Mind the cash!

Making sure you have enough money to cover your start-up is easier said than done. However it needs to be said: If a business is under-capitalised, the survival prospects are not good. Your business – and you - will need sufficient cash to carry you through the initial months of operation until the business begins to break even or turn a profit. There are some sane ways that contributors to smallbusinesscan have raised start up finance, such as selling (the number one way to raise finance) bank loans (know what is required), savings, family and business partners (get written agreement), grants (worth the effort?), investors and awards and competitions (take it serious, consider the Business Achievers award). including bootstrapping ie putting everything back into the business until it becomes self sustaining. One last thing: keep accurate and up to date financial records and manage your cash flow. A close eye on performance means you can address problems straight away rather than leaving them too late. This can save you money and your business. Knowing what’s coming in, what’s going out and your cash position tells you your company’s financial health.