Have any of you seen the show Shark Tank? In case you haven’t, entrepreneurs go into a daunting looking room with some of the most successful people in the world of business in hopes of landing a deal that’ll take their business to the next level. Typically, the entrepreneurs need the “sharks” help in terms of expertise and funding for things like licensing, branding, growth, manufacturing, etc. Sounds like everyday issues for business owners, right?
We love to see clients undergoing these changes, expanding their horizons, and creating their own empires. Yet despite how excited we get for our clients, we tend to be the voice of reason and only because we’re on the numbers side of things.
What do we mean? Basically, when we do the bookkeeping for our clients, we see the activity in their bank accounts, know where they tend to spend the most money, see what’s going on with profit and loss statements, and overall see if the books are in the black or in the red, which is vital to know in terms of growth and expansion.
Business owners need to understand where they are financially, especially if they want to do things like add more employees, open a second location, maybe even go with the franchise route. If you can’t measure it, you can’t manage it. We’re here to let you know what you need to keep in mind if you want to take this next step in your business.
These are some of the basic things entrepreneurs need to analyze:
- First and foremost, is there a demand for the industry you’re in that’ll make growth an easy possibility?
- What kind of figures do you have now? Are you just getting by or are you on the upward trend for doing better business each year?
- Do you know what the cost of each item is? Is there a way you could get it cheaper? A lot of times you’ll hear people say in regards to this, what are your margins? Are you making your items or providing a service at the right price point so that you’re not spending too much and making a good profit?
- Can your business support hiring more staff, rent, utilities, inventory, etc.?
- Have you had successful marketing and are you reaching the most people as possible?
- In a similar regard, are you providing a service or product that’ll reach the masses or are you in too small of a niche that it’ll hurt more than help?
- Further, do you have enough time to invest in the growth and manage the extra work, hours, training, paperwork, and the like?
Growth is fantastic, there is no denying that! But it also takes twice the elbow grease and dedication in order to keep your business not just afloat, but thriving. We’re here to help our clients reach their dreams and make the numbers make sense. These things aren’t everyone’s forte and we understand that. We’ll do our best to translate these critical points into a language that’ll make the most sense to you. So if this is what you’re aiming for, contact us so we can help expand your empires as easily and efficiently as possible!