Many entrepreneurs are considering starting their own business in the new economy and for good reason. While a resent poll showed the number of people interested in starting a new business has increased to 14% from 10% in Q3 2016, it’s still a far cry from the 39% in Q2 2015. The resent rise could just be the first shoots of recovery for the British entrepreneurial spirit post the Brexit vote.
This has a lot to do with the fact that even though the effects of Brexit are impossible to predict, most business owners in the UK believe that the best thing to do is to keep progressing. This includes investing strategically which is aided by the fact that uncertainty gives way for more opportunities. If you take into account the fact that some of the most successful companies originated after the 2008 financial crisis, then there seems good reason to be optimistic.
Irrespective of the business environment you find yourself in, as a new entrepreneur you will face a number of challenges before you can establish yourself. At the top of the list of concerns for most budding start ups is finance. As with most things in life, starting with a solid foundation is key and the key to finance is planning. Here are 3 things every Startup should thoroughly consider.
Cash-flow
Thorough analysis of your cash-flow options (https://www.budgetmastermind.com/services/cash-flow-improvement/), factoring solutions and alternative finance options gives you a clear understanding of what you can do financially at the start, it also shows you the opportunities that are available going forward as the business grows. Small changes to your business structure can have a tremendous impact on your cash-flow.
Business Plan
It’s easy to overlook the importance of a business plan but that’s never a good idea. It is more than just a map for you, it forecasts your success and prepares you to navigate pitfalls, when it is structured around facts and informed ideas. It will also help you control your expenses and determine which aspects can be reduced or even taken out from the budget entirely.
Quarterly Meetings
Quarterly meetings are usually enough to reveal hidden costs that might be draining your business besides assuring you that it is going in the right direction. It’s important that all responsible partners have a chance to get together with the finances laid out. Decisions can be made based on solid facts and new opportunities can be identified.
Needless to say, in order to preserve a budding business environment in the UK after its exit from the EU, the need for self-sustainable business solutions is substantial. Poor financial planning is the main reason why most businesses fail before they realize their potential. Building a team you can trust to provide solutions and highlight opportunities fundamentally improves those prospects.
Planning takes time, effort and a lot of patience since it is incremental. Changing trends will compel you to change directions multiple times but with a strong financial team working with you, not just for you, you can be sure you’ll be building a business on solid foundations.
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