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Setting Yourself Up for Business Success:

Preparing for business success

 

Setting Yourself Up for Business Success:

It is not too often that the new business person has all the skills necessary to run a successful business.  In some cases the new business owner may know their product or service inside out, but don’t have the communication skills to sell it.  Then there are others who could sell anything but really don’t have the confidence in their product/service.   Then there are those that are fantastic at administration but have no idea of how to run the operational side of the business.  Yet, every one of these skills and more  are needed for a successful business.

When possible the appropriate staff are hired with the proper skills for each area but in the beginning there may not be enough funds for this.   Plus, there may not be enough work in these different areas to hire full time staff.

For the first little while it is going to be a juggling act to get your business running smoothly and where you personally feel stable with it.

There are some other factors that you need to consider as you progress with your business.

Know what there is to know about money.  It is not enough for you to merely know how much money is in your business bank account.  You need to know what is taking place with the business finances on an ongoing basis.  This is where you need someone that has bookkeeping experience as well as an experienced small business accountant.   Aside from knowing about your business finances, there are other areas concerning money that you need to understand.

There may come a time where your will need to obtain financing, and you not only need to know how that will work and which options will be available to you, but how to decipher which option is best at that particular time.

Another important factor for you is to continue your education, especially as it pertains to your business.  That doesn’t mean you have to go back to school. What it means is staying in tune and actively involved in your industry.   Be sure to keep up with what is current.   When possible attend trade shows and conventions that pertain to your business.

Don’t extend your spending:

It is exciting when a new business takes off and starts making a good profit.  Hopefully you are retaining enough of the profits within the business to sustain it in case it falters or there are increased expenditures.   By this time you may be a point where the business can personally support you at a decent wage.   Do not fall into the habit of becoming a big spender on a personal level assuming that your business is so solid that it will not fail you.  Over extending your personal finances only based on the success of your business can lead to a financial disaster.

These few tips will help to keep you more grounded as your business begins to form roots and is built on a solid foundation.

 

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Sam Seidman, CPA, CA, LPA
629 Sheppard Avenue West
Toronto, Ontario
M3H 2S3

Telephone: (416) 398-1700
Fax: (416) 398-6226

Chartered Professional Accountant, Chartered Accountant, Licensed Public Accountant

Email: sam@torontoaccountant.ca

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