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How To Keep Your Company Growing Financially

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Today David Olson is writing for us with tips on how to keep your company growing financially. His infographic (below) shows the financial pitfalls that can happen, how they can hurt you, and how to avoid them.

Author bio: David Olson founded Virtual CFOs, LLC in 2003, long before the concept of a part-time CFO became well established. His previous 28 years of experience in private industry and public accounting made that possible. Since founding Virtual CFOs, he has helped dozens of companies improve their financial IQ, operations and prospects for success. 

Here's David's advice…..

Avoid These Pitfalls To Keep Your Company Growing Financially

Starting a business is a feat of alchemy. You’re taking a dream and converting it into realty through sheer force of will. Your ideas are the core of your winning formula — and no amount of money in the bank will guarantee success. Even the most well-capitalized startups may end up closing their doors without a careful plan in place.

However, you still need a strong financial structure beneath your feet if you want to continue reaching for the prize. This is why it’s crucial for entrepreneurs to be wary of the most common pitfalls they may encounter as they develop their businesses. You can’t turn lead into gold if you don’t start out with the right material.

With that in mind, here are some of the worst money problems you can face when starting a company, and also how to avoid them. Keep these tips in mind and you should be able to pursue your startup dream without coming up short.

Starting Out Without Sufficient Funding

The most basic problem for any entrepreneur is being short of funds. Many make the mistake of running out of startup capital before they establish a firm footing. This means they must raise more cash when they should be focusing on building a customer base.

The best way to prevent this from happening is to follow proper budgeting procedures and update your cash flow projections on a regular basis. When you’re meticulous about how you spend every dollar, you’ll always know where you stand. This ensures that you won’t be surprised by an empty account when you can least afford it and when what you really need to do it keep your company growing financially.

Spending Too Much, Too Fast

“Go big or go home” is an alluring mantra for an entrepreneur with lofty ambitions. However, that attitude may lead to you spend too much on fancy offices, advanced equipment or a massive advertising campaign right out of the gate. Making those choices also can put a huge dent in your startup funds or pile on debt at a critical time.

Starting small may not be the sexiest strategy when you’re trying to make a splash in your industry. But it may be the key to surviving your first few years in business. If major purchases are absolutely necessary, look at each expenditure carefully and think two or three moves into the future. It also pays to vet your suppliers thoroughly to ensure you’ll get your money’s worth.

Not Preparing for the Future

Opening your doors to your customers is just the beginning of your corporate journey. You should never stop planning ahead. Otherwise, sudden changes to the marketplace could leave you scrambling to react. Even if you’re not in a growth mind-set right away, there’s no excuse for being caught unaware by disruptions.

Your business plan should be a living document, not a sacred text. Review it periodically and consider if it needs to be adjusted. Your customer base or product offerings should shift in response to changes in the market, and you need to be ready for them. Build a strong, but flexible, internal culture. Be certain in your convictions, but don’t let your thinking become rigid. Being able to react quickly and decisively could make all the difference to your ultimate success.

Mixing Personal and Business Finances

Getting your startup off the ground takes blood, sweat and tears — but you also may need to dip into your personal bank account. While it may be necessary, it also can be extremely risky. Not only could it expose you to liability, but you could become confused about which assets are personal and which belong to your business.

This is why you should always maintain a separate account for your company. It’s also important to establish a credit history for your business by acquiring a dedicated credit card. Whenever possible, avoid spending your personal finances for business expenses.

Transforming your dreams into reality is no small feat. That’s why you want to avoid any missteps that could stymie your formula for success. Follow this advice to keep your company growing financially, and you’ll have a much better chance of building a business that will last a lifetime.

Keep your Company Growing Financially

Sources:

https://www.slideshare.net/VirtualCFOs/financial-pitfalls
https://www.entrepreneur.com/article/272403

 

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I left it too late to plan for a financially secure retirement. Don't make my mistake. Start building an extra income with a part-time (or full-time) business online. Think you don't have time? Can't afford the start-up cost? Can't meet sales targets? Contact me for free advice (no obligation) on the best fit for your circumstances.

Click Here to Leave a Comment Below 4 comments
jasa penulis artikel - December 24, 2019

Well written post about growing your company’s finances. Thank you very much. The infographic is a useful reminder too.

Reply
Jihan - December 25, 2019

Hi there,

Great article! Your writing skills are good. Growing your Company Financially is very important for us.
The article really helped me.

Thanks for sharing……….

Reply
NAVRAJ SINGH - December 26, 2019

Nice information, thanks.
Can you suggest some tips for me to grow my own website? At the moment I’m using comments on other people’s blogs to promote my site.

Reply
    Joy - December 26, 2019

    Hi Navraj,

    Certainly! I have a whole host of information that you can receive free when you subscribe to my Learn Internet Marketing list.

    I hope you will find them helpful. You can also use the all-in-one marketing package described in the emails to market your own business AND if you sell it on to your customers you can make an income that way too.

    Joy Healey – Blogging After Dark

    Reply

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