Business Growth
As a business owner, you used your expertise and hard work to create a successful business that would fulfill you financially and emotionally. But, during this journey, you will face the inevitable question of when and how to scale or expand in new directions. This is when seeking professional guidance and support can take you to the next level. Business growth requires analyzing several areas and creating a team of experts who will give you sage advice to make solid decisions.
Business Growth Conundrums
Timing
Every start-up or current business’s dream is to grow sustainably into unimaginable success and expansion. Despite expertise, talent, and passion, companies can still fail.
Making the right move at the wrong time can have a devastating impact. Engage with your accountant and financial team to plan expansion, make big purchases, and maximize tax strategies.
Financial Readiness and Commitment
With business growth comes financial commitment. Unless a business owner receives substantial funds from mega million-dollar lottery winnings every year, the likelihood is that a business must, at some point, seek additional funds from more realistic sources to help it move to the next growth phase. Understanding the terms and realizing the financial commitment is what a Professional can explain in simple terms.
Increased Operating Expenses and Cash Flow:
A bigger house means higher mortgage, insurance, and utilities. This is how you need to look at your business growth. Many businesses fail because they don’t grasp how to manage their Cash Flow and control operating costs. Take time to strategize how you will tackle new purchases, operational costs, and cash flow.
Assuming Debt vs Managed Debt:
We can all apply for loans, and in today’s market, it is fairly easy to get one, assuming it is at a reasonable cost and not from a fellow standing in a dark alley. However, managing this debt is another story by itself. Businesses fail to understand how to properly plan or allocate part of their profits from their business growth to servicing their debts. So to achieve true financial stability, managing the business debt is an integral factor that needs special attention. Remember you are not growing your business to make the lenders rich; your goal is just to give ENOUGH to reach your own financial abundance.
Updating business entity type (C-corp, S-Corp, LLC, etc.):
Many businesses need help with the type of business structure they need. Each entity type has its pros and cons, not to mention different regulations and compliance. It is, therefore, essential to understand the benefits or disadvantages of each business entity type and how it may apply to each individual who wants to start or convert an existing business.