Two separate pieces of research, by Regus and PushStart respectively, released this month show that money worries are top of mind for start-ups.
Cashflow and funding were cited as the top concerns in each study, underlining the critical importance of cash to your business.
It doesn’t take much for a start-up to suffer cashflow crunch. For example, failing to chase up your invoices in a timely, efficient manner can cause huge problems.
MPR’s Peskett says that cash is the “oxygen your business needs to start, grow and then flourish.”
“It is important, therefore, that you fully understand your cash needs and have a comprehensive funding strategy in place,” he says.
“Your funding strategy should answer three key questions. Application: How much cash is needed and what will it be spent on? Timing: When is the cash needed? Source: Where will the cash come from?”
“Aside from your savings, or those of your friends and family, cash is available to you from three other sources: bank lending, equity investors, or one or more of the 600+ grants available to businesses in Australia.”
“For most start-ups, cash is often hard to get. Therefore, it is important that you minimise cash burn during your start-up phase by ‘bootstrapping’ and employing lean start-up methodologies.”
Worried that you may be heading for a cash-related disaster? Here are 11 handy early warning signs that your start-up is in trouble.
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