Author: Jennifer Brazer

When starting a small business, you should make your business an LLC or Limited Liability Corporation. Creating it as an LLC or Limited Liability Corporation will protect you and your personal assets from being affected should your company have legal issues, including lawsuits or collections.

Outside of making your business a Limited Liability Corporation, you also need to obtain business insurance. Many business owners believe they are completely protected by becoming an LLC. Still, this assumption is incorrect and could be costly or even devastating to a company that does not carry business insurance. Here are three major reasons your small business needs business insurance.

Protecting Your Business Assets

While forming your company into a Limited Liability Corporation protects your personal assets, business insurance is necessary to cover your business assets. Both of these, in combination, will give you complete protection against lawsuits and disasters.

Small businesses often have financial struggles larger businesses don’t experience, and one liability incident could destroy your business. This possible destruction is the main reason every small business needs business insurance without question.

Business insurance will also protect your business assets should one of your employees makes a mistake that puts your business at risk for suit or other liability.

Protecting Your Personal Assets

Even if your business is a Limited Liability Corporations, there are still some circumstances in which you could be held personally liable. These circumstances include if you guaranteed loans with your personal assets or left any of your personal assets attached to the business.

Therefore even under an LLC, your personal assets could be lost if connected to your business, and you don’t have business insurance. Business insurance also covers court costs even if you are not found to be liable.

We live in a litigious society. Even if you or your business have not done anything wrong, if a suit is brought against your business and you are not covered by business insurance, your company could go bankrupt.

Liability Goes Beyond What We Can Imagine

There are so many hidden issues we can involve ourselves in as a business that could open us up to potential financial devastation without business insurance. Professional liability insurance covers accidents that happen on your property, it also covers libel issues, and it covers third party mistakes made by your employees or subcontractors.

There are many scenarios where you and your business could be liable beyond what you can imagine that business insurance would cover. Those small businesses that go without business insurance may believe they are low risk due to the nature of their business. Still, many unforeseen issues can cost you greatly if you are not covered by business insurance.

Examples of Unforeseen Scenarios

An employee is delivering something and accidentally breaks a $125,000 vase. Without business insurance, your company would have to pay the client $125,000 or risk court where the client could win more than just the vase’s cost. If you carry business insurance, it would cover the vase’s cost and protect you and your assets.

The classic slip and fall can potentially wipe a business out depending on the physical damage the falling victim incurs. You would be liable for not only the medical cost but potentially for loss of income and future medical costs if the issue is permanent or long-term.

Conclusion

Small businesses have many expenses that are a challenge to pay at times, and often small business owners will cut out business insurance to save the premiums. These reasons laid out above explain why you need business insurance and should make paying the monthly premiums a priority.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Bad debt expenses in business are those accounts receivables that have gone into severe default and are considered a loss. For businesses that operate cash only or payment upon service or purchase don’t have issues with bad debt expenses. However, some businesses, to some degree, feel they need to operate by extending some credit.

If your business accounting shows your bad debt expenses to be high, you need to consider reassessing your accounts receivables. Here are five ways to lower or eliminate bad debt expenses and increase your company’s revenue.

Review of Credit Policies

You should be reviewing your accounts receivables monthly and noting what customers are late or possibly going to become completely default. If you have some customers who consistently pay late or default, you may consider changing them to cash-only or payment on receipt.

If you have multiple customers paying late or not, you may want to contemplate eliminating accounts receivables. You have to make tough financial decisions that have the best interest of your company in mind. While you want to be accommodating to your customers, it should never be at the expense of your business.

Eliminate Terms

Any credit terms, whether 30, 60, or 90 days puts your business at risk. Giving long terms of payment can cause your bill to be forgotten or ignored. You may need to consider eliminating these payment terms or only offering these types of payments to specific customers on a case-by-case basis.

Early Payment Discount

If you continue to offer 30, 60, or 90-day payment terms, you can offer various early payment discounts. Many companies that offer early payment discounts will give a significant discount if paid on the day of purchase or service. You can also offer lower discounts if paid earlier than the due date.

