Steps to business success

Planning on starting a business in 2016? Starting a new business may seem straightforward, yet many things are often overlooked. We love helping entrepreneurs succeed and make a change, so here’s a list we have compiled of some important considerations when starting or expanding.

n Stay on top of your books. Playing catch-up is never easy. Starting late with your bookkeeping makes it harder to balance accounts, forecasting scenarios and monitor progress. As the old adage goes, you can’t manage what you don’t measure.

Whether you do the books yourself or outsource it, make sure that the books get completed and closed at the end of each month. SaaS tools, such as QuickBooks Online or Xero, save time (live bank feeds) and help you collaborate with business partners.

n Set up a business bank account. Separate your business and personal accounts, especially if your business is set up as a sole proprietorship or LLC. This keeps personal and business cash flows separated and easy to track, making bookkeeping a whole lot easier!

- Advertisement -

Set up a business checking account and run all the business income and expenses through it. Get a debit or credit card for the account, then set up QBO (or Xero) to automatically pull in the transaction history.

n Find the right entity type. The type of entity you utilize – LLC, S-Corp, C-Corp, etc. – has implications beyond what many initially consider. Each entity type has tax, reporting and compensation implications. Will you be hiring? Raising capital? Bringing on new partners? Your entity type will impact how these events play out.

Discussing this with multiple professionals may help you find a good fit for your taxes. Plus, many will consult free of charge if you aren’t yet a client!

n Build a relationship with your banker. Bankers have seen it all and can be a great asset. Getting a loan can become a lot quicker and easier if your banker knows you well, and has faith in you to repay. Trusting your banker can give you the confidence to borrow money to leverage business growth.

Start talking to bankers long before you need a banker. And find one that you “connect” with. Banking is personal and requires trust on both ends. Don’t treat your banker like a checkbook; keep an active dialogue with them about your business.

n Outsource payroll. You can’t be an expert on everything, so be an expert on your business. Hire a payroll expert to run payroll. The costs incurred are an apt investment.

Your bookkeeping firm or CPA may provide these services or can give you a recommendation. Often they can provide a better rate as wholesalers of national providers such as ADP or Paychex!

n Add important deadlines to your calendar. There are lots of deadlines. Many more than April 15th. There are quarterly payroll filings, annual reports, estimated taxes and more. Not staying on top of these can lead to unnecessary fines or even an audit.

Be sure to check out the IRS website in the beginning of 2016 when they release the correct dates for the year; also check past 2015 dates for an idea of when they may come up.

This doesn’t cover every aspect of a business, but from experience in the startup world I have seen many entrepreneurs overlook these issues. Whatever business you are in, enjoy it. And remember: Never be afraid to ask for help, you never know what may come out of it. •

Steven Byler is chief operating officer and co-founder of GrowthLab LLC, a financial partner and adviser for small to medium-size businesses.

No posts to display