Major Key: Financial Tips for New Entrepreneurs

Everyone wants to start a business but have the least idea on where to begin. One major aspect of small business ownership is the money. Without the “Benjamin’s,” new entrepreneurs will have difficulty with operations, marketing, payroll and so much more.

So what should entrepreneurs know prior to starting their new venture? Per an article posted on AL.com, here are two tips that will put the future mogul on the right track.

1. Operate with sustainable capital. There are two ways to make sure you have the capital you need: liquidity (like a checking, savings, or investment account), or access to credit. “It’s key that you plan for this before it becomes a real situation. If you lose a big customer, have a fallback plan through access to liquidity or the ability to access some type of lending vehicle,” says Ryan Goldberg, Executive VP-Small Business Group at Regions Bank.

2. Understand your cash flow. Goldberg states, “It’s so important to understand the cash flow cycle—money coming in and money being disbursed. One of the most critical aspects of owning a small business is being able to manage your cash flow correctly.”

It is important to understand how money works as a new business owner. If accounting isn’t your thing, seek help from a bookkeeper, CPA or financial advisor. The goal is to make sure that you have the necessary knowledge on-hand (or on staff) to secure your company’s financial future.