Heads-up with financial startups: tips to be successfulBy Adam Greene CPA

After thinking it over and over, have you decided to quit your job and become an entrepreneur? Good for you!! There are hundreds of opportunities out there and even though starting a business might not be easy, I applaud you being brave enough to follow your dream. And as building a company or brand takes a lot of time and effort, I would like to share some financial tips that I hope will keep you from making very common mistakes that can lead to a step back in your process.

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Prioritize tasks wisely to achieve your goals As it has been said by many, “Time is money”. It is usual that when people start their business, they spend a lot of time trying to figure out how to develop ideas, thinking of who to talk about them, and even planning for those meetings arranged. Just because you are the founder, it doesn’t mean you need to do everything around here! Give yourself a position in the company and focus on it. Delegation is a real investment, not just an expense. Finding the suitable person for a given position will allow you to devote your time to achieve your main goal while the rest of the tasks are also being fulfilled. If you still want to have some control of what is going on, setting deadlines and stages for achieving your goals will help you track the business progress. Keep your hopes high but be ready for the worst case scenarioWhen you take the leap into starting your own business, you need more than just believing in your brand or company. You need to be financially prepared for situations in which incomes are not steady or enough. If you have a job but still can work on your business on the side, don’t quit until you find some financial stability. If you definitely need to be involved full-time in your project and have decided to quit your job, it is recommendable to have at least six months of cash in savings for you to use in case of emergency for living or business expenses.

Check up on your cash flow and spending A business fails when it runs out of cash. If you have no idea where your incomes are going or where they came from, you really need to create a budget for your project, and a plan to achieve financial goals, and you should stick to that plan. It is understandable that there are many things catching entrepreneurs’ attention when they are starting out a business. However, keeping track of cash flow or spending must not become a secondary issue. You don’t want to waste your time at the end of the month trying to find out where the cash went or looking for financial information in a pile of papers.

Using an online software will help you keep track of your expenses and have your financial information organized. Once your business has grown, you might have to hire a professional to deal with complicated information.

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Pay yourself, cover your fixed expenses, and give yourself employee benefitsIt is ok if entrepreneurs don’t have big salaries at an early stage, but you definitely have to find the way to pay yourself for your hard work. You must think of yourself as an employee who has fixed expenses to cover, and also benefits to enjoy. About expenses, be smart, keep them low, be patient and make sure you have cash to cover your costs. As for the benefits, take some time to figure out which ones are worthy to keep and how much they will cost. Remember that now you are the only responsible for your welfare and stress or overwork are against it. If you are not in a desperate financial situation, you are more likely to make the right, rational decisions for your business. Find real customers who will give you real feedbackIdentify potential customers for your business. Ask them about their opinion, if they don’t like what you offer, that might be a great opportunity to find out what to change or adapt to meet market’s needs. If you only ask people who know you personally, the feedback you will get is not totally reliable as it might not be objective.

Find yourself a financial mentor Mentors’ role is to guide you through the journey you started. Let them do their job, analyze ups and downs a new company faces; help you make difficult decisions; teach you from their own experience. You don’t need to invest a lot of money in advisors. There are firms that charge according to the stage the company is at; and there are also entrepreneurs with experience willing to help you get your goals. Do not hesitate. Ask for advice or for help when it comes to make great financial decisions.