Startups require a thorough understanding of the fundamentals of finance. If you want to convince investors or banks that your business idea deserves investment, crucial startup accounting records such as income statements (incomes and expenses) and financial forecasts will help.

Startup finances often boil this website down to a straightforward equation. You either have cash or you’re in debt. Cash flow can be challenging for new businesses. It’s important to monitor your balance sheet and be careful not to overextension yourself.

In the beginning, you’ll likely need to find equity or debt financing to expand your company and make it profitable. Investors will review your business plan, the projected revenue and expenses, and the likelihood of getting a return on investment.

There are many ways to get a startup started including obtaining an enterprise credit card that offers an introductory rate of 0% to crowdfunding platforms for a brand new business. It is important to keep in mind that using credit cards or debt can negatively impact your personal and business credit scores. Always pay your debts on time.

Another option is to take money from family members and friends who are willing to invest in your business. This could be a great option for your company, but it is important to put the terms of your agreement in writing to avoid any conflicts and make sure everyone understands what their contribution will mean for your bottom line. In addition, if offer someone shares of your startup they’re considered an investor and therefore need to be governed by the law of securities.