Getting started with money: 6 ideas to frame financial strategy for business

It is hard to think of a startup that has survived more than five years without a glitch. And as the long-time financial expert in a multinational firm John Cusack points out, only one-third of new businesses make it to their 10th year. If you want to know a single measure of these businesses success, here it is: having a well-devised financial strategy. Today, those startups include dozens of famously successful insurance companies, delivery techs and service firms. The result is that a few thousand dollars invested are worth multi-millions.  The key to a business’s growth is having adequate financial planning at every step of the way. And because finance plays a crucial role in everything you do in the business, you need to tread carefully. Some of the steps you can take include, but not limited to: 1. Finding the Balance If you have learned one thing from other businesses, it is that there is a clear-cut rule in establishing a value proposition by setting prices for products or service. Why do customers prefer one business over another? One of the major reasons is the price. Data suggests that businesses that have set their prices to a reasonable or low level have a considerable chance of gaining new customers and retaining existing ones.  There are complex factors that determine a price for an item in any business. And setting the price is not at all random. It is based on overhead cost. More to the point, when prices are low, customers are attracted to… Read More