MM Accounting has seen our fair share of small businesses starting up. As a virtual CFO service, MM Accounting serves wide-eyed entrepreneurs with bold visions and big dreams. Our primary aim is to provide the kind of financial insight that helps these businesses flourish. Without a doubt, accounting expertise is critical to keeping your business afloat. However, there are a lot of other helpful tips to follow if you’re considering starting a business.
Admittedly, there’s no perfect, universal formula to follow for success. If there was, every business would be a triumph. However, we’ve gathered some tips from successful entrepreneurs to help you if you’re planning on starting your own business. Keep reading to find out more!
1. Learn Everything You Can
When starting a new company, you may feel tempted to chew everyone’s ear off about it. It’s hard not to whip out a mission statement or product details to everyone willing to lend an ear. However, when starting a business, it’ll benefit you much more to listen instead of speak.
Basically, you can never, ever learn too much. Study and absorb absolutely everything you can. In this case, consider the best resources and learn from them as much as you can. Also, be mindful of how people react when you discuss your company with them. Take notes of their responses, their body language and enthusiasm. Whereas this may seem trivial, it can help steer you in the right direction. Encourage honest, uncompromising feedback, because it can be tremendously valuable.
2. No Excuses!
How many people do you know who talk about starting something new? Also, how many of those people never start, reciting a wide range of different excuses instead? Most of the time, things like cash shortages, kids, time and fear of failure stop people. Admittedly, starting a new business is scary. However, if you want to succeed, you need to address these factors and get them out of the way quickly.
If you’re worried about things that might interfere with your business, take care of them immediately. For example: if you’re concerned about time, focus on allocating a coherent schedule in advance. This way, you can go in knowing this issue has been taken care of. Eliminate the obstacles that’ll slow you down beforehand.
3. Focus On Your Solution
So many business owners begin by establishing what they’ll be selling. They know their products in and out and are passionate about them, as they should be. However, rather than focusing on what you’ll be selling, focus on what creative solution you’ll provide.
What problem will you be fixing with your products or services? For example: if you’re starting a handmade soap company, you’re not just cleaning hands and bodies. Rather, you’re providing a necessary replacement for commercial soap that dries out and damages skin. Therefore, your soap softens, conditions and moisturizes skin. Make sure prospective customers know the solution you provide. This way, you can refine your brand and identify your customer’s needs.
4. Calculate. Every. Expense.
Honestly, this is probably the most important tip we can give you. As a virtual CFO, we understand the critical role financial acumen plays in keeping businesses alive. Once you start planning your business, you must calculate and keep track of every single expense. And by every expense, we mean it – every expense! There’s no excuse for sloppy bookkeeping.
In fact, once you’ve calculated your total business expense, take that number and multiply it by four. Yes, that’s right – by four! No matter how many costs you identify in advance, you’re going to be hit with expenses you never saw coming. Quadrupling your total expense sum will account for those costs. Calculating these expenses in advance will help you to develop budgets and payment terms.
Conclusion – MM Accounting
While these are reliable tips, they’re just the tip of the iceberg. When you’re beginning a small business, there’s an infinite amount of solutions for every problem you encounter. However, these four are the most integral to the beginning phase of any small business.
At MM Accounting, we can provide the kind of critical financial wisdom you need to help your business succeed. For more information, contact us today!