Challenges of a Business Owner
You own a business and now you have to understand all the technical terms thrown at you from your CPA, financial advisors, bankers, lenders, etc. It's a lot to remember and we get it! The reality of building a business often involves navigating a landscape that can feel both thrilling and, at times, overwhelming.
Here's what we're aiming to do in today's blog. We're going to be explaining as much as possible in PLAIN ENGLISH!
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The Unpredictable Path
There's always going to be a level of uncertainty when doing business. These "I'm not so sure" or "I don't know" moments can be intimidating. But, guess what, it happens to ALL of us in the business world. Some folks are just riskier than others when decision-making. But, there's always a level of uncertainty that creeps up for all businesses.
How do we deal with that?
One of the first things we're told is to create a business plan. It's intimidating to put something like that together knowing we are unsure about what is actually going to happen. Guess what? It's OK to have a business plan that shifts as and when reality hits and new trends develop. That's why it's so important to start off on the right foot keeping your business finances organized. It's hard to navigate your business if your basing growth on what's in your bank account instead of what on your balance sheet and income statement. The market shifts, customer needs evolve, and unexpected challenges arise. Expect your business plan to shift as you learn, adapt, and respond to real-world feedback. This agility is not a sign of failure, but rather a crucial element of growth.
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The many hats you’ll wear
As business owners, we first learn how to wear several hats. In the early stages, you are the CEO, the marketing manager, the customer service representative, the bookkeeper, and everything in between. It might even include being our own tax preparer! Embrace the learning curve, but also be mindful of your capacity and when it's time to delegate. There are some common signs too look out for that tell you you might be outgrowing the DIY or solo-bookkeeper structure.
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When It's Time to Bring in Reinforcements
Knowing when to ask for help is a sign of strength, not weakness. Some of the signs that say you need an accounting and finance team are:
You don't know what is on your balance sheet or income statement and no one is explaining it to you;
You're consistently working unsustainable hours and feeling burnt out;
There are recurring expenses you have no idea what they are for at this point in the game and no one else is monitoring these expenses for you to tell you maybe it's time to cancel that subscription;
There are too many avenues you are receiving customer payments from and therefore, no ability to create a reliable revenue forecast. Reporting customer revenues is getting out of control;
Overall, there is no financial structure. Whoever gets to paying the bill first does it and you might be relying too heavily on your administration team to handle the important vendor contracts for you; and, last but not least,
You're spending more time on low-value tasks than on strategic initiatives.
The above might also mean you'd benefit from a tech stack assessment to implement ways to improve processes and implement automations. Inefficient processes and outdated tools can bog you down just as much as a lack of manpower. Explore software and systems that can automate repetitive tasks, streamline workflows, and provide valuable insights, allowing you to work smarter, not just harder. Hiring strategically and implementing efficient processes can free up your time and expertise to focus on the core vision and growth of your business.
To wrap it up…
The entrepreneurial journey is a dynamic one. Expect the unexpected, be prepared to wear many hats, and recognize the crucial moments when it's time to seek support, whether through hiring or leveraging technology. By embracing this reality, you can navigate the challenges and build a sustainable and thriving business!
Stay tuned for our next tidbit of insight…
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