Startup Business Pitfalls Bookkeeping Miami | Your Bookkeeping Department

Bookkeeping Blog Presents Big Pitfalls for Startup Businesses

It’s tough to make a startup business take off. There’s plenty to do and most of the time it’s up to the founder to do it all. Thanks to tight budget, lean inventory and plenty of responsibilities, it’s easy to see why many startup businesses fail within the first year. So what can you do to put all the best odds in your favor and put your startup of the path of success? Keep reading this bookkeeping blog for all the details!

Startup Business Pitfall #1: Not enough cash flow

As a small business owner, you’ll immediately realize that it’s important to have cash flow. Whether you sell product or set up your own practice, cash flow management skills are a must. In fact, 82% of small businesses fail because there’s no cash by their side.

When it comes to cash flow, there’s plenty to think about. For example, late payments from customers can have a detrimental effect on your operations. Especially, with big invoices. As a startup business, you’re counting on this money. You probably know exactly where to invest it from more inventory to paying your employees’ salaries. Seasonal fluctuations are another factor that can influence cash flow. Slower months can really make a difference in your bottom line and you have to be ready for that. Emergency expenses such as broken equipment or even flooding can reduce cash flow over night.

To have a better handle on your cash flow, take note of where your funds are going, what are you spending your money on and when. Eventually, you’ll see patterns and be able to forecast cash flow. Trimming operations, negotiating rates, finding new ways to generate income may help you make more of the cash flow you have available.

Startup Business Pitfall #2: Poor communications of what you do

Many startup owners do a bad job of explaining their products and services. For some it’s overdoing it and sharing information overload when all the clients care about is what’s in it for them. While for some, it’s more about not giving enough details or not representing their business in the best way. For example, every startup should have a website or a the very least an online address, perhaps a social media profile, where potential clients can get information or get in touch. The better the design, the better the way you describe your services, the better the success of your startup.

A website can also help you directly with generating leads, since about 85% of consumers search first online. With optimization tricks, you can even choose the type of customer you want. For example, someone who’s local or living 10 miles away from your startup business. You can target a specific audience or even people looking for specific brands just by working in a few keywords on the various webpages. Online presence will help generate credibility and inspire trust too. It’s also a great way to distribute content to educate potential customers just like this bookkeeping blog.

Startup Business Pitfall #3: Administrative tasks galore

Too much stuff to do, not enough time to do it is every startup business’ story. Since you’re trying to keep costs down, as the owner you’re doing it all. You take care of invoicing, payroll, scheduling not to mention the actual work. It’s plenty of paperwork that can be overwhelming. In fact, our Miami Beach bookkeeping company helps many clients handle their administrative duties, assisting them in keeping track of it all.