When it comes to running your small business and managing your finances, there is plenty to learn (and often not enough time). Most business owners don’t come from a finance or accounting background, and end up having to learn all the basics of bookkeeping, funding, and what matters to lenders and investors as they’re running their business.
If you’re feeling a bit lost, we’re here to help! Let’s start with some practical do’s and don’ts to get you and your small business on track for success.
Chase Your Passion, Not Just Money
For entrepreneurs like Guy Kawasaki, Cheif Evangelist at Canva, it took nearly 20 years to come to understand that successful companies are the ones who create meaning. As a small business owner, your number one priority shouldn’t be trying to find investors who will help you cash out on your business. That’s definitely not what investors want to hear right off the bat. Instead, Kawasaki recommends focusing on “creating the next curve, rather than improving on sameness”. Dare to be different, follow your passion, and your business will reap success in the long run.
Do Remember That Your Team Defines Your Business
Hiring a “dream team” is critical to your small business success. If you’re a beginner entrepreneur, remember this: investors put their money in people, not just a business. Hire people who not only bring industry expertise but also people who have passion and willingness to learn and grow with your business!
Do Select Investors that Actually Care About Your Mission
Don’t waste your time with investors that aren’t in it to support your mission. Choose investors who align with your values as passionately as you do. Apply the same filter when fundraising for your small business as you would when you’re hiring your “dream team”. As Barry Moltz, author of Bounce!, says, “Fundraising has never been about capital—it’s about people.”
Think of your investor as an ambassador of your business. This person is going to be an extension to your business—representing you and your small business to the external, wider community and on every facet of the media including online, print, and in-person. You also want to make sure they’re aligned with your dreams and goals as they’re going to be able to introduce you to other like-minded people who might want to support your business further!
As author and motivational speaker, Simon Sinek, says in his Ted Talk: “The goal is not to sell to people who need what you have, the goal is to sell to people who believe what you believe”.
Do Leverage The Latest Technologies in an Economic and Cost-Effective Way
Today, pretty much anyone can start a business on a minimal budget thanks to the wide range of online tools and services available. There are tons of tools that are purpose-built to improve your workflow as a small business owner and to help save you time and effort when it comes to managing different aspects of your business.
Take advantage of new technologies like Digital Wallets, Automation, and Machine Learning that have been built into your day-to-day business tools. Automate your social media with tools like Hootsuite or Later. Provide more convenient payment methods to your clients like Apple Pay and Google Pay with TrulySmall™ Invoicing. You can even host conferences online with tools like Zoom or Google Hangouts!
If you’re starting out in the business world with little to no understanding of the financial aspect of running a business, then luckily for you, leveraging TrulySmall™ Accounting for your bookkeeping can help eliminate redundant administrative tasks from your weekly to-do list indefinitely! Switching to cloud accounting provides you with great efficiency benefits such as the ability to connect your books to your bank account. Every time you make a transaction or receive a payment, TrulySmall™ syncs with your bank account to automatically pull transactions into your accounting software—data going straight into your pocket for later. Keeping track of your business transactions has never been easier!
Don’t Under Value The Effectiveness of Proper Bookkeeping
A common mistake that small business owners make is forgetting to log their business transactions when they happen. This builds up a lot more work for you at the end of the month or fiscal year and can cause a lot of stress and headaches come tax season! Thankfully, all of this can be avoided when you use a cloud accounting software like TrulySmall™ Accounting. TrulySmall™ makes it easy for you to stay on top of your bookkeeping so you can be confident you won’t be audited by the IRS or CRA. Inconsistent bookkeeping can cause you serious stress when it comes time to file your taxes—and it’s totally avoidable!
TrulySmall™ Accounting is even available on mobile so you can record all of your transactions on the fly. View and share your reports from any of your devices, meaning you’ll know where your business stands at-a-glance. Avoid missing legitimate tax deductions that you would’ve otherwise received by never having missed paperwork or expenses again!
Don’t Forget To Keep Track Of Your Numbers
For a lot of small business owners, it’s not knowing what to do with your cash flow that ends up hurting you. Too often, small business owners don’t understand their financial statements well enough to know when a product line, new product features, or customer account is costing them money. As your business grows, it will need more cash to finance its growth AND the insights to make important decisions that guide your business. Stay on top of your financial reporting so you can see exactly where you stand at all times.
You Don’t Have To Journey Alone—We’re Here to Help!
If you’re interested in making more accurate, smarter business decisions, then why not take the initiative to manage your books properly? Try TrulySmall™ Accounting today to tackle some of your small business “Do’s” and avoid some of those “Don’ts”! Try us totally free for 14 days!