Starting a business is exciting but also challenging, especially when it comes to finances. Here are some essential financial tips to help new small business owners navigate the first year successfully. One tip that you won't see here but you should ensure you do - ask for help! Talk to peers and fellow small business owners and don't be afraid to ask for advice.

Financial Tips
Budget, Budget, Budget
Why: Helps you know where your money is going
How: Categorize expenses and set limits - remember limits are there for a reason try not to go over them
Pro Tip: Use tools like Starfish to understand and benchmark costs
Emergency Savings
Why: Unexpected costs can cripple your business
How: Save at least 3-6 months of operating expenses
Keep Business and Personal Finances Separate
Why: Easier accounting and potential tax benefits - speak to your accountant about this for concrete numbers and facts around this
How: Open a business bank account and get a business credit card. I just did this through Chase and it took less than 10 minutes!
Cash Flow Is King
Why: Cash flow problems are a top reason small businesses fail
How: Invoice promptly, monitor accounts receivable, and keep reserves
Negotiate with Vendors
Why: Lower costs mean higher profits. Every $1 in costs that you save is a $1 in additional profit
How: Don't accept the first price; ask for discounts or payment terms. Payment terms = cash flow and as you see above. Cash flow is king!
Monitor and Adjust
Why: Business environments change. Change is the only constant!
How: Regularly review your budgets, cash flow, and savings
Seek Professional Help
Why: Expertise can save you money in the long run
How: Consult an accountant or a financial advisor specialized in small businesses
Your first year in business will be full of highs and lows. Financial planning and management are key to ensuring you’re still standing when year two comes around. Starfish can help you understand, benchmark, and lower your costs effectively. Here's to a financially healthy first year!