How to Generate Funds for your Startups

According to SBA 90% of the startups fail within first two years of the operation. The second common frequent reason due to which most of the startups fail after poor management is lack of funding for startups normal operations and marketing campaigns. In this article we would be discussing tips which you should follow to generate enough funds for your startups.

Decide the Nature and Amount of Funds: – Before searching for funding opportunities you need to evaluate how much and when you would need funds. Whether you need Funds for Long-term or Short-term? How quickly you can pay back your funds? Whether you need entire amount at the start or you want them in small intervals? Whether those funds would be used for company expenses like paying salaries etc or whether those funds would be used in developing assets like real estate. Read more

How do the cash flow statement flows?

After understanding your financial condition and performance by reading your balance sheet and income statement, you may now have the picture of how your business is running. However, seeing a positive equity in your balance sheet or a profit in your income statement doesn’t make your financial understanding complete. The cash flow statement is one of the five main financial statements of a company. The cash flow statement tells us how sustainable a company is in a short run. If cash is increasing and cash flow generated by operations is positive, then we can tell that a company is healthy in the short-term. Increasing or stable cash balances means that a company is capable of meeting its cash needs, and remain solvent. This information cannot always be seen in the balance sheet or income statement of a company. For example a company may be generating profit, but still it cannot meet or pay its short –term payables or obligations. Read more