How to Conquer Business Finances at Different Stages of Growth

Your business is doing well and revenue is growing, but this growth brings in new challenges. When that time comes, there is no need to get overwhelmed. You can effectively manage your business by following proven tips we shall be sharing in this guide. Tow trucks in Virginia Beach presents an example of players who have been on the forefoot on proper business management at different growth stages. As a business grows, finances become more complex and challenging. However, with some preparation and investment in the right tools, you can conquer any challenge.

Here are ways to go about it.

1. Put your finances in order

There are three critical stages of business growth and each of these stages presents its financial challenges. The first stage is getting your business off the ground. At the earliest stages of your business, the biggest challenge you will face is cash flow. As you generate business and develop trust with your clients, you may find yourself spending more than you’re making. The solution to that challenge lies in proper planning and measuring. Another challenge you will face deals with invoicing and tracking expenses and the solution to that is having a centralized accounting software.

While scaling your business, you will be faced with the challenge of managing a growing client base. The solution to that problem lies in automation. When it comes to accounting, it becomes more complex. This is where you invest in bookkeeping. At the last stage is having an established business. The key challenge you will face is resources. You need to make sound long term financial decisions.

2. Building your team

As your business grows, you will need to decide on how to manage your finances. One important person you will need is an accountant. A good accountant will offer tax advice and help you to file tax returns. He will also help you in determining the right accounting system and processes. They will also help you in setting up a payroll system and applying for business loans.

Plan and review your business financial reports

Whether you have established a working relationship with a third party accountant or an in-house expert, as a business owner, you also need to have visibility on the financial health of your business. You must know financial reports inside out. You may not need to analyze the numbers, but you must be able to identify the trends as well as all red flags such as unusual gains and losses. You must be able to tell if your business is healthy or not. Important financial reports you must read include; Profit and Loss Report, Balance Sheet, Cash Flow Statement, Statement of Financial Position, among others.

Stay flexible

Steady growth in your business may bring certain levels of stability in terms of revenue and direction of your business. As your business grows, you need to remain flexible so that you can maintain flexibility. You must be willing to adjust your business plan and operations accordingly. Be willing to learn and adapt to any changes affecting your industry.

Scale Your Business by Making the Best Use of Your Team

Being an entrepreneur involves a lot of things. In the beginning, you work for long hours, make big decisions, and give your team everything they need to succeed. However, at some point, you need to ease off lots of work on your desk so that you can concentrate on other tasks to scale your business. That is the same path founder followed until making the business to its current state, with good management and lots of delegation. This is where effective and strategic delegation comes in.

Delegation is not easy but it is very necessary. Here are some important tips you can incorporate to make delegation smooth and effective.

Choose the right tasks

Entrepreneurs who have built a business on their own often have hard times trusting others to carry out tasks on their behalf. When you look at it from that perspective, it becomes a risky thing to do. It is important to delegate tasks that take up your time, by not your powers. You can start by logging everything you do in a week and figure out the tasks that you can delegate. You can delegate tasks that you are not so great at, very urgent tasks, or those that you don’t have enough time to deliver on.

Try the 70 percent rule

You need to recognize that most entrepreneurs have a hard time letting go. If you find out a team member can perform the task at least 70 percent as well as you can do, then he becomes a prime candidate for delegation. You will only need to work with the team member on the remaining percentage on their perfection.

Pick the right person for the job

The successful delegation will happen when you pick the right person for the job. If you need to hire someone to take over programming functions, look for people who have those skill sets. If you want to delegate internally, evaluate the skills your team members have, and see who has the closest to what you want. Consider the personal career goals of your staff members and how their role within the company may evolve.

Communicate effectively

When you are asking a new team member to take a new task or responsibility, it is a good idea to start the conversation by expressing your confidence in their ability to complete the task you will be delegating to them. You need to delegate 100 percent of the responsibility for the task and not just pieces of the task. Doing so will make the employee feel more competent and have the confidence to handle the task at hand.

Invest in teaching and training

You can put your team in the most suitable situation to deliver on any task by ensuring you invest in their development and give them the resources needed for their success. Call them to watch as you deliver a task and let them learn from you. Trust them on the tasks you delegate to them and correct them when they make mistakes. When a project is complex, ensure you walk them through the whole process so that they can deliver to expectations.

Benefits of a Local Business Website

Nowadays, the internet has influenced the way we work and live; but it is surprising to know that only few business owners have developed a website for their products and services. It is sad that only 46 percent of businesses own a website. This statistic is shocking when you realize that an average person spends 6 hours on the internet per day. According to survey conducted in 2014, 41 percent of local business owners claim they don’t need a website. This means that they are probably not aware of the many benefits of having a website.

Online Marketing

The online world is evolving at a fast pace, therefore, having a website is a must – particularly for small local businesses. If you desire to have more clients, you need to have an online presence so your potential customers can see information regarding your products at the click of a button. Without having a website, you’ll fizzle out over time. The several benefits of having a website include:

1.Improve the credibility of your business

Your website becomes your online business address. It is the place that clients, customers and business associates go to get in contact with you online or get some information regarding your company. The Home page of your the website shows the value of your brand, and the About Us page communicates to visitors about who you are and what your business is all about. It also has contact information for people to quickly get in touch with you.

A website will make your business more legitimate, thereby improving your credibility. It serves as a virtual proof that your business exists and it gives it an identity. Although having a social media account is important, that is not enough to establish some credibility. According to a survey conducted in 2015, 84 percent of clients think that having a business website gives your business better credibility that just having a social media page.

2. Cost reduction

When you have a website, you can be cutting on the cost of shop rent, utility bills and hiring addition staff. You can directly liaise with a customer to have their products delivered right at their doorsteps for a fraction of the cost.

3. Better customer service

It is no doubt that owning a website will greatly improve your communication with your customers. It is not possible for a store owner with staff members to oversee and observe them throughout the day to see how they interact with customers. But in the online world, nothing stays hidden. You can monitor the work of your staff and make sure customers receive a quick and helpful response.

4. Improve your online presence

Out of the population of the world, 47 percent of them make use of the internet daily. They are constantly sharing on social media platforms, searching for information or buying products. As the world becomes more dependent on mobile technology, this number is expected to grow. As a local business owner, if you don’t have a website, you will be undermining your ability to generate more income.

In conclusion:

Your website is one of your strongest marketing tools. It can give you an advantage over your competition and improve the image of your business. As a local business owner, you have to make sure you website is designed professionally and is fully functional with great content and quick download speed.

This article is sponsored by Orlando Towing & Recovery