Basic Financial tips for Startup Business

So, you are trying to start up a new business with friend and you don’t know yet how to manage financial for the start up company. Well, there are many people who have same problem with you but don’t be worried, financial plan for startup business can be learned by anyone and here are 5 basic financial tips for startup business.

First, don’t put all capital for the startup business since you don’t know yet exactly about the market and other possibilities that related to the business. Reality often give something that extremely different from prediction so allocate about 50 % of the capital to run the business for the first time. Second, allocate 20 % of the total capital for saving. This is a preventive effort to keep the business rolling even if you can’t make profit for few months from the grand opening. As you know, Rome is not built in a day so does your business. Third, if it is possible, hire the part-time worker to help you run the business. You can hire college students and pay them half or the current professional worker’s rate. Monitor the progress and if the college boys are good enough to run the business, you can hire them after they are graduated from the college.

Fourth, join insurance for startup business. You need to secure the assets so insurance is a good choice. Simply pay the insurance premium every month and you can stay focus in the business. Last tips invest your money in brand activation programs. The big companies always keep their brands live among people so follow their path to build your brand and within few months ahead your brand will be popular and popular brand can give positive contribution to sales record.

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