Startup Financial Challenges

According to CPA Practice Advisor, only 40% of small business owners feel they are knowledgeable on finance. And unfortunately, the lack of knowledge in how to properly manage money catches up with business owners.

A challenge faced by startups involves acquiring enough capital. Many businesses accomplish this task by acquiring investors. However, with so many startups competing for investments, this can be a challenge.

Access to Funding

One of the best ways to bring in capital is to create a solid business plan and clear, concise financial records that you can show to potential investors with an interest in the company.

A steady cash flow ensures that you have what you need to hit the ground running. On the other hand, if the cash leaving your company exceeds the cash coming in, you are going to experience problems

Inconsistent Cash Flow

To minimize expenses, look for ways to reduce debt payments and/or lower the cost of inventory. To maximize revenues, invoice your customers as soon as possible and establish a clear, effective procedure for collecting accounts receivable

Startup businesses are overwhelmed with financial information. Keeping track of this, allows the business to optimize cash flow, pay taxes on time, evaluate the success of the business, attract new investors and accomplish other important tasks.

Keeping Track of Financial Information

To deal with this accounting challenge, small businesses need to invest in software to help them keep track of important financial information. Alternatively, startups can also delegate these responsibilities to a third party accounting service.

Accurate payroll is essential in order to avoid unexpected expenses, tax complications and other issues. However, establishing effective payroll procedures is often a challenge.

Handling Payroll

When start-ups don’t have the ability to handle this task in-house, outsourcing payroll to a third party is the best way to avoid problems.

Combining financial accounts can be problematic in the long run because you can mix up your funds and miss out on tax deductions. If your business does get audited, the mixing of your financial accounts could quickly become a nightmare.

Mixing Accounts

As soon as your business kicks off, find a way to separate accounts for every area of your finances, and never mix your personal and business accounts.

Indigenous business training program created by RedBird Circle Inc. in partnership with UofT Libraries, ICUBE UTM and The Bridge at UTSC

An experiential learning program that follows the school 3 semesters schedule, for anyone with a great idea who wants to make it happen.

A boutique-style remote program to support your business development and help you grow through one-on-one support. This program is open all year.

A student-led creative studio with intends to serve the prototyping and design needs of our ventures and small businesses in our community.

This 2-day retreat is designed to help you reflect on your journey, what drives you, all the hats you wear and what is next for you and your social enterprise.