The most important prerequisite for a newly founded business to take off successfully is ensuring that they always have enough assets for their everyday obligations.
This is why a meticulously planned and thoroughly revised financial agenda represents the key factor of every start-up.
The more innovative methods for collecting and retaining finances you apply, the better liquidity your business will have.
In line with that, here are four creative tools for building a firm business structure.
1. Sell items to free assets
Before you start thinking about inviting investors to fund your business ideas, look around and make a list of things you own. The first belonging that crosses your mind here is most probably your car. If it doesn’t make profit, it’ll be a huge burden on your entrepreneurial back in the initial period of your business quest. So, sell the car and invest that money in your business. If the things turn out for the best, you’ll buy a better car once the business starts making profit.
In addition to the car, you can follow suit with every other vehicle, device and item that only incurs expenses, doesn’t bring money or is simply left to rot in your garage.
2. Charge-free advertising and collaborating
Every cent you don’t have to spend is an earned cent. Therefore, a new start-up owner should make use of all those modern means of communication and advertising. Needless to say, promoting your business via social media is the fastest way to inform the community about your products and special offers. When you create a unique offer for your clients in the virtual space, you’ll manage to generate new leads. In return, they will lead to higher conversion rates and better chances for higher revenues. Here you can learn more about the lead generation in social media.
Apart from online networking, establish connections offline, as well. Contact various businesses in your local community and offer them different sorts of collaborations. For instance, an accountant can offer their services to a furniture manufacturer in exchange for new items for their office. Always find a way to come up with win-win offers for different businesspeople.
3. Proactive approach to debtors
One of the greatest fears every new startup owner has is that they won’t be able to get the money they’ve earned through their services.
However, you should never be driven by fear when running a business. First of all, there are strong legal mechanisms that protect you from debtors and scammers. Secondly, business rookies should avoid making deals with companies of questionable reputation. You can tell whether or not a businessperson is reliable from their attitude. Also, inquire about your potential clients in business registers, as well.
Moreover, it’s not only low-brow businesses that don’t pay their debts on time, but even large companies sometimes fail to meet their payment deadlines. So, if you experience any stalling in payments, don’t hesitate to accelerate the debt recovery through special invoice plans for large companies and get your assets back.
4. Teaming up with financiers
There are certainly some situations in which you should introduce new characters into your startup story. For instance, when you realize that your business has been growing too fast for your managerial capacity or when you can’t make the ends meet your own way, it’s wiser to team up with experienced investors. If so, you need to prepare all your financial reports, as well as the future plans. The other side will be eager to know why you need a new investment injection, so prepare your reasons. Still, be aware that your balance is positive if you want to be at least an equal party in that new partnership. Of course, always learn more about the nature of angel investors and how to negotiate with them before you begin looking for them.
Since start-ups and small businesses are the backbone of every healthy economy, their existence contributes to prosperity of every society. So, business owners should know that they always have effective mechanisms at their disposal to keep their enterprises stable. Therefore, have no fear when you enter the business race, but expand your knowledge of the leverage you can use and take your business to success.
Dan Radak is a marketing professional with ten years of experience. He is a coauthor on several websites and regular contributor to BizzMark Blog. Currently, he is working with a number of companies in the field of digital marketing, closely collaborating with a couple of e-commerce companies.