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Author: Jake Snelson

Building a Successful Small Business

5 Daily Essentials for Building a Successful Small Business

Successful Small Business

It’s no small feat to build a small business. Most entrepreneurs and small business owners invest time, money, and passion into their ventures. But it’s not just that investment, and their commitment to it, that makes their business a success. If you’re looking for long term success, you’ll need to consistently invest, building habits and work flows that build rather than create chaos. Today we’re covering 5 daily essentials for building a successful small business. Their items that the pros use to make sure they’re keeping on track and reaching their goals. Put these in place from day one, or even start implementing them today and we’re pretty sure you’ll see positive changes coming your way.

1. Check in With Your Vision & Goals

It may seem simplistic to say remember your vision and goals – everyday. But that’s exactly what you should do. The hard part isn’t the remembering it’s holding yourself accountable and getting achievable goals and a clear vision set in the first place. There are lots of ways to get a vision for your business, but the best one we know of is to simply take some time and ask yourself what you want to accomplish. Not sure? Answer these questions:

  • what do you want to accomplish this year?
  • where do you see yourself in 5 years?
  • what type of problems does your business solve?
  • what type of person are you helping?

After you’ve done this for your business, list out specific products and/or services and do the same. Who are you helping with this product? What would you like to see happen with this product during the year? How are you going to make it happen?

As you check in daily on your vision and goals, you’ll notice that your goals may shift over time – your vision however, should stay pretty much the same. Realigning yourself to your vision and refocusing on your goals on a daily basis helps you to stay accountable and keeps you focused on what’s important in your business.

We share some ideas on how to stay inspired on your goals and build your business here.

2. Review your Books

For many entrepreneurs and small business owners the idea of checking the books daily is overwhelming. When we mention reviewing the books on a daily basis, we’re not suggesting that you spend much time reviewing all the tiny details – that’s a process that’s more effective if done monthly. Instead a daily review of your books should be a few moments where you focus on the financials of your business. You should know if you’re making or losing money at any given time during the month. You also should have a good idea of what products/services are selling well and what seem to be lagging. Even if you’re a solopreneur or you manage the majority of your business happenings – keeping a ‘Review the Books’ mindset means that you’ll be wise in making business decisions because you’re aware of where you stand financially at all times. The daily process should take only a few minutes and be empowering, for example: “Today I’m going to see if I can market, sell, or promote Product X and keep moving towards my goal of increasing my monthly net income by XX amount.”

If bookkeeping isn’t really a thing for your business, we’d suggest getting it established. You can check out our secret formula for getting started here and learn some simple strategies for effective bookkeeping here.

Strategize with Employees or a Business Ally

3. Touch Base With Customers

Some of the most successful entrepreneurs still spend a ton of time talking to clients. Why? Well, without them there wouldn’t be much of a business to begin with. Taking a few minutes to touch base with customers every day is one of the best things we can think of to create a successful business. Here’s a few reasons why:

  • learning from customers helps you hone your current offerings
  • customer service is responsible for more than half of customer satisfaction – reaching out and making sure you’re getting it done for those that do business with you is just plain smart
  • expressing a little gratitude towards those you work with/for goes a long way – you’re putting a little bit of gratitude out into the universe, but it also helps build life long customers

You’ll find a lot of direction can be found in talking to your customers. Plus, the info you glean from these interactions should fuel you to create additional offerings, improve current services, or spend more time promoting the products you have. Interacting with customers takes time, but it also can provide some of the most valuable information out there.

4. Strategize with Employees or a Business Ally

Small business owners often operate in silos because they’re more invested in their work than those that they employ. That’s not to say that your employees don’t care about the work they do, but that they’re not as invested because it’s not their ideas, money, or passion they’re implementing. If you’re a solopreneur it’s a good idea to find a business ally – someone that’s also spending time on their own ventures – to bounce ideas off of. If you’re employing workers, we suggest spending a few minutes to strategize with them because as you brainstorm better ways to do things with those you employ, you’re utilizing the skills they bring to the table as well as empowering them to be more invested in the work they do because they helped create the plan.

