Best case scenario: your business takes off.
Worst case scenario: your business takes off and you’re not ready.
When you’re running a business, it’s natural for the blinders to go up. Every day is new and you’re caught up in reactions as invoices go out, new business comes in, and deliverables need to be fulfilled.
And you know what, sometimes it’s all you can do to keep the ship afloat — to run from a reactive place. That doesn’t make it sustainable.
Whether exponential or slow in nature, growth will creep up on you. If you’re not prepared for it, that’s when mistakes happen. Clients are lost, cash flow slows, and the growth of your business can come to a screeching halt just as quickly as it exploded.
Ask Yourself What If?
If you want to avoid having to rely on reactive management, train yourself to be proactive. This means making a habit out of asking questions.
As you build out your business plan and long-term goals, include asterisks to account for the “what ifs?” What if sales explode on account of my marketing plan? What if my pricing structure can’t account for a spike in clientele? What if I need to hire quickly, and where will they sit?
Getting used to thinking from this mindset will ease the pain of preparation over time. And leave you in a better position to deal with hurdles as they arise.
Put Processes in Place
It’s never too early to put a process in place.
Even in the earliest stages of business, what works for your company today may very well change months down the road. And, as needed, your processes can change, too.
If you want to get ahead of growth, invest in building your financial engine. Scrambling to put the pieces in place only when the time calls for it is a prime way to lose control of the chaos.
Know Your Numbers
We can’t preach this enough. Know your numbers. And not only that, be cognizant of the story they tell.
You need to be able to tie influxes in your financials to other areas of your business operations in order to plan strategically. Reference your KPIs to ensure you’re on track.
Hiring is a great example of when learning from the numbers can come in handy. Maybe you know from experience that it takes two to three months to hire staff. At what financial threshold does it make sense to grow your team? With an understanding of both, you can work to get ahead of hiring without risking the quality of service amidst business growth.
Be Mindful of Cause and Effect
Keep in mind that when one area of your business grows, it’ll usually cause an increase in other areas as well. This can be said of bookkeeping.
As your books increase in volume and complexity, the man-hours (and cost) to upkeep them will as well. There’s a cause and effect to everything. And if said rising costs are inefficient to maintain, find a way to automate or mitigate them with strategic alternatives.
If you’re not already watching and monitoring operational growth on a consistent basis, don’t wait until it’s too late. Contact the team at Officeheads for more information on proactive tax preparation, owner payroll tax planning, and every financial pillar in between.