Setting up a business is not easy. Some entrepreneurs start their company without due dedication and proper preparation & planning. Most people just don’t know how to run business and manage money.
1. Outsource when you can
There are so many processes involved in starting and running a company. Some entrepreneurs believe that creating a team early on is good thing. However, this is usually expensive because employees are usually the biggest cost for a company. They need an office, wages, allowances, salaries, and taxes. Instead of hiring employees, a useful financial hack is outsourcing when you can. You can use websites like Upwork and Fiverr to find affordable employees to do few things such as website design, content marketing and graphic design. This will save you a lot of money.
2. Taxation
Corporate taxes are usually big costs for businesses. As new company and entrepreneur, you need to ensure that your business is paying as little taxes as possible as taxes are expenses that can add up in time. Depending on the nature of your company, its possible to lower the taxes by registering it offshore. Consulting with a corporate service company can help you come up with good taxation strategy.
3. Online Tools
As a new Company and as a new Entrepreneur, it is important for you to use less expensive tools to manage your finances. In earlier days, entrepreneurs and company used physical documents to track cash whatever coming in and out. Nowadays new techniques have come for this. Companies use simple online tools to manage their payments. Like QuickBooks, Zoho Books and FreshBooks For example, instead of buying and installing storage servers, we can use cloud computing tools like Dropbox and Box. We can also use tools like salesforce and Zendesk to communicate with employees. All these tools come with the free trails and free package.
4. Separate Personal and corporate Accounts
You should open a company account as soon as you registered your company. Doing this will help we track expenses and manage your company’s income better. It will also help you when it comes to paying taxes.
5. Be Alert with your Equity
As an entrepreneur, you need to be alert with equity. If you have great ideas about investment, you can raise money from investors. If they believe in your ideas, these investors may decide to offer you more money to take more equity.
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