5. Step Away & Unwind

Taking a moment to step away and unwind from your business ventures is vital to being successful. No one builds an empire overnight, and they definitely don’t accomplish it if they’re burned out. Taking at least a few minutes (we’d recommend at least 1 hour) to take a walk, have lunch, pursue a hobby, or spend time with family and friends actually fuels your passion rather than depletes it. Whatever you do, make sure you’re balanced in the time spent between being hands on  and stepping away. We find that some of our best work happens when we head back to the office after we’ve taken an hour or two to refuel our passion and unwind from the pressures of work.

Step Away & Unwind

What other things do you do daily to ensure your business success? We’d love to hear about them in the comments.

FAQs About Building a Successful Small Business

1. Why is it important to check in with my vision and goals daily?
Daily check-ins help keep your business aligned with your long-term vision and ensure you stay accountable to your goals. Regularly reassessing your objectives allows you to adapt to changes while maintaining focus on what truly matters.

2. How often should I review my financials?
While a detailed monthly review is essential, a brief daily check of your financials can empower you to make informed decisions. Spend a few moments each day to understand your income, expenses, and which products or services are performing well.

3. How can I effectively connect with my customers?
Touching base with customers daily is key to building strong relationships. It allows you to gather feedback, improve your offerings, and express gratitude, all of which contribute to customer satisfaction and loyalty.

4. Why should I strategize with my employees or business allies?
Collaborating with employees or fellow entrepreneurs can lead to innovative ideas and improved processes. Involving your team fosters a sense of ownership and investment, making them more engaged and motivated in their work.

5. How important is it to take breaks from work?
Taking time to unwind is crucial for maintaining long-term success. Stepping away allows you to recharge, preventing burnout and enhancing creativity. Regular breaks can lead to more productive work sessions and renewed passion for your business.

 

6 Month check-up on Small Business

How to Perform a 6 Month check-up on Small Business

Every business needs to perform a 6 month check up on their company.  If you are good, you perform those along the way as well, monthly, weekly, daily, but a 6-month check up should consist of 3 different areas:

  1. Value Chain Analysis

  2. SWOT analysis

  3. Revisit Quarterly & Yearly Goals

1.What’s a Value Chain Analysis?

This is where you look internally at the process piece of your company and see how you can improve in each area of running your business.  This is very tricky to do impartially, but you need to be honest for your business’ sake. What bottlenecks do you see right now (don’t allow yourself to say, “that doesn’t count because we’re waiting for a part to solve that bottleneck, so we already know about that”–no!  Be honest and write everything down. Remember, this is merely a survey and not a “To Do List.”

Areas of Analysis:

Support Activities:

  • Firm Infrastructure: Systems/Routines

  • HR: Recruitment; Formation

  • Technology Development: product design

  • Procurement of Resources: ensure resources availability

Primary Activities:

  1. Inbound Log: Reception, warehousing, distribution of tasks

  2. Operations: how administrative tasks get accomplished

  3. Outbound Log: Storage, transportation, product distribution

  4. Marketing & Sales: CRM, advertising, social media, email blasts, etc.

  5. Customer Service: warranty, maintenance, referral rewards, discounts, etc.

2. What are your company’s Strengths Weaknesses Opportunities and Threats?

These questions are also hard to be impartial about, but this is very important to be honest here as well!  Strengths and Weaknesses have to do with your company’s skills and abilities.  Opportunities and Threats have to do with what is going on in the industry and marketplace and how can your company be benefitted or deterred due to Social, Legal, Environmental, Political, and Technological changes that are here or upcoming.

Why revisit Quarterly and Yearly Goals

3.  Why revisit Quarterly and Yearly Goals?

Yearly goals have to do with benchmarks, financial forecasts that you’re company wants to meet. Quarterly goals are more the month to month operational/sales goals your company has created in conjunction with smaller financial goals in order to meet the Yearly goals.  If those goals are in a file that is never brought to light, what are the chances that your company will be able to meet them? Something important to remember is that those goals can change. When planning out a whole year many things change, Marketing, Technology, the best Processes for your product funnel, etc.  Don’t feel bogged down and embarrassed to look at those goals. Be honest about where your company is with those. If you have decided to do something different, put the old goals in your “backlog” for later. If the industry has changed and there’s a new way that works better to accomplish your goals, don’t continue to follow the old plan just because you worked hard on it.

