Did you know that only half of startups with employees survive their first five years?
The world of business is tough at the best of times. At the moment, though, we’re facing plenty of new challenges and an economy that’s all over the place. For most of us, we can’t think of a time when the world ever looked like this.
But economic lulls aren’t uncommon. We’ve seen market crashes and closed business tons of times before – and we’ve taken plenty of recession business advice from them. Now when the economy is a bit low we know more about what to do.
To make sure you thrive through the rough times, take a look at our expert startup advice.
Manage Your Cash Flow
If your startup runs out of money before you’ve even got off the ground it’s not a good sign. So, managing your cash flow is essential during an economic lull.
Here are some easy tips to start managing your cash flow:
- Set up a calendar: On here, plot out when you’re set to receive payments by. It will help you keep track of when money’s meant to be coming in and spot it if it doesn’t.
- Plan your expenses: Instead of tracking expenses after you’ve bought something, plan what you need to buy before. This way you can create a detailed calendar of what you need and when you can buy it, stopping overspending.
- Negative or positive? Keep an eye on whether you’re getting more money in than’s going out, or the other way around. If your cash flow is negative, you’re losing money. Why is that? What can you change?
An economic crisis is tough, but by keeping an eye on your cash flow you can create a financial burden resolution that’s suitable.
Do Your Own Accounts
When you’re a startup, you’re going to have expenses coming at you left, right, and center. But, hiring an accounting team isn’t always a viable option, especially with an unstable economy.
Instead, check out accounting software. This can make it easier for you to monitor your accounts without adding expenses.
Know Where To Spend Your Money
If you’re looking at preventing company downsizing during an economic lull, you need to only be spending money on essential items.
Here are a few things that are worth putting your money into:
- Shared cloud-based resources for remote access by all staff.
- Website and hosting services.
- Shipping insurance for products. Take a look at Forum Insurance for more information about land, sea, and air insurance.
- Payment processing. This can be both for in-store and online.
- Payroll software. Choose automated software like Gusto to make it easier.
Find More Expert Startup Advice!
If you’re a startup, times might be tough when the economy is going a little downhill. But by no means does it mean it’s the end!
Put finance measures in place to monitor your money and know when to cut back.
For more expert startup advice on boosting your startup when times are tough, get in touch with our experts today.