When is it time to bring financial support into your business?
That’s a tough question but one we get often. Start by asking yourself some questions:
Are you able to understand and learn from the finances of your business? If you can read your profit and loss statement and know what you need to do financially going forward to improve your business, then that is a sign that you might be okay for now. If you have trouble reading your reporting or it isn’t even assembled in a way that you can read it then you should be actively looking for help.
Are your books organized well enough so you aren’t using “bank balance accounting?” All too often business owners look at their bank balance and make financial decisions based on the number they see. Most business owners understand this is not the way to safely navigate cash flow but since they don’t have the person or people in place to aggregate all their financial information in one place, this appears to be the only route. If “bank balance accounting” is your norm, it’s time to find someone to help.
When was the last time you updated and reviewed your books? If it wasn’t in the past week, it’s time for someone to get on board with you.
Are you constantly saying “I need to update my books?” If the task of doing your books has become more of a monkey on your back than a simple task, it’s time to get help. Stress from an unfinished task does nothing to help a business owner grow and in fact can slow them down.
What is the best use of your time? If you hire someone for $1000 per month to just update your books and provide you with accurate reporting, do you think you can make MORE than $1000 with the time you’ve freed up to actually DO your business? What if you brought someone in for $2500 to do all your payroll, accounts payable, accounts receivable, updating and reporting? Can you make more than $2500 with the time you now have given back to yourself? If you CAN make more money with that time then the answer is a resounding YES! It is time to bring financial support into your business.