Outline of Quarterly/Yearly Goal Meeting:

  • Review:

    • Vision: why your company does what it does

    • Mission: who your company provides services/products for

    • Strategy: how your company provides those services/products

    • Yearly Goals: financial/operational goals

    • Quarterly Goals: marketing/technology/process

  • Are you meeting those?

  • Do any changes need to be made?

  • What are the top priorities?

  • What can be pushed to the next year/6-months?

identify my company's Strengths, Weaknesses

After this assessment, don’t start searching for a paper bag.  This is not meant to be overwhelming but can even SAVE you TIME believe it or not!  You’ll need to take your assessment and decide which pieces of your business need to change right away, which are right on track, and which can wait until the next quarter or year.  Personally, I have a hard time with reevaluating because I feel like I’m throwing away hard work. Putting projects into a “backlog” where I can still call them back to attention when I need ideas is a great way to make sure your business is running at top efficiency and not wasting time spinning wheels when ideas are needed.  As you get used to taking these steps every 6 months, your processes will be streamlined and you will not have huge, hair pulling out bottleneck issues that have gotten worse over time. You CAN DO THIS!!!

Frequently Asked Questions:

What is a Value Chain Analysis and why is it important?

A Value Chain Analysis assesses internal processes to identify areas for improvement within your business. It’s crucial for enhancing efficiency and productivity.

How do I identify my company’s Strengths, Weaknesses, Opportunities, and Threats (SWOT)?

Evaluate your company’s skills and abilities for Strengths and Weaknesses, and consider external factors like industry changes for Opportunities and Threats. Honesty is key.

Why should I revisit Quarterly and Yearly Goals?

Quarterly goals drive month-to-month operations and sales, while Yearly goals set financial benchmarks. Regular review ensures alignment with company vision and adaptability to industry changes.

What should I consider during Quarterly/Yearly Goal Meetings?

Assess your company’s Vision, Mission, and Strategy alongside financial and operational goals. Determine if adjustments are needed, prioritize tasks, and update plans accordingly.

How can performing a 6-month check-up benefit my business?

Regular assessments prevent inefficiencies from escalating, saving time and resources. By evaluating and adjusting processes every six months, businesses can maintain optimal performance and adapt to changes effectively.

 
Mailbox

Mailbox, P.O. Box or Home Address – How to Pick the Best Option for Your Small Business

We may be living in tech-savvy world, where email, text message, and other forms of digital communication seem to be king. But when it comes to businesses, every style, shape and size of business seems to rely on physical mail to function. It might be new business cards, invoices, or deliveries of stock and supplies, but whatever it is, there are just some things that can’t be taken care of digitally.

It’s a common question among business owners – what type of mailing options are out there and what’s going to work best for your business? And although there are supporters in every camp, we firmly believe that any of the options could work out fine for your business – as long as you weigh the pros and cons and are informed on what each option has to offer. That said, we’re talking mailing options and why you might want to consider either a home address, P.O. Box, or a mailbox for your small business.

Legally What Type of Address is Needed for My Business?

When it comes right down to it, you’ll need at least a physical address to complete the paper work to legally start your business and obtain your licenses and permits. The addresses you may want to use beyond that in your business are up to you.

Many businesses, mostly home-based businesses, use their home address on their business cards, stationary and as their mailing address for invoices and the shipping of supplies. Although that doesn’t sound like a bad option, it does raise concerns when it comes to security as well as the logistics of changing addresses in case you move from your current home.

P.O. Boxes are a good options and are available at almost every postal office across the country. However, over time, the personal side and transparency of our businesses have become more important in attracting clients. Because anyone can obtain a P.O. Box and it’s a fairly common belief that many P.O. Boxes sit untouched for days, even weeks, at at time – the use of one can actually invoke distrust with some clients and make them wonder about the legitimacy of our business. When it comes to marketing our business, we want to do everything we can to promote trust, transparency, and passion for the work we do for our clients.

