As a small business owner, you will have to learn the basics of funding, bookkeeping, and building relationships with lenders and investors. Here are practical do’s and dont’s that will help small business finance themselves.
Focus on the meaning and not money – Speak to your investors about your company and what you are passionate about. It is important that your product or service fulfills an important need, that is unique.
Your team defines your business – Investors like to invest in people that they feel can build a business. Gather a team of people who have experience in your industry and can bring different viewpoints to the table.
Choose investors that care – Your investor is going to be an ambassador of your business and they are going to represent you. Therefore, your investor should share your values and motivation to grow your business.
Use technology to reduce high startup costs – Today businesses can start up with a minimal budget, due to many online services, marketing and management tools available. Try your best to automate your business using social media and use services like Freshbooks, Paypal and Stripe.
Stay Hands-On with your Finances – Spend time understanding your business’s finances and pay close attention to numbers. It is important that you monitor financial reports and cash flows regularly.
Budget every dollar – Use budgets and realistic sales projections to plan and run your business. Make sure budgeting is included in hiring, travel and all expenses incurred for running the business.