Starting your own small business can be one of the most liberating and simultaneously terrifying things you’ll ever do. That is in part because small business owners work long and hard to reach their goals with incredibly mixed results. That doesn’t mean your company has to go that way, though. If you’re looking for small business success, here are three must-do thing to ensure your financial security as you grow your business.
Find Real Financing
Borrowing against your home or putting your life savings into your business is a risky move. Like it or not, many new businesses aren’t going to succeed, and the ones that do are going to encounter their own challenges along the way. Putting too much of your own money or assets into your business can leave you in dire straits, which is why it’s important to secure external funding for your business.
If you have a strong business plan and good credit (or a reliable cosigner), a small business loan could help you get the cash you need to get off the ground. Be prepared to be prepared, though. You’re going to need to prove you’ve got a good model for your business and that you have ways to pay your loan as your company is still growing. If a traditional loan isn’t for your endeavour, something more creative like crowdfunding might work. If you’ve got low overhead, you might even want to consider getting the cash directly from your clients with advanced invoicing or product presales.
There are lots of creative ways to find the cash to sustain your business without tapping into your bank account. Pick one of them. You’ll be thankful you did regardless of whether your business is an instant success or hits a few speed bumps along the way.
Take Care Of Your Employees
Especially if you’re just starting out, the cost of training, benefits, and retirement plans might seem like a big expense, but trust that this is one you shouldn’t be scrimping on. The cost of offering benefits to an employee is high, but not as high as the cost of having to repeatedly train new employees and lose out on valuable time you could be spending on other operations in the process. Employees will follow the best opportunities you can get. Offer them financial security of their own, and they’ll be more likely to stick around. Don’t offer the stuff the valuable hires want and you risk high staff turnover or a steady crew of less-talented, less capable employees.
Be Meticulous About Your Books
A simple budgetary spreadsheet won’t perform the way at work it does at home. Enlist the help of a professional accountant and/or train yourself on something like Quickbooks and get good with financials – fast. Keep record of everything, even free things, that come across your business. Be more than methodical about your books – be obsessive. The more accurate and detailed your records, the less you have to worry about whether the IRS is knocking, you’re trying to track down a less than scrupulous employee, or you’re just trying to set better spending goals for your business.