Mailboxes are another option, often provide a physical street address for your use, and include additional services that the traditional P.O. Box may not offer.

When it comes right down to it, any of the options may be just what your small business needs. But the best business decision you can make is one that is informed on the options. As you consider your business needs, budget, proximity, and marketing tactics, you’ll be able to pick and choose from the address options and make a pick that will fit your business to a T. We’ve compiled the basics on all three options for your use:

Reasons to Use a Home Address for Your Small Business

  • convenience
  • doesn’t incur additional cost
  • provides you with a proper mailing address, rather than a impersonal P.O. Box as your address
  • keeps things simple – one address for everything – your licenses, marketing materials, shipments, and a searchable location listing for Google and other search engines

Reasons to Use a P.O. Box for Your Small Business

  • usually the low cost option
  • provides a level of security for your personal life because your home address isn’t made public
  • provides continuity if you ever have to move and cuts down the hassle of informing clients of a change of address or an interruption in your deliveries
  • you mostly receive mail that’s delivered by traditional mail carriers (the post office)  rather than specialty mail delivery services (i.e. UPS, FedEx, etc.)

Reasons to Use a Mailbox for Your Small Business

  • you often receive from multiple carriers, providing greater versatility and reliability
  • need a mail forwarding option because you travel often or for work
  • notification options – many mailboxes provide a phone call or text message whenever an item arrives, so you can stop spending time checking the mail and get back to business
  • round-the-clock access – many mailbox providers offer 24-hour access to your mail and deliveries, so you can pick up your mail when you want instead of arranging your schedule around their hours

So which option fits your business best? Are there additional needs you have that don’t seem to fit between a home address, P.O. Box or Mailbox? We’d love to hear about it in the comments.

Small Business Accounting School: Tracking Your Receipts

Welcome to Small Business Accounting School – school is now in session and it’s time to start building your business. We know that small business owners everywhere have passion for what they do. They put in countless hours, keep track of the dollars and cents and are more than willing to invest back into the biz when they know it will grow and they’ll make a profit. Small business owners are savvy, but they’re also sometimes short on time. We get that, because we work with small business owners everyday, and we’re even small business owners ourselves.

Every small business owner seems to have their speciality. They’re good with the books (that’s us), or stellar with the creative, or super savvy when it comes to influencing and marketing. But it seems that none of us can do it all. We figured we’d pull our best resources and advice on accounting and put it all in one place. That way small business owners everywhere could gather, read through the posts, try their new found knowledge through the quizzes and then go forth to build a better business by putting our bookkeeping advice and financial savvy to use. If you have questions – we’d love to talk. Contact us and we’ll happily answer your questions and see if we don’t make a good fit for you and your business.

And now… on to this session of Small Business Accounting School.

If there’s one thing we get as accountants, its that bookkeeping and accounting for a small business can create a lot of paperwork. For us, running the numbers and tracking the receipts is no big deal, but we get that not everyone loves numbers or getting it all organized in the books. That said, tracking receipts and handling the books is a part of small business life – so we’re sharing our secrets.  This week, we’ll be covering: Conquering the Paper Pile-Up: Tracking Your Receipts

Test Your Knowledge with this Quiz

Missed last session? No problem. You can catch the post and take the quiz here

How to Find the Right Business Licenses

How to Find the Right Business Licenses and Permits for Your New Business

How to Find the Right Business Licenses

Starting a business takes a lot of work. No matter which direction you turn, there seems to be a hundred different things to do with a million little details to figure out. Getting your business set up correctly from the start means you’ll be off on the right foot and not have to back track to do things right after you’re business starts to grow. But what do you need to start a business? It might not seem so simple if this is your first time launching a new venture, so we’ll start by covering the basics of licenses and permits.

