3 Ways Emerging Entrepreneurs Run Financially Sound Businesses

american entrepreneurs photoSecuring funding is a major feat for any brand and requires a great deal of planning and expertise. However, the real value comes from turning that initial support into long-term growth — transforming a spark into a sustainable fire. Without financial stability, eCommerce brands lack the foundation to tackle key business endeavors like evolving product lines, expanding geographic storefronts or making new investments into shipping and packaging that enhance the customer experience.

This is particularly true for emerging businesses transitioning from angel or first-round funding sources into companies with verified equity. These brands are no longer simply selling an idea but must be able to back their entire business model with a concrete financial plan.

As both the CEO of Dotcom Distribution and a CPA, keeping track of our financial standing is a critical component of managing a business — at any stage, but especially in the early days. With a lineup of clients funded heavily by private equity, I’ve seen my fair share of financial successes, as well as blunders. With 50 percent of U.S. businesses failing within their first five years, it’s important that any emerging company makes smart financial decisions.

Here are three tips I find valuable when helping entrepreneurs keep their brands out of finance troubles.

Photo by Tech.Co (formerly Tech Cocktail)

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