3 tips for start-up success
Many businesses start up, but very few of them succeed over time. In today’s post, we are sharing three ways that successful start-ups get started, for you to avoid critical mistakes.
Before embarking on your business venture, the best advice we can give you is to ensure enough start-up capital is allocated for professional assistance with the following. That way, later, when business is picking up, you will be in the best position to seize opportunities and blast ahead of the competition. You won’t be losing time putting out fires and paying your accountants to fix things instead.
Set up your business with the right entity structure
When you establish your business, you have to choose your business entity type and register it with ASIC and the ATO. Most entrepreneurs have no idea what type of business structure they should set-up and end up taking advice from friends or family. They then use cheap online methods to lodge their own registrations, thinking it will save money.
By choosing the wrong structure you can open yourself up to lawsuits that can affect your personal assets and business intellectual property, and you could be subject to higher income taxes. By engaging professional help early, the costs of correctly restructuring can be avoided.
Have a budget
People always cringe at the word budget. Why? Well, because it can seem daunting to gather all the “numbers” for your new business in one place. Plenty of business owners find it hard to estimate expenses and don’t know what their revenues will be. The best thing I can tell you is do some research, look up some benchmarks, and just start! You need a budget in place to ensure you are not over spending in the early stages of the business. You can also use your budget to track your financial goals and ensure you are meeting your projected revenues. Having even the most basic budget in place makes you accountable for reviewing your numbers regularly. The knowledge gained from understanding the differences in your budget and what really occurred is invaluable in making educated financial decisions as you grow.
Engage a bookkeeper for your new business
Most businesses owners have no idea how to handle the bookkeeping for their business. Or they have unrealistic expectations of their cloud accounting software to do the job for them. They invariably end up paying more for accountants to fix the books, money that could’ve been better spent on valuable advice.
Let’s face it. You can’t fake it til you make it with bookkeeping.
You may try to track things in an Excel spreadsheet or keep receipts in a box, but you aren’t really tracking and analysing the finances for your business. It’s a waste of your time too. Eventually, soon, you will need a bookkeeper or accountant to properly construct your accounts with bank reconciliations and balanced financial reports for tax and corporate compliance.
By avoiding the bookkeeping for your business, you can’t make educated decisions for your business or get timely advice from accountants. You won’t succeed if you are making decisions based on assumptions that are not being tested against real-time data and facts.
Tracking your revenue, expenses and reconciling your bank accounts are the number one way to ensure you are going to succeed.
How can we help?
Contact Us for a tailored services package to help with all of the above, and get off to a great start-up!