Finding the Right License or Permit for Your Business

It’s true that one of the main reasons for licenses and permits is so that the government can track your revenue for tax purposes. However, it’s not the only reason you’ll want to make sure you have the right business license or permit. Licenses and permits also help protect the public (and that includes you when you’re acting as a consumer of products and services from the businesses around you).

Every type of business has varied requirements for the type of business permits and licensing that it requires. A lot of it depends on the type of industry and the location you’re operating in. The best thing you can do is figure out the type of business you fall under and then work from there.

What Type of Business Do You Have?

There are a variety of business types, but we’ll go through the most common ones and you’re sure to find that you fall into at least one category. Grab a piece of paper and a pencil so you can jot down notes and make a to do list so you hit the ground running.

  • Home based businesses or sole proprietorships typically need a permit from their local government to operate legally. If you operate under your name, you may not need a DBA, but if you’re using a business name and still filing as a sole proprietor, you’ll need to find out the specifics of filing for a DBA.
  • If you’re selling goods or services, you’ll more than likely need to get a sales tax license or a permit.
  • Professional licenses, signify the expertise level that an employee or business owner has – veterinarians, doctors, hair dressers, etc. – they all have professional licenses that need to be kept up to date.
  • Federally regulated industries, such as aviation, alcohol, agriculture also require specific federal licenses or permits.

Once you know what type of business you fall under, you’ll need to check your local state government page to see the specifics of what’s required for your state. You can access license and permit info for your state here.

Making Sure You Keep Up With Licensing

Making Sure You Keep Up With Licensing and Permit Renewals

Once you’ve filed for and obtained the proper licensing and permits, you’ll need to be a responsible business owner and make sure to maintain them. These expenses can be counted as the cost of doing business and can be used as tax write-offs come tax time. Here’s what we recommend to manage the paperwork that comes with our business license and permits:

  • keep track fo renewal dates – set an appointment a week or two in advance in your phone so you make sure you don’t miss the deadline. It’s also smart to keep the links to the appropriate paperwork and web pages you might need so that you don’t have to waste a lot of time searching.
  • keep a copy of the paperwork you submitted for your current license/permit. That way you have it on record and if you have to reapply as part of the renewal process the majority of the information can be easily transferred over from your last application.
  • Make sure to display your licenses and permits in an easy to view location and that they’re properly protected. Some states actually require that you display them in a prominent location so customers can see them.
  • Pay attention to what’s needed if you expand your business. You may need to apply for additional permits or reapply or a different type of business license if you’re growing quickly.
  • Tax permits are different than the normal business license or permit, but you will need to also check out what types of things you’ll need to do to register for the appropriate tax permits and whether or not you need an EIN.

Operating a Home-Based Business – Make Sure You’re in Compliance

Out of all the business types, home-based businesses are often those that are found not in compliance when it comes to business licenses, permits, and keeping up on taxes. Our guess, is that often, the owners consider their business a hobby, aren’t looking to grow it to a substantial size or even think of what they’re doing as a business. We get that, but as accountants, we’d recommend filing for and maintaining the proper licenses so that your business can flourish.

Permit for Your Business

So what type of business do you have or are thinking about starting? Have you started working to obtain the proper licenses and permits? How can we help?

Frequently Asked Questions

1. What licenses and permits are needed to start a business?

To start a business, you’ll need various licenses and permits depending on your industry and location. Common ones include a local business license, sales tax permit, and professional licenses. Check with your local and state government for specific requirements.

2. How do I determine which type of business license I need?

Identify your business type (e.g., home-based, professional service, federally regulated) and check your local state government website for specific licensing requirements. This will help you determine the appropriate licenses for your business.

3. How can I ensure my business stays compliant with licensing requirements?

Maintain compliance by tracking renewal dates, setting reminders, keeping copies of submitted paperwork, and displaying licenses prominently. Ensure you update licenses if your business expands or changes its operations.

4. What happens if I don’t obtain the necessary business licenses and permits?

Operating without the required licenses and permits can result in fines, penalties, and potential closure of your business. It can also damage your business’s reputation and legal standing.

