Startups must have a solid grasp of the basics of finance. If you want to convince banks or investors that your business idea is worthy of investment, key documents for accounting in the beginning, such as income statements (incomes and expenses) and financial forecasts can be helpful.

Startup financials often come down to a simple equation. You either have cash or you’re in debt. Cash flow can be difficult for new businesses. It’s essential to watch your balance sheet and not overextension yourself.

If you’re a new business you’ll most likely have to look for debt or equity financing in order to grow your company and ensure it is profitable. Investors will usually look at your business model, projected costs and revenue and the possibility of a return on their investment.

There are a variety of ways to bootstrap a startup, from getting an enterprise credit card that offers an introductory rate of 0% to crowdfunding platforms for a brand new business. But, it’s important to take note that the use of debt or credit cards can affect your personal and company credit score and you this page should always pay off your debts on time.

Another option is to take money from friends and family who are willing to invest in your venture. This could be a great option for your business, however you should always put the terms in writing to avoid any conflicts and make sure everyone is aware of what their contribution will impact your bottom line. In addition, if give the recipient shares in your company they’re considered to be an investor, and thus need to be governed by the law of securities.