Doing something great, doing something outside the box is the greatest reason for the trouble to come, situations to occur and obstacles to magically appear. Beginning your own business is no different. In beginning your business, you develop a plan for starting and running the business; however, one often overlooks or isn’t prepared for all the obstacles and challenges that occur in the midst of beginning that business. Opening a business brings out the social, economic, physical and emotional obstacles of life. Distractions of every multitude will and can occur and each of those distractions is basis for judgment calls. From prioritizing the handling of the distraction to ensuring its need for action or non-action; balancing your personal/family life and situations to those of the business. It will not be long before a person in business is tested on just how well he or she is able to handle the demands that accompany the new venture.
Adding to the above, in most cases, this new business is now becoming one’s new income so the financial pressures to make sure that the company succeeds are great! Remember prior to the new venture, it was a job, a steady pay check, an amount for the budget and when an entrepreneur begins a business, or is even running a business; the financial dynamics are different. Often the business is priority because working capital is the only way to keep the business afloat. To underestimate the financial sacrifices that must be made personally is a mistake. To assume that revenues will always meet projections and thereby spend money not yet earned is a larger mistake. Not understanding that overspending is a ‘house of cards’ waiting to fall and that the fall-outs will be years and sometime generations to come is much larger mistake.
When you hear the terms, ‘count up the cost’, is not just a fictional wise tale, it is a reality. In the pursuit and building of your business, your passion and emotion can often make you the least likely person to view and plan objectively. Even if the business takes off fast, momentum often shifts in a business and plans have to consider the shifts. Personally, people miss the momentum shifts in the finances and people tend to bring the same knowledge or lack thereof as it relates to money into the business, which is a huge mistake, but you cannot add or bring things to the table you do not know or understand. Money is one of those taboo things and while personally, one can hide his or her lack of savviness with finances, it can’t be done so easily when running a business. The lack of knowledge and management will show up and show the entrepreneur up.
Consultants are critical to the entrepreneur. As a bookkeeper, it is pointless for me to calculate and do revenue and expenses for one each month without having a consultation or a meeting to review what has been done. It’s critical to understand where the money is being spent, to separate the personal from the business, and to manage the money effectively for growth and possible expansion.
Without revenue and expense reports, the entrepreneur can’t qualify for a loan to expand or for working capital, there are insurance matters to review that play a part in one having the ability to acquire a loan. Consultants assist the entrepreneur in navigating through the complex and potential circumstances of their business. Most people wait until it’s too late to consider having a consultant/bookkeeper and in doing so, bring on unnecessary stress, as well as potentially losing their investment.
Don’t build a business that you could possibly lose. Call today for a free consultation.
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