Basic Tips on Growing Your Business
According to the Small Business Administration about two-thirds of businesses with employees survive at least 2 years and about half survive at least 5 years. Coincidentally, the statistics hold true regardless of the state of the economy and industry. Don’t let your company be a statistic by implementing these five tips:
- Maintain a savings account!
Just like you personally “save for a rainy day” your business should be prepared. These past years have proven that the economy is volatile. Therefore, businesses should always be prepared for economic fluctuations. Additionally, consumer taste fluctuates. Unless your business sales a commodity or economic necessity, you should financially prepare your business for a downturn in sales.
- Invest in accounting!
Companies like QuickBooks have made it extremely easy and cost- efficient for business owners to keep their own books. However, hiring an accountant professional or outsourcing bookkeeping has its benefits. First, hiring a professional frees up the business owner to focus more on their business. Secondly, hiring a knowledgeable accountant/ accounting professional/ or business solutions company means you will benefit from that respective person/company’s knowledge. Therefore, your company may benefit from tax advantages you never knew of. Lastly, hiring a knowledgeable professional means better accounting records. So, no more scrambling around during income tax time. AND GUESS WHAT?? Better accounting records comes with the possibility of being able to claim more deductions on your income tax return.
- Invest in your business!
You acquired the capital to close the gap between your business vision and its manifestation. CONGRATS!!! However, it doesn’t stop there. Business’ require perineal investments. If an accountant or potential investor looks at your Cashflow Statement, the Cashflow from Investing section should ALWAYS be negative. The reason being, a negative cash flow from investing implies the business is investing in itself. As the owner of a business, your goal should always be to stay ahead of the competition and employ strategies that keep your business on the edge of technology, because technology means “CONVENIENCE” for your customers and youself.
- Establish Internal Control Procedures!
Internal control procedures are policies and procedures established to deter, detect, and prevent fraud. Fraud consists of embezzlement and anything to do with theft. This means that the employee at the point of sale has no opportunity to steal from. This could be costing your company thousands a year.
- Invest in your employees!
Employees are a company’s greatest asset. Employees ensure the daily objectives of your business are implemented. In most cases, employees are your front-line contact with your customers. Therefore, employees create your company’s first impression. As we all know, first impression’s last a life time. So, why not invest in your front-line people?