3 Tips To Actually Help Build Your Business At A Comfortable Pace

We have all heard the horror stories of businesses that were off to a great start and then ran into operational challenges and poof they were no more.

A company called Wise Acre Frozen Treats met such a fate.

According to an article in Entrepreneur.com, the organic popsicle company started with humble beginnings by making their product inside a school kitchen. “After a year and a half, the owner hired a single employee, and six months after that hired 13 more employees and entered a 3,000-square-foot manufacturing facility. By the end of the year, the company had gone bankrupt.”

Ouch!

There is a danger in growing too fast.

Here are 3 tips to help you build your business at a comfortable pace so that you don’t run the risk of going out of business. 

Tip#1

Write a business plan

I was at a S.C.O.R.E. seminar recently with local bankers and the key takeaway from that meeting was that a business plan is not just for startups but is a working document to guide you through your business journey. Here is a great resource that will help you to create one.

Tip#2

Track Your Finances

I know this sounds like no fun at all but it is crucial to build your business at a comfortable pace. Almost every business that failed including the one above was due to poor financial management. There are many tools available to help you do this like Excel spreadsheets and accounting software such as Quickbooks Online.

Tip#3

Don’t Hire Too Fast

It can be exciting and a relief to bring on a few extra hands to help grow your business. The key thing to keep in mind is to make sure it makes both financial and operational sense to do so. Here are a few tips to help you make the decision.

Conclusion

Running a business can be much like riding a rollercoaster with plenty of dips and high points. A ton of amazing businesses grew too fast and are no more. That’s why it is so important to make sure you are building a great business at a comfortable pace. I hope the 3 tips shared help you along your business journey. 

Do you have any tips or pearls of wisdom you would like to share? I can’t wait to hear them!

The Final Piece of the puzzle: Licensing & Tracking Your Business Finances

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The entrepreneurial journey can be exciting and rewarding. In the previous post I shared a few tips to help you get started on your journey. This week we will finish the tips list with discussing how to make sure you have the correct licenses for your business and my recommendation on software to use for setting up the tracking system for your business finances.

Licensing For Your Business

It is so important to get started on the right foot when you start your business and making sure that you are operating legally is paramount. According to Legal Zoom, “Virtually all businesses will need a license of some sort, and many will need to apply for a number of different licenses and permits. The types of licenses and permits your business requires will depend on where you live and the type of industry you’re in.” Check out their checklist to make sure you have the right licensing/permits for your business.

System For Tracking Your Business Finances

You are going to put in many hours and days getting your business off the ground and selling to your customers. You will have your own personal money that you will use to fund your business and hopefully a ton of customer sales. Once the money starts flowing in then you will most likely focus on how to keep the process going and taking a moment to see how financially well your business is doing might take a backseat. That is unless you get started on the right foot. My recommendation is to set up your business bookkeeping system using Quickbooks Online. This will help you to begin tracking your business finances correctly from the start. Once you have opened your business checking account then you are going to want to subscribe to Quickbooks Online and connect your bank to the software so that you can start tracking your business activity within the software. 

This is important so that when tax time rolls around you will have all your ducks in a row to get the most tax deductions possible. My suggestion is to start with their basic subscription called Simple Start and as your business grows then you can always upgrade to a higher plan later. Incidentally, I do not recommend the Self-Employed Subscription as it only tracks the Profit & Loss activity and you can’t upgrade to a higher subscription later. This subscription is basically geared towards working professionals who intend on doing a side-hustle and not go into business as a full-time entrepreneur.

The entrepreneurial journey is filled with ups and downs but getting started on the right foot will help you to be a successful.

Keep IT Sunny~

Follow The Rules Of The Road!!

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The key to building a solid foundation for your business finances is to follow the rules of the road. In the blog post last week we took a look at the chart of accounts in relation to building a solid foundation for your business finances. This week we will take a look at workflows in QBO. First, I need to ask the question:

Are you a rule breaker or rule follower?

 I know that I am equal parts rulebreaker & part rule follower:) 

When it comes to using QuickBooks Online I am definitely a rule follower. In order to ensure that you are getting the most out of the software, it is important to follow their predetermined workflows. One area that I see a lot of “rule-breaking” around is not using the workflow for receiving payments. The scenario can go something like this: your customers pay you and then you receive the payment and deposit the funds into your checking account within QuickBooks Online. 

This Is Great:)

You provided the service and your customer paid you. It sounds like everything is working okay UNTIL you try to reconcile your account and the money you deposited to your bank in real life isn’t matching what is showing in QuickBooks Online.

What Is Going On Here?

The problem is that the predetermined workflow was skipped and as a result confusion and frustration have taken hold. The proper workflow is to receive payments against the invoice and select the “deposit to” account undeposited funds. Next, the deposit that you made at your bank will show up in the bank feed and there will be a match that shows that you are good to go. In contrast, when the workflow is skipped then the funds you deposited into the checking account will not match what is shown in the bank feed because they are not grouped together which is how you made the deposit at your bank in real life.

I am a free-spirit and rule-breaker on something like eating more sweets than I need to. :)

But when it comes to QuickBooks Online following the rules is best because it can help you to build a solid foundation for your business finances and avoid frustration. 

Keep IT Sunny!