Startups should have a solid understanding of the financial basics. If you are trying to convince investors or banks that your business idea is worthy of an investment, important accounting records for startups like income statements (incomes and expenses) and financial forecasts can help.

The financials of startups typically boil down to a simple formula. You either have cash or you are in debt. Cash flow can be a challenge for young businesses. It’s important to monitor your balance sheet and be careful not to overextension yourself.

As a start-up it is likely that you organizing an internet fundraising campaign will need to look for debt or equity financing in order to grow your company and ensure it is profitable. Investors will be looking at your business plan, projected revenue and expenses, and the likelihood of getting the return on investment.

There are numerous ways to start a startup. From getting the business card that has the introductory rate of 0% to 0% period to crowdfunding platforms, there are a myriad of options. It’s important to remember that the use of credit cards or debt can affect your credit scores. It is essential to make sure to pay your debts on time.

Another option is to borrow money from family and friends who are willing to invest in your company. While this is the best alternative for your startup however, you must write the terms of any loan in writing to avoid conflicts and make sure that everyone knows what their contribution will mean for your bottom line. If you offer an individual shares of your business they’re considered to be an investor and therefore need to be governed by securities law.