Having a creative idea can’t only help a startup to grow. The one & only aim or goal of every startup business is to grow financially also to maintain financial stability throughout its lifetime. But the path to achieving this goal is not that easy for startups.
The first step towards this goal achievement would be a proper & effective cash flow management. Cash flow management can be done by manually but it will be a time-consuming task, so the smart way is to do this by using a tool or software. The best cash flow management software is ProfitBoard (a product of SlickAccount).
We have shared an article on why cash flow management is necessary and how to it effectively. Read it here: https://blog.slickaccount.com/2018/04/10/why-cash-flow-management-how-to-do-it-effectively/
Financial stability can be achieved only through proper planning & money management. Every startup should find out probable challenges and ways to get rid of those challenges beforehand in order to grow & maintain financial stability.
Finance & Accounts is one of the two top areas which lead most small businesses to failure. Founding members are ones who make the key business decisions in a startup or small business. But without understanding the business’s financial planning & analyzing financial transactions, it becomes very difficult to take really good decisions. Followings are the key problems:
- Most Founders are either tech or marketing persons and are not from finance background
- Lack of understanding of business finance & accounting which are the biggest loopholes in taking smart business decisions.
- Having a small budget to hire an expert.
- Financial reports are hard to understand and do not provide meaning for day to day operation of the business. And no one or tool is there to make it meaningful to them.
- Fewer team members.
- Keeping track of various types of financial transactions
- Lack of financial planning.
- Proper analyzing of financial accounts of the business.
- Proper maintenance of income & expense accounts.
- Business Profitability
- Understanding business from financial data
- Fail to Plan
Here are some major & most common financial challenges faced by startups:
- Less knowledge on business finance & accounting:
- Lack of fund:
- More sale & less profit:
- Longer credit cycle:
- Improper budgeting & forecasting:
In the market, there are lots of tools available to help startups with a better financial planning to sustain in the market. But from them, fewer are best. The best financial planning tool at an affordable cost for startups is ProfitBoard ( a product of SlickAccount).