There are no doubts that are lots of startup businesses that have grown into a big success and some have failed. You have quite noticed that the basis of success and failure of a business is the financial situation. Please know that referring to “financial situation” I don’t mean the amount of money that a company has at a particular time, but, where the company’s funds have been spent, the company’s outcome after making a financial decision, and so on.
Every entrepreneur would love to have a successful business after starting it up, but one thing every entrepreneur should know is that there is much more to business than just manufacturing the best products, offering the best services, and having talented staffs.
As a business owner, you need to be disciplined, have a solid financial plan, and good bookkeeping practices. With all of these in mind, we would love to share with you 12 Do’s and Don’ts for a Successful Entrepreneurship.
Let’s jump right in!
DO make your business and private accounts separate:
One of the things that have made “big” business ventures to succeed is this rule. We all know that it is not so appealing to sit down in the bank for hours, thereby, wasting that precious time of yours. Due to this fact, it is necessary for you to open a separate account for yourself and for your business.
If you have the ability to devote a credit card to your business, then, that will be good.
It is important to know that if your business and personal account is jointed, it will have some effects on you. Why? Because, there may be situations where you need to untangle the account and make them separate- this will be time-consuming, thus, shifting your attention away from your business.
DO make a budget estimate:
When you make a budget, it also goes in line with your business plan. As an entrepreneur, always remember that a good budget forecast will go a long way in helping your new business in a long run.
DO ensure that you know where your business revenues come from and also where your expenses go to:
Do you know that big business companies and even the small ones have great knowledge about their revenues and expenses? However, when you monitor your books with accuracy, it helps you understand the rudiments of your business at all times. This will also help to avoid little errors that may occur from your daily transactions.
DO know about costs:
As a business owner, when you have the basic understanding of the fluidity of cost, it will make your business grow. If you can’t account for your daily expenses on why a certain amount has been spent on a particular product, then it will be difficult to make vital financial decisions in the near future. Moreover, spending your money unnecessarily is not so good for a start-up business.
DO have a financial accountant and keep tabs on your CPA:
If you don’t know about accounting, it may be difficult for you to accomplish much success in your business. In this early part of this article, i have emphasized the need to understand your financials, but it doesn’t mean that you need to become a professional and knowledgeable when it comes to accounting. You can employ a financial accountant to help you with your daily book-keeping tasks.
Also, you need to always take a look at your CPA to enable them to evaluate your financials – this procedure will help your business a lot!
DO ensure you have an expert accountant for your busines:
Just because your brother or family member had an accounting class in college doesn’t make them an expert, and the 6 months that your close friend worked in an accounting company does not make him/her a professional bookkeeper.
However, as a business owner, you need to know that if you entrust your business financials into the wrong hands, your business is bound to fail. So if you are thinking about the cost of hiring an expert, then you shouldn’t, because, you will get what you pay for.
DO know that low financial reports scare investors away:
We all know that having low financial reports scare lenders and investors. However, the need to impress people that can help your business is vital. Do you know that part of your business growth also depends on them?
DO have higher business goals and foresight:
The need for an entrepreneur to have business foresight is vital. A business can’t grow if there are no higher plans that are made. Hence, as a business owner, set out more goals and the things you want to achieve and make them a dream come true by working on them immediately.
DON’T make your accounting practices lack at all times:
We all know the essence of good book-keeping measures. However, it is vital to know that, the need to always update your account books is necessary. Why? Because, if you don’t update them at all times, errors will accumulate and affect that business of yours.
There are some transactions that you thought you would remember, and you have failed to input them in the week, then it turns to a year and the details of those transactions have long been forgotten.
As an entrepreneur, you need to know that once you fail on your book-keeping practices, catching up will be quite difficult to do; it will also shift your attention away from your business.
Don’t always assume your financial accountant knows all about your daily transactions:
As a business owner, you don’t need to assume your financial accountant knows all about the transactions that take place in your business, in fact, it is a big mistake if you do so! With that being said, the need to always communicate with your staff is important, and not only with your financial accountant – these guys can’t read your mind every time!
Your financial accountant could assume some financial actions which are not correct. Due to this, you need to always take look at their work from time-to-time, so as not to keep your business off-track. After all, we humans make mistakes.
DON’T overlook or snub your financial:
Once you have started-up that business of yours, the need to know all about your financials is highly vital. You can also ask for help – this is not a bad thing to do. When you’ve gotten more answers, you will get more insights. To also have a good insight, you can set out time every month to review your financials.
DON’T underrate or belittle your financial accountant:
Most entrepreneurs are often baffled on where their business profits go to, immediately when they are faced with this question, they put a call to their financial accountant or book-keeper. It important to know that your accountant knows the right answer to where your money has been spent.
Following these “12 Do’s and Don’ts for a Successful Entrepreneurship” will be of great benefit to your startup business. Nevertheless, I have emphasized on the need for a strong accounting practice, keeping good financial records, and also having a solid layout plan – all of these with brilliant staffs will ensure the growth of your business. Irrespective of the challenges that you might face in your business, ensuring good accounting measure will help you stay on track.