Taking Care Of Your Finances

Taking Care Of Your Finances
Anastasios Vasileiadis
by Anastasios Vasileiadis

One of the most critical aspects that most entrepreneurs find while starting a business is to raise startup capital. Gone are the days when investors pitch in money just by hearing a new technology idea. Today, entrepreneurs are more like a one-man army striving to win a battle and stay alive. But, if you do not have the cash to start up your own business, would you do? Luckily, there are still options available out there for funding new companies, but finding this funding and securing the cash can take a good amount of negotiating skills, careful research and above all extensive commitment into launching a new business.

Finances play a very important part in the growth of your company at various stages. Here are some places where your startup capital will go:

  • Payroll for you as well as your employees
  • Rent
  • Utilities which includes internet/ phone/ electricity etc.
  • Supplies
  • Sales and marketing expenses
  • Insurance
  • Taxes

Making sure that you have enough and more money to meet all your expenses and have some extra to carry on your business in the first year of operation is the core deal here. To help you calculate your startup capital we have a tool here which would take just a few minutes of your time and would help you evaluate and estimate the initial funds you need for starting up a new business venture. This tool will help you to be sure that you have enough finances for at least six months.

Forecasting Your Cash Flow:

One of the biggest reasons why most new businesses fail is because they do not have enough cash flow to sustain their company. Realistically speaking, it takes a while for a new business to get clients and start making profit after the initiation. Having sufficient funds to fund the company as well as its employees till this point is the most important part of keeping the company alive.

“Don’t gamble with your business. Try to have a simple and a realistic financial plan.”

Our tool here would only take 30 minutes of your time to give you accurate information about the financial assets as well as the changes in net assets of the company in due time and whether it can sustain in the present condition of the industry as well as the economy. Also, the tool helps in examining if the company can generate sufficient cash equivalents.

Calculating the Breakeven Point

As mentioned earlier, it takes some time for the business to get customers and start making a profit after its initiation. The point, at which the company starts making profit from its customers and its businesses, is known as the breakeven point. Our tool here will just take 15 minutes of your time and gives you accurate mathematical computation to help your company identify the point at which you will start making profit. It shows an accurate point where your total revenue equals the total cost.

The main purpose behind our tool is to help a business see the future of its financial status and be proactive in making the right decisions and achieve success.