As an entrepreneur, you know better than any how difficult it is to keep your business afloat. With only a handful making it over the five-year hump, it’s no wonder most startup owners have a lot of questions about what exactly they can do to get ahead and give their business the chance it deserves.

The truth is that, while most businesses have a few hiccups along the road before establishing themselves, the most successful ones had their finances in order and were able to follow a strict budget.

Without managing this, it’s going to be very tough for your business to survive and stay ahead of the game. Focus on the aspects below, however, and you may be able to increase your chances.

Keep your fixed expenses as low as possible

As a young startup with the future ahead of you, it’s important to first have a solid foundation. While it may be tempting to go all-out and introduce everything to your business it once, this is actually not the way to go if you’d like to give yourself the best possible start.

Limit your expenses, first of all, and focus on boosting your revenue in order to stay afloat when something unexpected happens. And something unexpected will happen, it’s the one thing you know for certain. It may be an utterly failed product launch or a tax payment that is much higher than you thought it would be; cut your costs right away and read up on those tax obligations on AFH to keep your startup prepared.

The businesses that have prepared for this by keeping it simple and avoiding a mountain of fixed expenses will have a much better chance than the ones that didn’t.

Continue to monitor your cash flow

One way to keep your expenses low is, of course, to opt for a virtual office rather than a physical one. This may work a bit better for some than others but it will certainly save you a ton of money from the very start. Whatever your expenses are, make sure you keep a strict eye on your budget and stay true to it – preferably truer than you’ve stayed to anything in your life.

Cash flow management is key to surviving those first crucial years and, of everything you might neglect or skimp on as a business owner, this is the most devastating one.

The reason for most startups failing isn’t that they had a bad idea, from the beginning, or that they didn’t do their market research properly; it is because they ran out of money. Without a steady cash flow, you won’t be able to do much at all so continue to prepare for any sudden expenses and look for a reputable accounting software to help sort you out.

 

As you grow, it may be wise to hire a professional to take care of this but try to stick to the software while you’re still young. That way, you’re making the most finance-savvy decisions when it matters the most.