The fitter the sailor is, the tougher the sail. Only the fittest survive in the teeming economic pool of new companies blooming everywhere. With the animosity and severe rivalry that new start-ups confront in the market, the rule of survival of the fittest is one that every participant should be aware of and manage accordingly. To give you an idea, there are over 150 million start-ups around the globe today, with over 1,37,000 new ones being created every day! Here’s how to endure the raging waves of flowing competition.
To stay afloat and overcome the competition, you’ll need to keep track of your finances. There are no established financial management systems in place for start-ups, therefore there is always a risk of employers overpaying their staff when getting extra things done for normal chores and manually paying personnel. As a result, businesses frequently spend more than they should or have budgeted for, resulting in losses. There is also a complete absence of accountability and openness.
Can you foresee a solution to all of these problems, a reprieve from the financial woes and deficits? Prepaid cards are an all-in-one answer to these issues. At the touch of a button, you simply load money in any amount you desire, anywhere and at any time. You can keep track of every transaction, whether it’s a salary transfer to your staff or recurring payments. This reinforces responsibility and openness, allowing you to better manage your budget and overall resources. Let’s go a bit more into prepaid cards to see how they may be so beneficial and solve a variety of difficulties. After that, we’ll look at why BankIT cards are the finest in their class.
Pain Points For Start-up Employees
Limited or Inconsistent Cash Flow
The cash shortage is the most prevalent problem that all small businesses face. As a result, cash flow management becomes even more difficult. Everything from keeping track of all bills and invoices to ensuring that the money coming in is more than enough to pay monthly recurring and other expenses must be taken care of. This is especially annoying if the expenses keep piling up or if there is a cash crisis. As a solution to this problem, cash flow predictions should be created by tracking and mapping previous performance based on criteria such as changes and discrepancies in the present context. It’s critical to consider several probable eventualities, such as economic downturns, fluctuations in market trends or customer behavior, or changes in the sector as a whole while creating these and coming up with a highly realistic financial strategy. This should be at the top of every company’s priority list, and it should be integrated in the same way that to-do lists are.
Transparency
Employers are certain to miss a transaction here and there with manual processes in place. When keeping track of spending, keep in mind the possibility of human mistakes. The lack of any documentation, digital or otherwise, and relying solely on word of mouth has resulted in a great deal of misunderstanding and distrust, as well as financial losses for businesses. Employees might easily defraud their employers by submitting recurring invoice bills for tasks and exploiting the lack of concrete documentation.
Not Using a Budget
If you own a business, you should make sure that whatever money you put into it from your own pocket is enough to see you through each month’s expenditures. If you don’t stick to a strict budget, it’ll only be a matter of time before you don’t have as much money coming in as going out, causing your obligations to pile up. Financial duties should be managed in a well-coordinated and well-planned manner. You can’t afford to lose money on the side and let your business suffer as a result. Create and stick to a budget today since it not only allows you to prepare for the future in terms of investments, trend analysis, and rapid adaption when necessary, but it also allows you to maintain enough room to meet any eventualities and even have enough left over to expand at the end of the month. However, being able to make excellent business judgments requires continuously revising your budget to meet the demands of the markets and trends. A budget must be active rather than a static document that may be discarded after completion. The most essential thing to remember is that your financial allocations should be flexible. should be a live document rather than a static document
No Preparation for Unforeseen Expenses
One must constantly be prepared for the future, especially for what we cannot predict in the near future, as these unanticipated costs can make or break total performance at any time. They have the ability to ruin even the best-laid strategies of any small firm. Having an account where you can set aside money on a regular basis for any eventuality and access it at any time may help a lot. Rainy day funds are the popular name for such savings. When things are going well, you may easily set away monies that will increase over time and then use them when you need them. The major USP of such funds is that they can truly assist small businesses and start-ups in navigating through difficult times while keeping debt to a bare minimum. Savings in the form of interest payments on such accounts can add up to a lot of money.
Petty Cash Management
When you’re running a small business or a startup, every penny matters, therefore even minor costs might add to the company’s obligations. Allow for large outflows of capital for start-ups, such as paying freelancers, offering incentives and advances to staff, and dealing with a variety of variable charges that may or may not be recurrent. All of them are simple to deal with. To keep track of each and every minute cost, all that is required is a synchronized and efficient flow of cash.
Overspending
Without any equipment or plans to put down the necessary financial allocations and strategies, there’s a good chance you’ll lose track of your costs and wind yourself in debt. This, along with unplanned expenses, can result in massive deficits for businesses and, as a result, chronic financial mismanagement, causing them to spend above their means.
Phishing cyber attacks
In this digital era, with the rapidly developing technologies and innovations that greet us every day, there has been an unprecedented rise in cyber phishing attacks via hacking, scams, and other means, and for small businesses and startups, surviving these challenges is a major challenge given the vast amount of money and resources invested. They must be extremely nimble in order to resist all of these online attacks and threats, as well as hunt for hackers who are basically everywhere, seeking opportunities to exploit any system flaws. Unauthorized access to sensitive and personal information held by start-ups can lose people millions of dollars, or perhaps their whole careers, as well as administrative records and paperwork. As a result, these phishing threats are most likely the most dangerous.
Unrealistic Expectations
Success brings with it a set of expectations. Most of the time, these expectations are reasonable, but there is a delicate line between reasonable and unreasonable demands. This is especially true for small firms and startups that have had brief bursts of tremendous success. This is intended to keep you and your team engaged, but it may backfire if you overestimate your success without considering sustainability, and new expenditures should never be made hastily. One should constantly be aware of their existing resources, the level of their development potential, and a variety of other market elements.
Cumbersome Process
Using manual transactions for every transaction takes a lot of resources, which are scarce in start-ups and small enterprises. It appears much more boring and burdensome in this digital day when there are far quicker options accessible. In reality, digital transactions considerably improve the accountability and transparency of all your transactions because they can be completed at the press of a button.
Safety and Security
Because currency must be carried about in manual transactions, there is always the danger of misplacing it, as well as the possibility of theft. When we use prepaid cards, however, we don’t have to carry the card around with us all the time, and we may quickly block the card and halt any transactions if it is stolen. This also applies to security breaches caused by cyber phishing assaults, making prepaid cards far more secure and safe to use.
Why and how prepaid cards can help mitigate these financial challenges
When it comes to determining the most cost-effective financial instrument for your company, prepaid cards are an absolute requirement! A startup must ensure that the financial solution they choose provides them with a variety of perks and qualities, the most desirable of which is the ability to grow. The following are the benefits of using prepaid cards:
- Security and Safety
- Trustworthiness and dependability
- Easily traceable: real-time monitoring is ensured.
- Flexibility: money may be loaded at any time and from any location.
- Through accountability and openness, provide budgetary control tools.
- Excellent customer service and ease of use
