Congratulations, entrepreneur! You’ve started a business. It’s not an easy thing to do, but you’ve taken the leap and here you are. You should be proud of yourself.
This wild, new adventure you’re embarking upon is just the right of mix of passion and pleasure, and will give you the freedom to live comfortably doing what you love.
Yours is a venture that’s going to take the world by storm. Before you know it, you’ll be raking in cash, with the financial independence to look after your children’s children, and be basking in that elusive lifestyle you’ve always dreamed of living.
Just one thing, though: That startup of yours?
It probably sucks.
Wait, what the— why are you telling me that my startup sucks?
Look, we don’t want to burst any bubbles, but let’s be real with each other.
In the US, for example, of the nearly 679,000 startups that were launched in 2015, just over half (55.5%) didn’t go down in flames by year five (2019).
And there are plenty of reasons why startups bite the dust — running out of cash, cost issues, and not having a business model are some of the most common among them.
So, if it makes you feel any better, the fact that your startup probably sucks actually puts you in the majority — but there are ways to fix that.
The harsh realities of not having proper accounting
Unfortunately, there are too many small business owners who give little to no consideration toward putting any kind of accounting system or procedures in place.
Blindly operating with either loose protocols (i.e. spreadsheets and a very base knowledge of an accounting software) or a complete disregard for accounting altogether can be the death knell for any business, year one or year ten.
Many owners who try to be a hero and do their own bookkeeping hate running the numbers because it’s daunting. It can buzzkill the fun parts of your job and cause you to work long, unnecessary hours that cut into your personal life.
Thus, it puts added stress on owners to ensure the numbers always line up and keep one eye on things like government liabilities (sales tax, income tax, etc.) at all times. In turn, this can also make getting loans or financial aid to support your startup impossible.
Having the right accounting structure in place, however, keeps you fully accountable for how much money your business can operate with before you begin seeing red.
Focusing squarely on your business and letting an expert accounting team take care of your bookkeeping needs allows you to make more educated decisions in the present and project growth more easily, free from anxiety.
It might sound bonkers, but a happy business owner equals a healthy business.
Taking the first step to having a startup that doesn’t suck
Even the best concept for a startup in the history of the universe, without a sound business model or properly managed cashflow, would be doomed to fail.
Businesses don’t go belly up because they run out of effort — they do so because they run out of money.
So, before you get too wrapped up in what your life will look like when your startup graduated to full-fledged “unicorn,” make sure you have the right accounting structure in place. Otherwise, your business will be lost financially.
Login today to cloudmeb.com and discover how our integrated cloud-based bookkeeping solutions can help your startup not suck.
It’s time you do your business a favor.