It’s Time for a Money Management Check
Peter J. Burns III is a supremely skilled start-up guru. Over the past several decades, Burns has built over 150 lucrative startups, and he continues to start even more successful projects at an astounding rate. Burns has immense knowledge about what it takes to run a successful business, and he knows that the proper management of cash is absolutely essential, especially for new startups.
Not only is Peter J. Burns III is an impressive “serial startup entrepreneur” himself, he has spent a vast amount of time mentoring and teaching others in the entrepreneurial community. Burns has taught courses in entrepreneurship at Arizona State University, as well as at Grand Canyon University, where his efforts helped to build the school’s pioneering entrepreneurship program. He also founded Burn$ Funding, which provides a unique toolkit expertly designed for entrepreneurs and their financial needs.
A few of Burns’s top tips for managing your startup’s cash flow:
1. Use a business card and take advantage of cost segregation
Under no circumstances should your personal accounts should not fund your business. Use a separate credit card to pay for any goods or services that you need for your startup. It is vital that your business expenses and your personal expenses do not become intertwined.
Not only does this practice help you to see what you are spending on your startup, it can save you an enormous amount of money. Cost segregation is all about tax benefits, and the net present value of the cash generated by those tax benefits. Do not take unnecessary risks by muddling your personal expenditures with potential tax write-offs for your business.
You need the very best credit card for your startup. For this reason, Peter J. Burns III created the Entrepreneur’s Credit Card Program. The financing program will give you the funding you need; it offers up to five times the financing that other lenders offer and features better rates and an instant approval option. It also features a 0% interest period which lasts for 12 months or longer!
2. Create an emergency fund for unexpected cash flow issues
The adage “expect the unexpected” may sound cliché, but this sage piece of advice has endured for a reason; emergencies happen to everyone. Prepare for them ahead of time. You should have a business savings account that which contains enough capital to power your startup for 3-6 months. Hopefully, you will not find yourself in a situation quite that dire, but in the event that you do, you will be ready.
If you find yourself in a critical situation and you do not have an emergency fund, there are resources thatwhich will help you to avoid losing your business. For example, bridge funding is a measure thatwhich can keep your startup going in an emergency. Peter J. Burns III offers this service through Burn$ Funding. The program can also pay down credit card balances up to 30% utilization, as opposed to the standard 45%, which gives you an opportunity to boost your credit while you sort out financial concerns.
3. Choose cloud-based accounting software
If you are using a program like Excel to track your expenditures and profits, you’re making a big mistake. Do not take the risk of storing financial data on a local hard drive, where it can easily become lost, or even stolen.
Your data should be stored securely in a cloud-based service, such as Startup Financial Model, Xero, or Quickbooks. There are several options to choose from, and most feature free trials. Only trust your financial data with a reputable cloud-based software program. You must be able to access your records wherever you are, and backing that data up in the cloud is essential.
Furthermore, cloud-based accounting systems offer an array of features that allow you to analyze, organize, and prioritize your cash flow. You can also use cloud-based software to share charts, reports, and insights with trusted individuals.
4. Hire a cutting-edge professional
As an entrepreneur, you work tirelessly to make your vision a reality. However, you should not attempt to do everything yourself, nor to be an expert at everything yourself. One of the smartest moves you can make is choosing a reputable, highly-connected professional with in-depth industry knowledge to help you manage your startup’s cash flow.
You do not have to intimately familiar with every possible financing option. Peter J. Burns III can connect you with specialists who will provide you with the best solutions for your startup, from shelf corporations to rapidly re- scoring your credit.
Learn More About Peter J. Burns III
Article by L.K. Bright, MLS & MLIS