https://startuphand.org/2020/05/08/financial-startup-basics-for-business-owners/

Startups should have a solid understanding of the fundamentals of finance. If you’re seeking money from bankers or investors important startup accounting records like income statements (income and expenses) and financial projections will help persuade others that your business idea is worth investing in.

Startup financials often come down to a straightforward equation. You either have cash on hand or you’re in debt. Cash flow can be difficult for businesses that are just starting out. It’s important to monitor your balance sheet and be careful not to overextension yourself.

You’ll need equity or debt financing to expand and make your business profitable. Investors will scrutinize your business plan, the projected revenues and costs, and the likelihood of receiving a return on investment.

There are a variety of ways you can bootstrap your startup. From getting an enterprise credit card with a 0% APR introductory period to crowdfunding platforms, there are plenty of options. However, it’s important to keep in mind that using debt or credit cards can affect your personal and company credit score. You should always pay off your debts promptly.

You can also borrow funds from family and friends who are willing to invest. This is a good option for your company, but you should always write the terms of your agreement in writing to avoid conflicts and ensure that everyone understands what their contribution will be affecting your bottom line. If you offer someone shares in your business, they are considered an investor. Securities law applies to this.