The Anatomy Of A Healthy Business
Running a business is easy. Being profitable and sustaining yourself on that businesses income is the real challenge.
Why? Because in the essence of saving money and time a lot of business owners try to do everything themselves. Suddenly tasks increase , overwhelm increases and accounting tasks either fall to the side or they get done wrong or with little to no effort.
So what should a business owner be doing to survive the day to day?
Let's talk about the anatomy of a healthy business
Basic understanding of reading a financial statement- In order to make crucial business decisions, a business owner should be able to know the difference between a net profit and net loss
Keeping business and personal separate- this is self explanatory, business and personal expenses should never be mixed. Mixing these too are signs of poor money management, over extension of your business, and sometimes disorganization
Periodic financial planning- this means at set intervals, making time to plan for the next step in your business. Always forward thinking
Keeping good records- If you have made investments in your business, purchasing equipment, hired employees, etc. You should have all of this paperwork filed away and organized. The goal is to always be IRS ready if they were to ever come knocking
Understanding the competition- Every business will have some sort of competition. If you don’t know who is in your market you could be missing out on sales, pricing too low, or pricing too high. Overspending or not obtaining customers because your competition has something over your business.
Developing and connecting with your professional team. You should be communicating with your professional team all year to consistently prepare and plan for the future
So are you running a healthy business or are you just barely making it? Most businesses in the beginning are barely making it, in fact this is the perfect time to break in those new habits. Unfortunately some businesses never make it past this stage and give up.
Click here to schedule a free 15 minute consultation. If you are looking for the peace of mind you need to move forward with running your business and finally have decision ready financials, let’s talk!