As start-up businesses are usually prone to a high degree of financial uncertainty and risk, it is important to be aware of the challenges which may be faced in the high pressured start-up environment and respond quickly to any developments. Here are some stages that need to be managed carefully:
Business plan: Sales forecasts should be prudent, cashflow projections should be accurate, and allow for the unexpected.
Funding options: Consider alternative sources of funding especially if founding directors want to retain high levels of ownership and require quick decisions including the 3Fs, ‘peer to peer’ lending, ‘crowd funding’ and business angels.
Systems and reporting: Appropriate systems and infrastructure are required to scale properly and cloud computing is becoming popular especially for this reason. If you’re struggling to track and manage your new business targets, the KPI Dashboard can take a snapshot of your business & monitor the performance of your KPIs. Click here to find out more.
Resource management: The owner often inappropriately tries to wear several hats and micro-manage everything often to the detriment of the business. Explore part time solutions.
Exit: It is never too early to think of an exit in the start up stage, so you can work on optimising the value of the business early on in the process.