In order to be successful with your new business, there are some important steps every business owner should take before their grand opening. In this article, we at Ferguson, Timar & Company break down the basics of starting a small business. Read on to learn more.
Define Your Vision
You may have a general vision for your business and some key pieces in place, but that will only get you so far. You really have to further define your vision, do your market research and cover every detail it will take to get your business off the ground properly. Think of it like the old construction adage: “measure twice, cut once.” The more prepared you are, the smoother your business will run.
Seek Help from Professionals
Small business experts all agree on this point. Do not be afraid to seek the help and advice of experts in key fields that will help you build a stronger business. Find a mentor you can talk to and discuss important issues with. Spending time with an accountant, tax professional and/or attorney can be really beneficial. Ferguson, Timar & Company can help you with any of your small business accounting, bookkeeping and tax preparation needs.
Take a Long-Term Approach
Just because you have a great business idea does not mean it will automatically translate into a successful business. It takes a lot of hard work, patience and perseverance. Determine a business strategy that will allow you to be successful over a long period of time. Don’t just think about what’s directly ahead of you—though that is also important. The more you prepare, research and develop your business plan for long-term success, the more likely you will have continued success.
Break-Even Point and Cash Flow
One important step you can take is to figure out your break-even points and determine how much cash flow you need on a daily, weekly, monthly or yearly basis to recoup your expenses and turn a profit. Look at these numbers regularly because they will change over time and adjustments will always need to be made to keep the business profitable.
Remember Your “Why”
Even if you know how to start a successful small business and things are going smoothly, never lose sight of your “why.” By this, we mean why you started your business. This will keep you motivated and focused on what’s most important as your business grows.
What is Your Endgame?
Even as you start your business, you can have an endgame goal in mind. What goals are you trying to achieve? Do you have an exit strategy for when you are ready to sell the business or are you planning to run it the rest of your life? Is this business a stepping stone toward something else? Give a lot of consideration to your endgame goals and then put the pieces in place that will allow your business to take you there.
There are a lot of other steps you can take to start a successful small business. Ferguson, Timar & Company is here to help. We work with a lot of small business owners in the North Orange County area. From accounting and bookkeeping services to professional tax preparation and consultation, we have all your financial service needs covered. Contact us today for your small business consultation.