Starting a small business is about more than putting an idea into action. In order to be successful, you need to manage the execution of that idea so that it is profitable. That includes overseeing your own actions as well as setting up a structure for your operations that allows you to scale up as your business gains a foothold.
Preparing to Succeed
Having a formal plan in place will help you achieve success for your business, but the real preparation starts far sooner, with the realization that you cannot do everything yourself. You will have to start outsourcing some of the tasks you do every day or learn to delegate those activities to trusted staff. Odds are bookkeeping is going to fall under this umbrella. It is something that needs to be done but there is no reason that you have to be the person to make each entry in your ledger, send out invoices, enter payments, and pay bills. You can hire a professional to handle your accounts payable (A/P) and accounts receivable (A/R) for you. With A/R and A/P Staff, you can have zero worries with bill payment and billing your clients.
You also need to have a contingency plan for when things go right. Growth is more than just hitting a certain profit margin or sales volume. True growth forces you to change the way you do business. Part of preparing for business success is making sure that you have people on staff who you could groom into management roles or that you have researched how you may be able to outsource those activities without risking your core business.
Take your accounting, for instance. If you don’t already know how to manage your books, take a QuickBooks training or hire a bookkeeping service to manage it for you. In the beginning, you will not have enough transactions to justify hiring a professional but that doesn’t mean doing it yourself is a valid option. Hiring a professional to do it will cost you less money in the long run. The time you would have spent doing your books can be put towards activities that will help grow your business, like meeting with clients and doing the actual work that gets you paid.
Setting Up Financing
You will also likely need acquire some amount of financing to harness those growth opportunities, be it paying for extra inventory, buying additional equipment, or purchasing another location – but all that doesn’t come so easily. To set the groundwork for future financing, you’ll need to prove your ability to grow.
Make the process easier by taking the steps to start establishing a relationship with lenders and creditors today. Your company deserves a bank that can help it grow and support it at every step of the way with banking and financing options that make sense for your needs. In addition, you will need to make sure that your books illustrate your company’s success. Proper bookkeeping can go a long way towards making your case with a bank or lender.