Basic Considerations to Make Before Starting a Company

Being in this industry for more than a decade, our extended family & friends are the one who are most benefited :P

“No Charges and unbiased Consultation - Who doesn't want it?” one said?

In a similar situation, a friend called and excitedly announced about his startup in IT Softwares. We made up Saturday’s plan to celebrate the start of a new phase.?

Coming Saturday, We all met and a few drinks down, I questioned about initial finances and legalization required before starting a company.?

He dazed at me and dared to ask "What? Which basic financial considerations?"

4 major factor to consider financial stability:?

• Line of Credit: Apart from your investment, you'll need funding to operate your business. A regular cash flow is necessary to run operations and pay monthly salaries. Short-term loans can be handy and quick to return without burdening the investment and savings.?
• Maintain Cash Reserves: Your initial savings won't last long. Having a savings plan in place and avoiding paying interest provides financial cushioning during downtimes or allows you to expand your business at the right time.
• Minimize expenses: You can avoid consuming limited cash reserves by keeping expenses low and delaying unnecessary spending by prioritizing the necessary expenses.?
• Track and Monitor Spending: Through various financial softwares, one can monitor every dollar spent and regulate it as per company goals. Without monitoring, your business could face danger.

Planning and setting up financial monitoring ought to be taken seriously, so keep a close eye on cash flow.?