Owning your own business is a constant rush of emotions. One day, the high of a huge sale can be followed by the stress of how to implement a social media strategy. As a business owner, your skill set needs to be diverse and your time managed efficiently. From finances to marketing, you are the ultimate boss and it is easy to get overwhelmed with all the tasks at hand. One thing all small business owners are working towards is business growth. However, growth when not planned for accordingly can actually be detrimental to your business. If your business is experiencing rapid expansion and you are looking for some guidance, then this article is for you. Read on to learn some first-hand tips on how to manage your business finances during a time of expansion.
What should you look for?
If I can offer one bit of advice, it is to find a high quality payroll software for small business. For a long time, I was doing all of our payroll myself using a series of Excel spreadsheets. I thought I was doing myself a favour by saving money doing it myself, rather than implementing a software that had a monthly fee.
Finally, someone convinced me to give a software a try and I was really blown away at how much time it saved me, and how much I learned about the complexities of payroll. The time I saved using the software opened time for me to work on sales, distribution and marketing which brought in way more revenue than it was costing me for the payroll system.
How should you look for it?
There are a lot of systems out there. Find one that is intuitive, quick and efficient. Most softwares will offer you a free trial. Give it a go, and you will never look back to the manual way of life again! Be sure that the chosen software offers a way to manage payroll, wages, annual leave and Superannuation. Find one that has a flat rate for an unlimited number of employees so you aren’t being charged more as your business grows.
Why should you manage finances before and during growth?
Sometimes, massive growth can happen overnight, and sometimes it happens at a gradual rate. Regardless of how your business is growing, it is important to have three key components in place: cash flow to manage growth, growth planning, and finances needed to maintain and sustain the growth. When that dream order comes through, you want to be sure you can execute it without sinking your own business.
A common mistake of business owners is to jump into the growth and use too much cash flow leaving the company unable to pay for business as usual costs. So get planning, delegate where needed, and be ready to say a solid YES when that phone rings!
Owning your own business is a dream for many people. Turning your passion into a career and setting your own hours are major perks of being your own boss. However, it also means you are in charge of every small thing needed to maintain and grow your business. Finding ways to delegate to employees or software solutions will a key to your success. Your time is worth a lot, so use it wisely and enjoy the growth and expansion of your well deserved hard work!