This discount will allow you to offer payment terms and give your customers the incentive to pay when the products or services are received earlier than the due date. Despite the discounts, if every customer is paying on time or early, your company revenue will increase because you will be clearing your accounts receivables.

Collection Policy

If you opt to continue allowing your customers to make payments or buy now and pay later, you will need to put a collection policy in place. This collection effort will be a regular interval at which you will send reminders and follow up with phone calls.

You must set a collection policy that will make sense to the due dates and provide the customer with reminders while not overwhelming them. Customers have often forgotten the payment, and gentle reminders will encourage them to pay without alienating them. It is suggested that you have three reminders. One reminder sent at the 30-day late mark, then another at the 14 days from the first reminder, then a final phone call seven days after the previous reminder.

Collection Agency

A collection agency would be the last resort but may become necessary to recover at least a percentage of the receivable from your defaulted customer. After your final phone reminder, you should give them seven days then look to turn the debt over to a collection agency.

A collection agency will buy the debt for a percentage of the total account and attempt to collect the full amount or even the full amount with penalties from profiting from the purchased debt.

Conclusion

While your customers are important, and you want to retain as many as possible for your business, you have to take steps to eliminate or lessen bad debt expenses. Your business has to make a profit to survive, and the more bad debt expenses you have, the lower your profits. Some businesses get into trouble when these bad debt expenses exceed profits; therefore, you must consider some or all of the ideas on this list to help eliminate it.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Many people come to a point in their life where they decide they would like to start their own business. Maybe you are feeling underappreciated or that your talents are being wasted working for someone else. There could be many reasons you have decided to strike out on your own, and you need a business idea.

Before you start the process of choosing a business idea, make sure you are well-rested and ready to open your mind to the possibilities. Here are five steps to take to help you find your business idea.

You Don’t Have to be Original

Don’t apply too much pressure on yourself to come up with the next new thing. Search business ideas others have already successfully launched and maintained. There are so many business types, from the smallest home-based businesses to owning and operating a franchise business with major corporations’ branding.

Look for those businesses that tap into some level of desire or passion and explore them to narrow down the type of business you want to start. Once you have narrowed down the business type, look at ways to be unique or tap into a niche market. You don’t have to deviate much from the original business idea to add your brand.

Brainstorm with Someone

There is nothing that says you have to do this alone. Though the contemplation is for you to have sole ownership of the business, getting another person or, better yet, a team of people to help you brainstorm ideas can be productive.

Gather together, and if possible, have a whiteboard or drawing pad and express that no idea is a bad idea. If you are having difficulty connecting with someone to brainstorm, there are many online sources of articles or forums with multitudes of ideas you could add to your possibilities.

Turn Your Talent into an Idea

Everyone has gifts and talents often paired with untapped potential. Now is the best time to identify your talents and skills to their fullest extent and look for business ideas that use those talents and skills. This time is also where you can discover your passion.

So many times we get into long-term jobs or careers, we started of necessity and suppressed our passion and leave our talents to gather dust. Now that you decided to start your own business, it’s time to dust off your talent, gear up your skills, and ignite your passion.

Solve a Problem

Many businesses that exist today that have great success are those that solve a problem. Please make a list of problems that people face. Make sure it is a problem that most people or at least a group of people face. If you choose to solve a problem, only a few have, you will not sustain a business.

Even if there are already solutions out there for a problem you would like to solve, you can own a business in the market and still succeed.

Look Around for Inspiration

Open yourself up to look for inspiration everywhere. You can look at businesses that exist in your community or look online. Also, look for Inspiration that has nothing to do with the business. Inspiration and ideas can come from anywhere, and seeking inspiration will guarantee you find it.

Artists have muses or use nature or their surroundings. Those same sparks can inspire business ideas. You have to be open to the possibilities.

Conclusion

The ideas don’t have to come out of your mind, fully formed and perfect. Keep the thought that no idea is a bad idea and throw them out and narrow down to the ones that you feel a pull towards. Once you have narrowed it to one idea you have a passion for, it will be time to start planning.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Whether a person owns a multi-billion dollar company or works as a small-time freelancer, many of these business owners use the same account for personal and business, which is a mistake. Even though having more than one bank account can be inconvenient, a person should not use their personal account for business purposes as it can lead to legal liability.

