Always Remember the Numbers
There are a million things to think about when starting a new web venture. Remember to take care of the basics to ensure success.
Despite the tough financial times we are living in at present, there has never been a better time to be an entrepreneur. In some ways, the increased spirit of free enterprise has even been helped along by the economic downturn that started around nine years ago.
As major businesses struggled, many individuals felt there was nothing to lose in going it alone and were prompted to take a step that they might have thought twice about in better economic times.
Today, small business experts Linda Carr Accountants see no indication of the trend slowing down. The technological age means almost anyone can start their own business, and those who operate predominantly online have minimal startup costs and therefore very low barriers to entry.
The great juggling act
Of course, starting a business is one thing, making a success of it is something else. According to an oft-quoted statistic, some 85 percent of new businesses fold within the first 18 months.
Anyone who takes the plunge will be working tirelessly to ensure their company falls into the 15 percent that go on to succeed, and that means keeping a lot of balls in the air. Managing the day to day operation, developing new business, gathering customer feedback, steering the medium and long term strategy, ensuring the marketing is effective and on brand – these are just a few of the topics that will be keeping the business owner busy all day and wakeful all night.
It is easy to take your eye off the most important ball of all. In the end, a business is there to make money, and if there is a problem with the accounts, it could spell disaster and an early bath.
It is essential for any business to keep a close eye on the finances, but particularly so for a start up. The vast majority of new business failures are brought about by a problem with the cash flow rather than any deficiency in the overall business model.
You therefore need a skilled accountant onboard from the word go. To try and fulfil this role yourself is a false economy that will more often than not end in disaster.
For a small business, that does not necessarily mean hiring – even larger businesses often outsource the accounting function these days, so it generally makes sense to use the services of a local accounting firm.
You cannot keep secrets from your doctor, and similarly, your business needs to be completely open with your accountant. Relationship building is important, and they will be able to help you grow the business into one that is healthy, viable and efficient.
There are a number of different accounting methods that can be used, and these depend on various factors. It is far easier to start out on the right foot than to try and change horses midstream, which is another reason it is so important to have good financial advice from the get go.
With this in place, you have the freedom to focus on those other aspects of business development and strategy building to drive your business forward.