5. Do home-based businesses need licenses and permits?

Yes, home-based businesses typically require local government permits to operate legally. Even if it’s a small venture, obtaining the proper licenses ensures compliance and can benefit your business’s growth and legitimacy.

4o

Small Business Accounting School: When Should I Start Paying Quarterly Taxes for my Small Business?

 

 

Welcome to Small Business Accounting School – school is now in session and it’s time to start building your business. We know that small business owners everywhere have passion for what they do. They put in countless hours, keep track of the dollars and cents and are more than willing to invest back into the biz when they know it will grow and they’ll make a profit. Small business owners are savvy, but they’re also sometimes short on time. We get that, because we work with small business owners everyday, and we’re even small business owners ourselves.

Every small business owner seems to have their specialty. They’re good with the books (that’s us), or stellar with the creative, or super savvy when it comes to influencing and marketing. But it seems that none of us can do it all. We figured we’d pull our best resources and advice on accounting and put it all in one place. That way small business owners everywhere could gather, read through the posts, try their new found knowledge through the quizzes and then go forth to build a better business by putting our bookkeeping advice and financial savvy to use. If you have questions – we’d love to talk. Contact us and we’ll happily answer your questions and see if we don’t make a good fit for you and your business.

And now… on to this session of Small Business Accounting School.

 

Have you heard of quarterly taxes? Have you ever wondered if your small business is making enough to warrant paying them? How might you go about figuring out if you should pay quarterly or just wait until the end of the year? We’ve got you covered – and this question is a frequent one we hear from new clients!  This week, we’ll be covering the question: When Should I Start Paying Quarterly Taxes for my Small Business?

Test Your Knowledge with this Quiz

 

Missed last session? No problem. You can catch the post and take the quiz here

 

 

 

Register My Business

When Should I Register My Small Creative Business?

There is no short supply of things to do when you’re starting a small business. There’s setting up the books, managing the finances, sourcing product and promoting services… and that’s just the start. And when you’re first starting out, there’s the constant need to keep expenses as low as possible, until you start hitting sales projections and making a consistent profit. So when do you need to register your small business?

What does registering my business actually do?

But registering you’re business isn’t merely a fancy piece of paper that cost you a hefty amount of pocket change. It’s not even something that just legally qualifies you to sell/work in the city and state where you reside.

No. Registering your business not only provides you the legal right to operate your business, but it also provides you with a “corporate shield” that will protect your personal assets and that’s something that you should want right from the start.

When is the best time to register?

It may seem like a stack of paperwork that requires both your time and hard-earned cash could be put on the back burner. However, the process is much easier to complete at the start. Small businesses are usually simple in the beginning and it’s easier to answer the tough questions before allow a lot of business to take place – especially if you’re going into business with a partner.

If you’re a solopreneur, or one-man shop, it might be easy to write off this process under the guise that this is all something you do for fun. As accountants, this is something we discuss quite frequently with bloggers (and other small business/hobby-like operations). You can read more about is my blog a hobby or a business here – and many of the same questions apply to those that sell frequently on ebay, refinish/sale furniture, among other things.

The short and best answer is this. Don’t put off registering you’re business, instead do it first. Here are just a few benefits as to why:

  • If you’re entering a partnership, the beginning is always the best place to define ownership, and outline partner investing, etc.  Letting a bunch of decisions go by without setting things up in a legal way is only opening up the chance for a I said / they said conversation later.
  • Putting it off doesn’t save you any money and it definitely doesn’t keep the IRS from taxing your income. We’ve found that if you haven’t taken the time to register, you’re probably running you business from your personal account and not managing expenses and such – that means that you’re probably going to have messy books and a harder time filing taxes and it also means that it might throw a flag with the IRS come tax time.
  • Defining it as either a hobby or a business and then acting accordingly will actually encourage you to grow the business or just sit back and enjoy the hobby. We’ve seen many budding entrepreneurs spend months spinning their wheels because they’re not sure if the idea they have is worth moving forward – if you’re willing to do the paperwork and pay the fees, chances are you’re invested enough to get to it and make it work.

How do I go about registering my business?

