Startups need to have a good grasp of the financial basics. If you’re seeking financing from bankers or investors, key startup accounting records such as income statements (income and expenses) and financial projections will help persuade others that your idea is worthy of investment.

Startup financials often come down to one simple equation. Either you have cash or you’re in debt. Cash flow can be difficult for new businesses. It is important to keep an eye on your balance sheet and not overextend yourself.

You’ll require equity or debt financing to expand and make your business profitable. Investors will look at your business plan, the projected costs and revenues, and the probability of getting a return on their investment.

There are numerous ways to help you bootstrap your startup. From obtaining the business card that has an introductory 0% APR period to crowdfunding platforms, there are plenty of options. However, it’s important to take note that the use of credit cards or debt can hurt your personal and business credit score. You should always pay off your debt in time.

You may also take out loans from friends and family members who are willing to invest. This may be a great board room option for your business, but you should always put the terms in writing to avoid any conflicts and ensure that everyone understands what their contribution will be affecting your bottom line. If you give an individual shares of your business they’re considered to be an investor and has to be governed by securities law.