Trader logo

Financial Questions to Ask Before Starting a Business

Asking yourself these questions beforehand will help you in your journey to creating a business.

By Matthew LittlemorePublished 2 years ago 3 min read
Like
https://matthewlittlemore.net/financial-questions-to-ask-before-starting-a-business/

Getting into business can be daunting, especially if you plan to start a new venture. According to statistics, only about two-thirds of new businesses last for two years. This means that even if you’re successful, you might not be able to sustain it for five years. Before starting a new business, you must ask yourself four important financial questions.

What Business Costs Should I Expect?

Initial startup costs are one of the most common costs new businesses face. This can be a substantial financial burden you’ll need to consider before starting a new business. Before you start a new business, it’s essential that you first think about the various expenses that will need to be paid for the first few years.

It’s also essential to ensure that you’re as accurate as possible regarding these estimates. Doing so will allow you to make informed decisions and avoid potential problems later.

What Will The Cash Flow Look Like?

After assessing the expenses, you must start thinking about your business’s cash flow. This will determine how much money you can expect from the various revenue sources.

Although you might be excited about the potential of your new business, it’s also important to consider how it will perform during slower growth. This will allow you to plan for the future and better understand how it will fare when the business starts to grow.

Where Am I Getting My Funding?

After calculating the financial projections for your new business, you must start thinking about the capital needed to get the business off the ground. Having enough money on hand will allow you to create the business smoothly. One of the most common funding sources for your new business is individual savings or loans. Entrepreneurs often create a combination of these options when launching their businesses.

Where Do I See Myself in the Future?

Before starting a new business, you must set goals and financial strategies. Having these goals can help you manage your finances and ensure that you’re on track for the future.

Having a long-term goal can also help you keep focused on the day-to-day operations of your new business. It can help you avoid getting distracted and having to figure out what’s going on with the business constantly. There will be times when your initial business operation can be very frustrating and time-consuming. Having a long-term goal can help keep you on track.

About Matthew Littlemore

Matthew Littlemore is an experienced global financier located in Orlando, Florida. Originally from the United Kingdom Matthew has gained multiple experiences for areas all over the globe. A strong leader in his field, he has 15+ years of experience in finance and business intelligence, that have all contributed to the numerous successes of his professional career. Over the course of his extensive career, Matthew has driven substantial business turnarounds, worked through acquisitions, has had successful ERP upgrades and managed international expansion. Additionally, Matthew holds experience in transfer pricing and tax strategy; his extensive financial experience and analytical approach to work has naturally set him apart from his peers. A global professional, Matthew has proudly worked in Europe, Asia and North America. Successfully getting to experience new areas through extensive business travel.

Aside from his successful professional career, Matthew Littlemore is a family oriented man who is happily married with four children. In his free time, he enjoys open water swimming and traveling with his family. Matthew’s global experience has provided him with a love for travel and experiencing different areas of the world.

To continue to keep up with Matthew Littlemore’s experience and professional insights into business, leadership, and finance, follow his professional and finance blog. Here, you can read up on useful business and leadership tips, as well as view different financial insights and advice. For more, follow Matthew on social media to see regular updates and information about finance, business, and leadership.

advicecareerpersonal finance
Like

About the Creator

Matthew Littlemore

Mr. Matthew Littlemore is a financier based in Orlando, Florida. With 15+ years of experience in his field, Matt has built his career on expertise in finance and business intelligence.

Reader insights

Be the first to share your insights about this piece.

How does it work?

Add your insights

Comments

There are no comments for this story

Be the first to respond and start the conversation.

Sign in to comment

    Find us on social media

    Miscellaneous links

    • Explore
    • Contact
    • Privacy Policy
    • Terms of Use
    • Support

    © 2024 Creatd, Inc. All Rights Reserved.