Although you’ve no doubt heard about the ins and outs between s-corps, LLC’s and sole-proprietorships (and which one is best for your business), it’s not really as complex as it seems and it can usually all be done online.

First, you’ll want to check out your local state government pages to find the requirements for a business license and other requirements.

Usually, you’ll find that there are links to the forms you’ll need to complete and take with you to register. Now is a good time to find out about other items you may need – DBAs, EINs and figuring out the percentage to charge for sales tax in addition to when to pay quarterly estimated taxes are all things that you should be able to find on your local state government pages.

Small Business Accounting School: Accounting Mistakes That Put Your Small Business At Risk

 

 

Welcome to Small Business Accounting School – school is now in session and it’s time to start building your business. We know that small business owners everywhere have passion for what they do. They put in countless hours, keep track of the dollars and cents and are more than willing to invest back into the biz when they know it will grow and they’ll make a profit. Small business owners are savvy, but they’re also sometimes short on time. We get that, because we work with small business owners everyday, and we’re even small business owners ourselves.

Every small business owner seems to have their speciality. They’re good with the books (that’s us), or stellar with the creative, or super savvy when it comes to influencing and marketing. But it seems that none of us can do it all. We figured we’d pull our best resources and advice on accounting and put it all in one place. That way small business owners everywhere could gather, read through the posts, try their new found knowledge through the quizzes and then go forth to build a better business by putting our bookkeeping advice and financial savvy to use. If you have questions – we’d love to talk. Contact us and we’ll happily answer your questions and see if we don’t make a good fit for you and your business.

And now… on to this session of Small Business Accounting School.

 

It’s not enough to just keep track of finances and hope for the best. Instead you need consistent bookkeeping, and a chance to sit down budget, and track your profits and losses. We get that there’s only so many hours in a day and that the accounting for your business might not be at the top of your to do list. That said, it’s important to learn about the mistakes that can put your business at risk and then make sure you’re not making them. This week, we’ll be covering the 4 Accounting Mistakes That Put Your Small Business at Risk.

Test Your Knowledge with this Quiz

 

Missed last session? No problem. You can catch the post and take the quiz here

 

 

 

future profitability to investors

How to Write a Killer Business Plan in 5 Easy Steps!

 

Business Plan

Whether you are braving the pitch world to find a financer on Shark Tank, or you are striving to get your team organized, you need a KILLER business plan.  What exactly does that mean? Is it just an outline? Is it a letter to a bank? Is it a report? I’m sure it has trendy business graphs!!…What else do you need? What EXACTLY are the “powers that be” looking for in a confident and solvent business?

There are 5 main parts business professionals (financial tycoons) are looking for and they really aren’t that hard!

  1. What does the playing field look like in comparison with your business/product? There are 2 high-level ways to do this: SWOT and Porter’s 5 Analysis of your business.  This basically is the business world’s way of asking: What is your business good at?, bad at?, what is the rest of the industry good at?, and how can your business create opportunities in the industry?
  2. What is your company’s Mission, Vision, and Strategy?  This seems simple, but the business world is looking for how your company messaging, purpose, organization, and plan of action are intertwined with the plan that you have to move forward.  This shows your business will be able to follow through with the plan, make changes along the way, and work hard to achieve the plan you are proposing. They feel that if you are committed to something, it will show through the lifeblood and purpose of the company.
  3. What does it mean to them?  The mentality of a 5 year old definitely applies here, in a good way!  When preparing to fund a business venture you need to think selflessly about your dream business.  It’s hard. This is a time that is easy to become offended, brings up emotional memories, and takes strides of courage.  Just remember, they need to know why it’s important to them and why people should care about your best invention ever.
  4. What’s the Plan?  You’ve buttered them up, explained the business, explained why they should care, now you need to bring the organizing PIZZAZZ!  (Not JOKING) When investing in a company/idea, people need to see that your business has thought through contingencies and clearly and concisely can get from point 1 to point 10 and all you need is a little boost from them.  This should have general steps that show you know your weaknesses and how to overcome them, test groups, adjusting and re-adjusting the plan, specific dates and milestones, prep prior to and post product launch.
  5. Where’s the After Party?  Why would they want more?  They didn’t ask for more…but you need to show them you are prepared.  Give them pre-launch survey results, a chart outlining the key milestones with dates assigned, and another simple chart that shows and how long it will take until the business is profitable and then what the profit will look like after breakeven and on into the next quarter/year. Sample flyers and mock ups of what they can expect and that show what success looks like are never overboard but just help to build the vision you are hoping they’ll catch.

