Launching a startup is one of the most exciting and most frightening actions you can take in business, as whilst it launches with an entire field of promise, many startups can begin life on fairly shaky ground.

This is what makes lean a popular approach and one endorsed frequently by the world of startup coaching, as it is designed to reduce costs and reduce the time before the business begins to earn revenue.

However, as so many startups have shown, worrying about funding is often the last aspect of startup life many founders want to be concerned about, given the burn rates of some startup companies.

Here are some top tips to help save money, stress and time, and avoid the risk of bankruptcy before your idea can be proven in the marketplace.

 

Set Up A Commercial Bank Account

As soon as you can after incorporating your startup, set up a commercial bank account.

This will not only help you look more professional and make it easier to understand your finances when it is time to pay your taxes but also provides protection from personal liability in case the business is sued.

 

Focus On Cash Flow

Startups go out of business for many reasons, but in many cases the reason is not that the business is not making enough money but that it does not have enough money to hand in the moment, making cash flow essential for the survival of a young business.

Send invoices as soon as possible after an order, keep an eye on debts, savings, ingoings and outgoings, and be prepared to borrow money if you need it.

 

Do Your Financial Research

Make sure you bring on an accountant as soon as you can and educate yourself on basic business financial literacy. This early step will help avoid nasty surprises later on.

As well as this, consider whether you need outside funding to grow your business, and look into the different options available for you, from peer-to-peer borrowing to conventional lending, grants and alternative investment.