Starting a new business is an exciting but challenging endeavor, especially for women who are increasingly seeking alternatives to traditional employment. In recent years, significant efforts have been made to support women entrepreneurs, including JPMorgan Chase’s $10 billion lending commitment to women-owned small businesses in 2019. Yet, despite these initiatives, women continue to face unique challenges in the workforce, exacerbated by economic crises. According to a report from McKinsey & Co, women’s jobs are 1.8 times more vulnerable to crises than men’s, with women making up 39% of global employment but accounting for 54% of job losses.

For women looking to take control of their careers and gain financial independence, entrepreneurship offers a pathway to flexibility, empowerment, and success. However, navigating the startup phase can be tricky, especially when it comes to managing finances and cash flow. Here are seven tips to help guide you through the early stages of launching your business.

1. Manage Your Spending

It can be tempting to spend money on marketing, courses, and other “shiny objects” that seem necessary to grow your business right away. However, in the beginning, it’s crucial to be cautious with your spending. Focus on the essentials that will lay a solid foundation for your company, and avoid unnecessary expenses. Keeping your budget tight at the start ensures that you have the cash needed to sustain your business during its critical early stages.

2. Avoid Overestimating Sales Goals

The excitement of launching a new business can lead to overly optimistic sales forecasts. While it’s natural to be enthusiastic, it’s essential to stay realistic about your initial revenue. Overestimating sales can put undue pressure on your business and lead to financial strain. Instead, plan conservatively and prepare for slower sales. If you surpass those projections, great! But being prepared for lower-than-expected sales will help you manage expectations and maintain control over your finances.

3. Manage Cash Flow Carefully

Cash flow is the lifeline of any business, and mismanaging it is one of the top reasons startups fail. Even if sales are slow, you’ll still need to meet your financial obligations, such as payroll, rent, and operational expenses. That’s why it’s critical to manage your cash carefully and operate on a strict budget. Prioritize essential spending and ensure that you always have enough funds to cover your immediate obligations.

4. Don’t Confuse Cash with Available Funds

It’s easy to look at the balance in your bank account and assume that it’s money available for spending. However, it’s important to remember that you likely have future obligations—such as taxes, rent, and payroll—that must be paid. To avoid confusion, set up a cash management system that forecasts your upcoming expenses and gives you a clear picture of how much money is truly available to spend. This way, you won’t be caught off guard by unexpected costs.

5. Keep Personal and Business Accounts Separate

Many new entrepreneurs make the mistake of mixing their personal and business finances, which can create confusion and make bookkeeping a nightmare. Always keep your business and personal accounts separate. This not only simplifies your bookkeeping but also creates a clear audit trail if your business is ever subject to government scrutiny. Separate accounts also help you track your business’s financial health more accurately and avoid unnecessary complications.

6. Always Operate with a Budget

A budget is essentially a financial plan for your business. Without one, you’re operating without a roadmap, which makes it difficult to reach your goals. A budget helps you set revenue targets, estimate the expenses necessary to reach those targets, and determine how many sales are required to break even or achieve your desired profit levels. Having a budget in place provides direction for your business and helps you stay on course, even during challenging financial periods.

7. Keep Accurate and Up-to-Date Books

Accurate record-keeping is essential to understanding your business’s financial position. If your books are not up to date, you risk making decisions based on faulty information, which can be costly. Consider investing in a professional bookkeeper to ensure your financial records are accurate and compliant with accounting rules. This will provide you with the financial data you need to make informed decisions and avoid costly mistakes that could hinder your business’s growth.