A room full of entrepreneurs will agree, that sometimes all it takes is a really good business idea, and everything else just falls into place. However, most of the time, the idea has to be worked and re-worked in order to turn into a well-calculated risk! Growing a business happens in stages. Like a sapling freshly planted in the ground, a new business requires a lot of attention before it is financially self-sufficient or stable. The story of the entrepreneur losing financial ground in its first or second year is a reality that may be construed as apathetic ownership or just plane ambivalence. The bottom line is, no one expects it to happen to them—and they shouldn’t… If they are keeping track of their finances correctly and exercising a great deal of financial discipline, even the toughest soil can produce a flower.
Best practices for startup, after your launch:
- Do another solid review of your business plan. It’s important to look past the initial excitement of “lift-off”, with another hard look at your destination. When products and services sell, clients begin to notice your brand more, and as the onset of a larger bank account begins to occur, it’s easy to get caught up in best case scenario planning. Stay positive, but balance is key. Be ready for the inevitable fluctuations that come with any business, by knowing a year or two in advance what any major decisions will be
- Have a solid plan for the varying products/services you will be willing to sell
- Decide on a list of top items/services you will need to best support your business within the next year
- Decide on the number of hours you will be willing/able to work per week—avoid burnout
- Hire a professional Bookkeeper. Making sure you have a dedicated financial team readily available to advise you, saves a lot of time and frustration when choosing how to spend, invest, and save your money wisely. Imbalances in overstocking supplies, company investments, or simply overpaying on credit cards can easily put any entrepreneur at square one again…or in serious debt. Getting the help of a professional not only propels a business forward but also gives YOU the tools to make better-educated decisions on how to stay in business.
- Regularly schedule times to review your finances with a pro
- Get help in pricing your products or services correctly and effectively
- Learn the best times to take on employees
- Know how much money to save for future set-backs
- Learn when you are being your most profitable and how to streamline that
- Decide on important vs least important expenses, and when to take care of them
- Utilize the Profit First Method for cash management. The naturally used bank-balance accounting (which many entrepreneurs are so familiar with) is implemented by author Mike Michalowicz in a way that supports any entrepreneur to be a financial success. Engage with a certified Profit First adviser who can take you through the steps of using this simple cash management system to your business’s advantage.
- Take the Profit First Professionals tour, and educate yourself on this amazing and truly ‘Profit First’ method which benefits owners AND their businesses
- Learn which local banks in your area support Profit First
- Learn what the 5 essential bank accounts are, to implement the Profit First method in your business.
Whether you’ve got a solid business plan or not, keeping track of your finances is key to knowing your next step. AccountSolve can help you take care of your moving money parts. Schedule a free consult with us today.