One of the biggest problem startup business entrepreneurs’ faces is the financial crisis, it happens because of not having proper plan, management and real time financial analysis. For some companies, they even can’t collect their desired funding from investors, only because of not having everything documented. The most problematic thing is, not being able to comply all legal requirements. However, If you follow the five financial steps while setting up your business, I believe you will not face that many difficulties that average entrepreneurs face.
I know, creating revenue projection is pretty painful and difficult for an entrepreneur. However, we must have to add it to our startup checklist, it’s really that much important. You might be not sure how your business will perform, what will be the realistic revenue but believe me, if you start creating the review projection, it will come to an end within the desired time as the chance is, you must plan everything while taking the business decision.
Revenue project will help you in two ways. One is it will help you rethink everything about the investment and return and second is it will force you to fulfill your target.
If you have the passion, a unique business plan and excellent execution, the sales will be started shortly, and money will start coming! In this step, separate your Bank account for your business from your personal bank account. This will help you differentiate your individual expense and business income-expenses. This is required to run your business efficiently, help you to become financially disciplined. And you know, eventually decision will bring you success!
Most of the startups don’t start with financial planning, especially when it comes to year based financial planning. This is one of the required plans for business; you shouldn’t miss it anyway. Planning for human resources, the infrastructure for your office- deciding whether you will buy or rent – operational costs, costs for product development and innovation and so on should be included in your plan!
Just having a bank account is not enough for modern business; you need a business credit card as well. As business in Bangladesh is moving to online so fast, you may need to make some payment online, buy any international service like domain or web hosting, do some social media marketing, or specially Facebook advertising, you can use the credit card. However, the sorrow part is, we are not allowed to pay more than 1 thousand online per year and 100 USD once. However, to make your business transaction handier, a business credit card really helps.
This is must maintaining an accounting system for every business, to track sales, review, expenditure and overall, your business. If you are a small startup, you can use a free accounting system like Wave Accounting (This one is an online accounting tool and recommended for small business, it’s really easy to input your data and check business performance) or open source accounting software like GNukash. However, the problem with this free accounting software is lack of available local support and feature compliance with Bangladeshi business.
So if you have some budget for the software, you can get Tally.ERP 9 from Tally Software Bangladesh, I can assure, this will be the best investment for your business. You can find some local accounting software like Troyee (Accounting Software for small and medium business) and Billing Master (For trading organization) as well. You may need to implement ERP software if you start your business in large scale!
What’s your suggestion about financial steps of startup? We want to hear from you. Leave your feedback on the comment box or let me know if you have any query to get answered. I will be happy to answer.