As a business owner, you have the opportunity to grow your business purposefully and instill trust and confidence in your clients. I’ve worked with many business owners in my professional career and I’ve noticed a few key strategies that I’d like to share with you on your path to business success.
Embrace Change and Adapt
Those who do not grow, adapt, or change tend to get left behind. Growth is significant now in the era of technology. If your company fails to adapt, then your competitors will have an advantage.
My wife and I recently drove three hours away for her to get Lasik and on our trip we passed at least five places qualified to complete her surgery. But why did we choose this provider?
It wasn’t price.
This practice was more expensive than the others.
It was technology.
The place we chose was continually upgrading their technology to the newest and safest option on the market. I was more than happy to pay the premium and drive the distance to ensure my wife had the best care available.
Part of my daily job as an Accounting Professional is helping business owners know if upgrading is worth the cost. And while I can’t know your business the way you do, I can present the numbers to help you make a smarter decision. To succeed in business, you must be on the lookout for ways to change so that you posture yourself for success in the future.
Hire people smarter than you.
If business payroll is normally your most expensive item, why not get what you pay for? Smart business owners look for people who add value to the team, these people may not always want to go with the flow, and that is good because they can inspire change that often is overlooked, and change is often exactly what your business needs.
If your employees always look to you for everything you create inefficiencies because your business can only operate with you as the head. The difference between being self-employed and owning a self-directed business is whether you can walk away and maintain desired results.
Here at Abacus, we thrive in helping self-employed individuals create self-directed businesses. This transition is a process of intentionality, trust, training, and internal controls. Most of the time, the reward is more than worth the effort and afterword our business owners feel the freedom to do what they want to do.
Do Something No One Else Does
In a world where competing with the biggest is not always attainable, we must provide value in other ways. One of the key ways my firm provides value is that we listen. As a business owner, you need someone who can listen to your struggles and partner with you to offer better guidance.
In the same way, you need to figure out why people come to your business and listen to what they say, if you hear the same complaint more than once, making a change could be your next big business opportunity. Try to keep an open mind and work towards market differentiation.
Understand the Importance of Income & Cashflow.
As a CPA, I can’t write or speak on a business topic without spending some time on income and cash flow. Without both, you are going to fail.
You may ask: Are they not the same thing?
I am glad you asked because they are not.
Income is the direction you are headed. Without income, your business will fail when all of its assets are gone.
Cash flow is where your cash is flowing. You may be making a ton of money but are reinvesting it all in inventory and then do not have the funds to pay your other bills. Or you bought one too many assets in the good season, and now do not have the cash to make it through the slow season.
While income issues are more of a slow fate, cash flow issues tend to sneak up on you. Both income and cash flow are vital to a business’s survival. Without good up-to-date accounting records making these real-time decisions can be like trying to hit a pinata with a blindfold on.
Tucker Virnig is a Senior Analyst at Abacus CPAs, LLC. He specializes in tax and accounting services such as tax returns, tax resolutions, bookkeeping, compilations, and more. Tucker is passionate about partnering with entrepreneurs to help them reach their financial goals.