Small Business Growth: Getting The Numbers Right To Succeed

If a business is earning revenue, is it successful?

What defines a successful small business?

The answer is always visible, if the numbers are right. A solid cost management and savings foundation ensures a business owner is able to focus on sales growth, marketing, customer service and industry trends.

At this stage a business owner needs to know if they should stay in the business or leave to pursue a better or more fitting opportunity for their skill set.

Most small business owners today have rushed into starting a business with no long-term strategic vision. For example, an established franchise can promise sales, however there is a huge mismatch between a franchise image and the owner expectations. Its important that a business owner has the skill set needed to run the business they are choosing to be in. Some franchises provide no operational business model to be used, this leads to an owner having to pay high franchise fees (part of a legally signed contract). As a result, the owner is not able to leave or stay in the business as they incur debt, no profit, stress, high-turnover and loss of control over their livelihood. The owner is not able to retire or develop their skill set to move on to another source of income. Their personal life suffers causing health, relationship and financial problems.

Before investing time and money in a business its better to know in numbers and through research which small business suits you. In order to succeed having steady sales, profit and employee morale is needed for the business to be a long-term optimal source of livelihood for the owner. Its important to know the opportunity cost of starting the right or wrong business.

“In extensively researching capable entrepreneurs, it is apparent that their accountants are regularly their primary “go to” professional. As so many critical business decisions are entwined with the financials of the company, these entrepreneurs depend on their accountants to help them navigate the possibilities and make wise choices. This is not to say that other types of professionals are not also consulted at various times. It’s just that accountants are consulted more often and – very importantly – their erudite opinions carry a great deal of weight.” Accountants: The Primary Advisor For Business Owners (Forbes)

If you are at this stage with no foundation and still feel it’s the right business, it’s important to start the building the 360 base to manage costs and get the 360 numbers right. Accounting 360 Solutions has the knowledge and experience needed to provide a factual, trustworthy and truthful assessment of the long-term profitability for your business. It’s important to invest in operational advice to ensure unexpected audits, bankruptcy or other legal issues are addressed pro-actively.

Once a 360 foundation for cost management has been built and the 360 numbers are right for the business to be successful, a business is on its way to measure success and ensure continuous growth.

Stay tuned on How to Measure Success For Continuous Growth!!