10 tips on Finance for Entrepreneurs
1. A start-up usually slower than expected. Revenues tend to lag while the load is always greater than previous estimates. Do your calculations in a large room for your backup unpleasant surprises.
2. A growing company can have a great hunger for liquidity to finance growth. Walmart for years is a growing company with negative cash flows (to finance growth). Do not let you leave without the growth of liquidity shock. No matter how well you can not go walking out of the cash.
3. If you need external funding to provide capital, looking for professional investors and investment funds. Far better to have a professional individual outside investors.
4. Hire auditors and the audit of your company every year. No matter how small your business, the annual audit discipline discipline throughout the accounting team.
5. Nothing wrong with having received money in box company. Microsoft spent tens of years to collect unpaid dividends and liquidity for expansion. The money in the box gives you the ability for growth.
6. Control your customer payment deadline and do not hesitate to contact as many times as necessary deadlines. Many companies pay the most persistent first.
7. Customers pay. If someone uses your service and not pay, not the client, is a burden for your business. Get rid of the weight as soon as possible.
8. From the beginning you should be clear that you want to do with the company long term because of the financial decisions you and your operation is very different depending on you want to) sell to a third party, b) go public or c) keep your business up. If you want to leave your company “the children of your children” are not looking for venture capital, for example.
9. Common mistake of entrepreneurs is to think “I need the money within two years, I will be seen within 12 months.” Investors have their own plans and schedules. Earn money when an investor / buyer willing to invest or consistent with the strategy and not when you need it.
10. He is sleeping more comfortable when you have no debt. Try some of the loan as little as possible.
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