When you decide to open a business , how should you proceed to ensure financial management that allows you to prosper over time?

To answer this question we report the following 5 valuable suggestions proposed by the performance strategist Laura Garnett (author of several other business management articles for the major American business magazines), which explains in detail which financial strategies to adopt in the phase of Start Up of a business. Ready? let’s start right away!

# 1 – Define the monthly fixed costs

At the precise moment in which one sets out on his own, it is important to define and carefully establish the various monthly fixed costs that must be incurred to carry on the business without ever making it miss anything. Office rent, bills, insurance, salaries: all necessary expenses to support the basic needs of the company, to be considered from the beginning with the utmost care.

# 2 – Decide what you can do without

Starting from the assumption that opening an activity requires many sacrifices, it is important to be aware before embarking on this path of the fact that the salary to which one was previously accustomed could (at least initially) be inferior. What sacrifices are you willing to make in order to turn your entrepreneurial dream into reality? Clothes?Dinners at the restaurant?Weekend out of town? Knowing in advance what you can meet when starting a company, allows you not to get caught up in the typical demoralization of those who, when faced with daily difficulties, begin to regret their choices.

# 3 – Set a maximum risk limit

Considering the fact that, above all at the beginning, there can be several factors capable of wrecking a StartUp, so that the professional is not forced to face a real situation of financial collapse, it is important that the same (even before launching a certain entrepreneurial project) sets a maximum risk limit that should never be exceeded for any reason in the world: a sort of authentic exit condition that allows him to be able to leave the business as soon as the economic loss becomes unsustainable and / or constant.

# 4 – Set aside a budget for support activities

In the correct financial management of a company, the owner intending to guarantee solid foundations on which to base himself, must do everything possible to always have the funds available that allow him to carry out those support activities necessary to develop the company on an ongoing basis : whether it is adwertising on and off line, rather than new strategic assumptions or particular marketing operations, being able to have a certain liquidity to invest in the business, is fundamental to give it more opportunities for growth. http://ridgevcapital.com/Leadership.html

# 5 – Establish the right cost of the products / services proposed

Who decides to open a business must be able to quantify the right value of the products-services offered, considering essential factors such as the labor employed, the market prices, the cost of living, etc .: managing to correctly calibrate these same factors, besides being competitive in the eyes of the customers, the gains will become proportionate with respect to the workload.

These are the 5 financial tips for startuppers proposed by Laura Garnett: professional solutions that, if put into practice, also help the less experienced entrepreneur to get a good financial approach already in the short term.