That’s pretty easy!  Make sure to go through your data and get it right, practice what you’ll say, their names and titles, etc.  If you are just doing this for your company, it is a GREAT place to build team vision for the future. Rally your group around you, share the plan, hand it out to everyone that needs one, and say a few inspirational words, a GO TEAM, and then get to work with the follow through!  I know your business will be successful as you are prepared. Don’t be afraid to make a bold move. You have amazing ideas and the world needs more amazing ideas these days!

Killer Business Plan

In conclusion, if you’re facing challenges managing your business accountancy and tax, don’t hesitate to reach out. With Vyde Your Own Accounting Department, you get all the services you need in one place. Remember, preparation is key! Gather your data, practice your message, and inspire your team with a shared vision for the future. Bold moves lead to great successes, so embrace your innovative ideas. The world is ready for them! Let’s work together to make your business thrive—contact us today!

1. What are the essential components of a killer business plan?

A killer business plan typically includes five key parts: a competitive analysis (using tools like SWOT and Porter’s Five Forces), a clear mission, vision, and strategy, an explanation of why your business matters to potential investors, a detailed plan of action with milestones, and projections for profitability and growth.

2. How can I conduct a competitive analysis for my business?

You can conduct a competitive analysis using methods like SWOT (Strengths, Weaknesses, Opportunities, Threats) and Porter’s Five Forces. These frameworks help you assess your business’s strengths and weaknesses compared to industry competitors, identify market opportunities, and understand external threats.

3. Why is it important to explain the mission and vision of my company?

Clearly defining your company’s mission and vision helps convey your purpose and long-term goals. Investors want to see how your messaging aligns with your strategy and how committed you are to achieving those goals. A strong mission and vision demonstrate that your business is driven and focused.

4. What should I include in my action plan for potential investors?

Your action plan should outline clear, organized steps from the initial concept to execution. Include specific milestones, contingencies for potential challenges, timelines, and methods for testing and adjusting your approach. This shows investors that you have thoroughly considered the path to success

5. How can I demonstrate future profitability to investors?

To demonstrate future profitability, provide detailed projections, including breakeven analysis and profit forecasts over the next few quarters or years. Use charts and visuals to illustrate key milestones and expected growth, and consider sharing survey results or mockups that visualize your success.

 

Small Business Accounting School: Accounting Terms To Know

Summer is almost out and Pomp and Circumstance is queued up at schools across the country, but when it comes to Small Biz Accounting School, we’re just about to be in session. With tax season finally over for another year, we’re looking towards helping small business owners, entrepreneurs and solopreneurs alike by giving them a summer school version of accounting school. While it’s true that we won’t be handing out diplomas or prepping anyone to sit for their CPA exam, we’re more than ready to help anyone interested in handling the finances and bookkeeping of their small business.

Each week over the summer, we’ll be posting another session of Small Biz Accounting School  and covering topics that will help you manage your business, your books, and accomplish your entrepreneurial dreams. Knowledge is power, and it’s time to get financially set to grow your business and increase your green.

First things first. To understand any subject, you need to have a sound understanding of the basic principles and vocabulary that’s commonly used. When it comes to accounting, we often get blank stares, but it really isn’t as hard as it all seems to be. This week, we’ll be covering the Top 10 Accounting Terms Every Business Owner Should Know.

Test Your Knowledge with this Quiz

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Vyde is a licensed accounting firm (CPA) based in Provo, Utah, and members of the AICPA. We provide professional accounting services to businesses and individuals, with a focus on small business bookkeeping and taxes.

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