5 Things a small business should avoid – Part 2 Money and Accounts Management.
In common with a lot of our customers, we are a growing SME business and as such are currently, or have previously experienced a number of the same issues. These are as many and as varied, as is working for yourself, but in this series of posts, we will look at 5 things that we think are key to building a growing business.
2. Money and Accounts Management
3. Fatigue
4. Founder Dependency
5. Balancing Quality with Growth
In our last blog we focused on the importance of having a breadth of customers, with a wide range of projects of differing values and complexities to achieve a relatively consistent in-flow of projects. Now we look at what is probably the one thing that every new business owner worries about, money management.
Having enough cash to cover the bills is essential for any business, but it is also a must for everyday life. We have met several business owners who work extremely long hours and admit that they only pay themselves a fraction of what their employees earn. Whether it is your business or your life, one will probably emerge as a capital drain that inevitably puts pressures on the other.
To mitigate this problem, small business owners must either arrange additional capital to be brought in through loans or overdrafts or be able to pick up extra income to shore up cash reserves when needed. Therefore many, but not all, small businesses start out with the owners carrying on with their current employment while simultaneously building the business. While this split focus makes it difficult to grow a business, running out of cash will make it impossible.
Once cash is flowing into the business, then Money Management becomes even more important. Although handling your business accounts and even completing the increasing complicated taxes may be completely within the capability of most business owners, in our hard-earned experience, professional help is always a good idea and in the long run can save you money by not paying unnecessary taxes. This help becomes increasingly important as the complexity of a company’s books increases almost exponentially, or so it appears, with each additional client and employee, so not taking on bookkeeping services can become a hinderance to business expansion.
Creatively Yours…
Creatively Yours Ltd helps businesses like yours succeed online through website design, website development, and our Helponomics system that offers support and training as you need it and highlights areas that could increase your sales.
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