7 Crucial Steps for Small Business Growth in 2020 - Ledger Bench
“If we are growing, we’re
always going to be out of our comfort zone.”
Quoted by John Maxwell
This is never more true in the world of businesses. This year you may have
planned different growth strategies but pandemic has taken a turn over all your
decisions, it has prevented your business from seeking its full potential. But
certainly, there are several other ways to ensure manageable and profitable
small business growth for your small business even in unprecedented times like
covid-19.
Creating a growth strategy for your business will ensure sustainability. A
growth strategy is beyond just envisioning long-term success. If you’ve no
tangible plan then you’re actually losing business or increasing your chances
of losing business to competitors. There is no specific recipe for instant
results and nothing is guaranteed. But you can accelerate growth and reach
milestones with clear goals and strategies.
Take the following crucial steps to ensure the growth of your business:
·
End of Year Tax planning from the Get Go:
For many small businesses, the year end purpose is to get your taxes in
line. However there are other things that adds value to your small business.
Many small businesses find that their bookkeeping is always lagging behind.
When you lag behind in bookkeeping, you’ve no idea where your business is at
financially and worse your business is running blindly.
Following a process of handling accounts receivables, accounts payable,
asset reviews and book reconciliation will allow you to calculate financial
reports for each quarter that will help you to set realistic growth plans. A
good bookkeeper will design a bookkeeping system to meet both your needs and
budget.
Bookkeeping services for small business
·
Start outsourcing your bookkeeping:
Bookkeeping can be time-consuming and complex. As a small business, it’s
vital to maintain records that will add value to your business. You may handle
bookkeeping yourself, or hire an in-house bookkeeper or outsource your
bookkeeping. But if you’re a small business then you may not want to hire a
full time bookkeeper for your business, this will only add up overhead costs.
You mostly need someone who can update your books a few times a month.
·
Financial Forecasting:
Financial Forecasting is the most important benefit you can get from outsourced bookkeeping services.
It’s vital to get your books updated on a regular basis. You need to set clear
guidelines and deadlines for bookkeeping tasks. Make sure you’re not only
receiving information on time, but accurate information as well. Your
bookkeeper will help you to make better financial decisions for things such as
cash flow, revenue & expenses, profit & loss, hiring or downsizing,
disaster planning, opening new locations etc.
Financial forecasting is the greatest step towards growth. You never have to
take big risks if you have a clear financial plan and forecast to predict big
financial risks. The key to financial growth is to have a reliable bookkeeper
that can manage books and work with you to understand your goals.
·
Learn from the year before:
If your bookkeeping is not helping you to add value to your business then
it's really hard to say to keep the books current. Your bookkeeping system must
be able to provide you with unique information that will take your business
towards your goal. It must aid you in making key business decisions. You must
communicate clear objectives and goals with your bookkeeper. Once you have
clearly stated your expectation to your bookkeeper on how you want it and when
you want it, you may hold your bookkeeper accountable to meet or exceed your
expectations.
·
Identify your ideal customer:
You started a business to solve a particular problem for a certain audience.
But the question is, who is that audience? Is that audience your ideal
customers? Identify your true target audience, reach out to them as you adjust
your business to stimulate growth. Focus on your strength rather than improving
your weaknesses, this way you can establish growth strategies.
·
Invest in Talent:
Your employees are in direct contact with your customers, so hire people who
are inspired and motivated by your company’s value proposition. It’s important
to have the right team to ensure fast growth. Be cheap when it comes to office
furniture, marketing budgets and holiday parties. Hire few employees but pay
them well enough. The best ones will always stick around even in bad times when
you cut their compensation.
Suggested Reads - How to Fill Out IRS Form 4562?
·
Have an exit strategy:
You should always have an exit strategy, even if you have no plans to sell.
It helps your business up for success. Sometimes, exit strategy may foster
restructuring or merger. The intention of an exit is to have an overall
valuation of your business. It will help your business to stay organized and
work towards glory. If in the worst scenario, selling your business looks like
a great option, then you will have everything in a row.
Comments