Your Business’s move from start-up phase to the growth phase doesn’t happen with a lot of fanfare. There may be no single, easy-to-identify moment when you relax and declare, “ Now we’re on our way.” But as your company picks up momentum, it evolves – and it’s critical that your business and financial planning keep pace with that evolution. Here are some important issues the owners of growing businesses should consider.
Business Processes. Policies, procedures and systems aren’t glamorous, but they’re essential to managing the increasing complexity of a growing business. Having established practices can help you delegate, freeing up time and head space for strategic planning. Consider:
Key performance indicators tracked weekly and monthly Formal mechanisms to collect and act on customer feedback Cash Flow. As a business matures, cash flow needs may change. You may start thinking about expansion: hiring additional employees, investing in technology or more inventory, or perhaps moving to a larger space. Cash flow, frequently supplemented by financing, can position a growing business to seize opportunities. Consider:
Cash flow projection Procedures to streamline payables and receivables A business bank account that offers a high interest rate and electronic transactions An operating/revolving line of credit A mortgage financing solution for your business property that allows payment flexibility Unforeseen Circumstances. Could your company survive if you or your business partner were unable to work? Would your personal assets be protected from creditors if your business were to fail? Partner with an advisor, with the assistance of tax and legal professionals, to build a comprehensive and tailored asset protection strategy. Consider:
Incorporating your business Personal life and health insurance Personal liability coverage Products offering creditor protection Spousal RRSP’S to transfer wealth to your spouse – and away from creditor risk Key person insurance Employee Retention. In a recent survey, most business owners and managers ranked labour costs as their primary worry. Flexibility, camaraderie and company culture are all reasons why people choose to work for a small business. Pair these advantages with a cost – effective benefits package to help attract and retain staff and improve productivity. Consider:
A human resources consultant A group benefits plan A group retirement plan Creative perks and incentives Personal Financial Planning. Sometimes focusing on the goals down the priority list. A personal financial plan – aligned to your company’s objective – can help you enhance wealth, reduce debt, protect your family’s lifestyle, develop a sustainable income stream in retirement and leave a legacy to loved ones. Consider:
Registered Retirement Savings Plans, Tax Free saving account, or non-registered investment accounts Personal insurance solutions Surround yourself with the right team
If you don’t already have a team of professional advisors in place, come and speak with me and I can asset you with all your financial needs. For more information about the specific ways an advisor can help you and your company, visit www.smartbusinessmove.ca.
Source: Solutions Magazine