A Beginner’s Guide To Making Your Business Work For You
Starting a business entails understanding and dealing with many issues - legal, financing, sales and marketing, intellectual property protection, liability protection, human resources, and more. Starting a business is a huge commitment, and entrepreneurs often fail to appreciate the significant amount of time, resources, and energy needed to start and grow a business. If you’re serious about starting a business, don’t forget to think about YOU – What do YOU want out of your business? JB Training Services Inc has written down a beginner’s guide to making your business work for you in hopes of creating awareness around some key elements that are often missed by new business owners.
Hire a professional: The cost of getting anything wrong can drain your most important resources: time and money. Hire a professional to do it for you, or show you how. Instead of worrying too much about the cost of bringing in a bookkeeper, for instance, consider it an investment that will probably save you time, money, and stress, as you scale up. A GREAT bookkeeper can help you avoid big and small problems by keeping track of cash flow, maximizing profit, measuring performance, auditing for efficiencies to avoid unmanageable debt, and more.
Have a system in place: When it comes to finances, set up the categories YOU need on your Income Statement and Balance Sheet, so it is easy for YOU to understand. Having these accounts in order will make it easy for you to access the power and might that is hidden within your financial statements. Document your processes so you can delegate as your business grows.
Understand your finances: It is important for you to be able to distinguish between a Balance Sheet and Income Statement. The Balance Sheet shows what a company owns (assets), owes (liabilities), and the remaining value of the business (equity), at a specific moment in time, while the Income Statement shows total revenues and expenses for a period of time. The Income Statement and Balance Sheet are used to evaluate performance, strength, and to see if there are any financial issues that need correcting.
Have a list of goals: Goals typically represent a path towards achieving a company’s larger purpose and help to establish focus and direction for individuals to work toward. It is important for you to have a list of goals you want to achieve (e.g., why are you running a business, how much money you want in your pocket after taxes, how much time you want to spend working, what type of work you most enjoy doing (sales, production, administration, etc.). If you do not have any set goals in mind, the business will wind up running you, rather than you running the business. Set your goals, but be flexible enough to pivot when needed - and it will be needed.
Make sure your goals align with your finances: To ensure these goals are attainable, you need to understand the link between Financial Statements (Balance Sheet and Income Statement) and your goals. Take the time to learn about and understand the finances of your business. What is a Balance Sheet? What is an Income Statement? How do these reports benefit your business? Manage your CASH and manage your TIME. Understand that “Profit” (Income Statement) is different from “Cash in the Bank” (Balance Sheet). Plan how and when you will collect and spend the cash. Don’t forget about taxes. Same thing with your time. Plan! How will you use it? How much time will you spend on “sales and marketing, producing the product or service you sell, finances (bookkeeping, review, and planning), and HR (human resources - including you)?
Advice From The Pros
Focus on YOU: What do YOU want out of your business? If you forget to take care of yourself (and you do an excellent job of taking care of your clients/customers), the business may grow to the point where you are overwhelmed. Focusing on your clients/customers is also crucial, but find your niche and market to them. What type of person is most likely to buy your product or service? If your business is about developing long-term relationships, what type of clients/customers interest you. What are their values, interests? Are these in alignment with yours? Answering these questions will help you understand what path you need to take to make the most out of the things available to you and ensure your business reaches new heights.
If you are looking for training, or a Certified Professional Bookkeeper in Edmonton, Alberta, reach out to JB Training Services Inc. I am a Certified Professional Bookkeeper, a QuickBooks Certified ProAdvisor, Xero Certified Advisor with a resume that includes over thirty years of training and experience in a combination of accounting, training, and outdoor adventures. My education has been ongoing and has fully complemented my work experience. I have studied at the CMA program in Toronto, Athabasca University in Edmonton, and the University of Alberta. I offer training, bookkeeping, and coming in 2022 outdoor adventures for visionary entrepreneurs. For a complete list of my services, please click here. If you have any questions about bookkeeping, whether it’s doing it yourself, hiring and training staff, or outsourcing to a qualified professional, I’d love to hear from you. Please contact me here.