Why You Need Financial Planning for a Business Start-Up

When you start a business, you should be excited. You should also be nervous because start-ups can fail in a split second. It is estimated 9 of every 10 startups fail, and the problems with the company range far and wide. According to a Fortune study, the top reason was a lack of market need, or no customers and clients. The #2 reason was because the business ran out of cash. Though based on a small sample, the need for financial planning is overwhelming.

Whatever product you have, you’re putting all your focus on developing and building that product to be successful that there is no capital for sales and marketing. If you can’t afford to market your product, you won’t reach the audience you set out to. Sitting with business start-up advisors in South Jersey and Philadelphia for financial planning will put you on the right track to control your finances and ensure there is still money in the bank for a long and healthy business venture.

What are the benefits of hiring certified public accountants like Zinman & Company PC to provide advice and set up a solid business plan as you move forward?

  • Debt Control: The quickest way to earn startup capital and to låna pengar, is to advance your credit cards and receive loans from your bank, family, or friends. Unfortunately, the easiest way for your company to fail is debt. A financial advisor and planner helps keep your cash in check. It is imperative you know how much cash you have to spend at any given moment, and it’s important to ensure all money is going to a legitimate creditor. Financial advisors will help you avoid sugarcoating your numbers to keep your business afloat.
  • Advice on Spending: If your startup is making good money, you can’t throw 80 percent of that into your pocket. You need to reinvest in the company to make your business stronger. It is estimated that 30 percent of small businesses fail because of fraud or embezzling money. To conserve your revenue, make sure you have at least 18-20 months’ worth of cash available. A professional small business accountant gives you the advice you need to make the proper business decisions and spend wisely.
  • Accounting Systems: A professional financial planner will help setup an accounting system to track and manage your successes—and potential failures. Customize business reports and earnings to budget the company wisely. Your personalized planner will assist in payroll, accounting, income in and out, and various procedures on day-to-day business operations.
  • Taxes: Startups need advice on how to plan for their business taxes. From storefronts to income, preparation and counseling from a tax planning firm can go a long way to keeping your business on the right path to success.

The improper use of your finances, and spending uncontrollably after an initial success period can be daunting to any business startup. It is beneficial to your overall business operation to team up with a financial advisor and planner to help establish your future. If you need to consult with a specialist, feel free to give Zinman & Company PC a call; our door is always open for you or follow this link for more information.

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