1 Set up an expense account.
This is where the majority of your funds should be to cover your everyday business expenses. You should also use this account to pay down any debt you might have.
2 Price Strategically.
The first thing you should do before pricing your products/services is to calculate your break-even point. This is where your sales income equals your costs of goods sold. At a minimum, you want your sales to cover your costs.
First things first. As I mentioned earlier, if you want to maintain a positive cash flow as a startup you need to save! I would highly suggest you open a separate savings account and allocate a fixed amount of your income towards it on a weekly, bi-weekly, or monthly basis.
4 Explore Your Financing Options.
Before cleaning out your wallet, you should look into the many forms of financing available. The top financing options to maintain a positive cash flow as a startup are the Business Development Bank of Canada (BDC), Futurepreneur, Canadian business grants, and crowdfunding.
At Waterdown Bookkeeping and Accounting, we are experienced accounting professionals. Although, our firm was at the startup phase not that long ago. We can relate to your highs and lows, and we want to take some of the pain away from the accounting side of your business. at Waterdown Bookkeeping and Accounting helps startups like yourself grow into successful creative professionals. If you’re interested to see what we can go for you, contact us.