about putting in man hours and more about efficiency. Efficiency in strategy, business development and most importantly, finances.
Developing a finance and accounting plan for your budding business endeavor is consistently ranked as one of the most stressful parts of founding a startup. But it doesn’t have to be. Small changes in how you run your business can save dollars and establish effective habits to gain valuable investment insights.
Delegate & Automate
Know what you’re good at as a leader in your company. Delegate smaller decisions to trusted employees to make room for larger decision and growth. For Facebook founder Mark Zuckerberg this meant taking on only the larger, tougher decisions and leaving subsequent decisions to trusted managers. As your startup’s leader, your time is the most valuable – don’t step over dollars to pick up nickels.
Ban Self-Defeating Phrases
Phrases like “It doesn’t cost that much” and “I’ll make up for it next month” will only serve to defeat you over time. Everything in the start of your business has an associated cost. Thinking of buying some extra swag? It’s only an extra $20. Think again. That extra $20 right now can mean the difference between being able to purchase crucial software later. Additionally, sticking with the mindset it’s only $20 here and only $20 there will add up to thousands in debt.
Stick To The Financial Principles
Starting your own business is risky enough, making it key to stick to tried and true financial principles such as:
- Spend less then you earn
- Track your expenses and use a bookkeeping system
- Think and plan for both the long- and short-term
- Save more during high-earning months
- Set aside money for taxes repeatedly throughout the year
Find A Mentor
The best way to get on track and stay on track with finances is by finding a financial mentor. Choose someone who’s been where you’ve been before and climbed their way to success. This person will guide your entrepreneurial endeavor and keep you accountable.