Should Every Startup Invest In Financial Services?

by | Mar 29, 2022 | Startup Tips

Should Every Startup Invest in Financial Services?

“No matter how brilliant your mind or strategy, if you’re playing a solo game, you’ll always lose out to a team.” This quote by Reid Hoffman exactly pin-points why Startup companies need to invest in financial services.

Not sure if you are a “startup” or a “small business”? Well if you are a company that is intent on growing as fast as you can then you are most likely a “startup”. Still, there is significant risk in growing your company by playing ball hard and fast. You lose time, need to keep investors and banks happy, and create a financial plan for your future. 

should every startup invest in financial services?
should every startup invest in financial services?

There are so many things to juggle when it comes to running a company. Budgeting can be hard and not everyone has a talent with numbers. Being in the red can be scary. Some decide to outsource, while others choose to go ahead and take on this task themselves. So the question remains: should every startup invest in financial services?

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More On Financial Services As A Business Investment

Financial Planning

So first let’s define “Financial Planning”. This is where you make a plan, or guide, to show how your money and other assets will help you meet your money goals. When you are running a startup company, you want to make sure all of those financial needs are being met. Fundamentally, some startups are more profitable than others. However, the formula and theory is essentially the same.

This is where hiring a certified accountant can help you. Certified accountants are trained to look at your business costs and project how to help your company grow in the best way possible. Financial analysis may, also, not be your strong suit. Outsourcing to your financial team can help make sure all your ducks are in a row, especially when it comes to things like loans or investors. 

Building a financial strategy can help your accountant understand exactly what you need. This way, too, you can take your current situation astride. Depending on whether you are post or pre-funding your financial strategy and planning may shift. 

Doing It All Yourself

While doing it yourself could save you some money, in the long run it may be more trouble than it is worth. As the head of your company, you have so many other items on your “To DO” list. Finances and number crunching can take time, and there is room for error. Knowing how to delegate those financial tasks to trained employees or third party sources can help you save time. And you know what they say, “Time is Money”. 

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Protecting Your Company

There are many difficult risks to creating a startup company. Some of these can be 

  • Bankruptcy
  • Financial 
  • Economic 
  • Risk of the unknown
  • Theft
  • Funding

By investing in a third-party financial service, you are reducing those risks. They can help you create a financial forecast and even a budget to help keep an eye on your day to day operations. Reports can be created to keep banks and investors happy. Financial data can be translated in a way that helps you understand exactly what you are looking at. 

By outsourcing and investing in financial services you can reduce theft to your company as well. Financial services are there to make sure an ear is always on the heartbeat of your company. 

Other Things They Can Do for You

Still not convinced? Here are a few more items that a financial service can help you navigate:

  • Cash-Flow Management
  • Bookkeeping and Accounting
  • Cash Forecasting
  • Payroll Solutions
  • Staying in financial compliance
  • Creating the financial foundation for your rapidly growing company. 
  • Key Milestones

All of these items are instrumental to making sure your company grows smoothly and without tons of risk. They can help you create a budget that will allow for all these items to be made a reality. Either way, it’s probably a good idea to speak to either an accountant and or a bank manager. They will know best how to guide you. 

How Startup Tandem Can Help

If you’re reading this blog post, you may be wondering if your startup should begin to invest in financial services. Perhaps you have a business that has taken off and you need an expert to help you scale. Or perhaps you’re not quite where you need to be. Maybe you are burning a hole in your wallet and are feeling the affect of not having a strong financial backing.

Whatever the case may be, Startup Tandem works with businesses in every stage of development. We provide affordable solutions and meet clients where they are at. You can learn more about our service packages here.

Learn more about Startup Tandem and how it works. Give us a call at your convenience for a free consultation on services. We look forward to making you our future financial partner!

best financial services for startups
best financial services for startups

Conclusion: Should Every Startup Invest In Financial Services

Startup companies grow at neck breaking speeds. Their entrepreneurial owners have a lot on their plates in order to keep the company growing at a steady, yet fast pace. Investing in financial services such as a certified accountant can calm some of those choppy waters. 

The financial services can allow entrepreneurs more time to dedicate to the actual running of their companies. They don’t have to worry about managing cash-flow, payroll solutions, financial analysis or other accounting issues. It also allows entrepreneurs to sit down with a professional and create financial plans and projections for their future. 

Still, every entrepreneur and startup is different. Some people feel more comfortable starting off doing the finances for themselves with a third party bookkeeper. If this is the route you choose, maybe consider investing in a financial service down the road. It may be worth it. 

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