According to business experts, the first step towards a successful business is to open a fresh business bank account. Cost is not an issue as most banks offer free business checking accounts, making it even easier for new business starters to open a separate account. Here are six reasons to have a business account for your small business.

Legal Protection

Every time a person wants to set up a corporation or a business, a primary benefit of doing so is the legal protection from liabilities that comes along with it. This is because the law looks at a corporation separately from the person who owns it. Therefore, if a party wants to sue a company, they can’t sue the owner as an individual. However, in the case of a financial association, a court can order an investigation regarding the owner.

Tax Advantages

Regardless of the nature of a business, having separate accounts has many advantages, including tax advantages. It does not matter whether a person sets up a Corporation, an LLC, or a Partnership. Sustaining a proper yet separate bank account will help them avoid pointless difficulties that may occur for your business.

Also, the IRS has strict rules for working as freelancers or from home about what they can deduct as business expenses. If a person uses their personal account for their business, the IRS may audit those deductions, regardless of whether they are legit expenses or not.

Credibility

If you use your personal account to cover accounts payable, the vendors or other entities you are making payments may question your business status. Using a separate bank account will make your business look more professional. A professional business account check will increase your credibility and legitimize you as a business.

Convenience

Having a separate business account and debit and credit cards specifically for your business will be convenient as you won’t have to figure out how to separate those expenses from your personal ones.  Reporting of expenses can be very intimidating and hectic, especially for smaller businesses. When monitoring business expenses, having a credit card or bank statement specifically for the business can prove to be beneficial. Using a card will also provide business with a credit line that won’t be an option with traditional banks.

These business credits and debit cards also offer many other benefits like travel discounts, higher credit limits, and a more streamlined billing process along with better interest rates. With that, many cards also give rewards like cash back on office supplies and other business expenses.

Processing Credit Card Payments for Business

Thanks to online shopping, customers rarely carry cash. So what does a person do when a customer shows up in your business with just a debit or credit card? Under these circumstances, a business account will be essential. A business account will make it possible to accept debit and credit cards connected to the account. The two types of merchant accounts that connect received payments to your business account.

• Transitional merchant accounts transmit card payments using a card machine
• Online merchant accounts allow authentic card transactions safely online

Accounting

Your business accounting and bookkeeping system need to be in place from day one of your business. If you don’t have your personal and business accounts separated, this can be an unnecessary challenge for your accountant or bookkeeper. If you are handling your accounting through accounting and bookkeeping software yourself, this can simplify the accounting process.

Conclusion

No matter the size of your business, having a separate business account is essential. Whether it is to avoid liability or confusion, it should be your immediate priority from day one of your business or before.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Anyone in business this day and age understands that the face of business is vastly different than it was even a decade ago. One of the largest advancements when it comes to business has been the internet and social media platforms.

When it comes to marketing your small business, you must use every avenue available to you, and having a heavy online and social media presence is the key. However, there are some mistakes that small business owners make when using social media. Here are the five biggest mistakes small business owners make on social media and how to avoid them.

Posting Too Much or Too Little

No matter the content of your posts on social media, you can post too much or too little. It would be best to find the balance between staying connected to your customers and followers and not over or under posting.

Bombarding your feed with business-related posts will flood your followers feeds, and because they are only getting eye-fulls of your content and nothing else, they may decide to unfollow or mute you. If this is the case, when they need your product or service, they may not remember that you offer what they are looking for, or worse, they remember that you were annoying with your posts and decide to give their business to someone else.

On the other hand, many business owners get off to a great start by setting up social media and gaining followers and interacting a bit, then go completely silent or post too little to make an impact. You are using your social media to connect with your customers, but it is an essential part of your branding. Social media platforms are where people get to know you, your staff, and your business, so you need to post often while holding back from posting too much.

Aggressive Sales Strategies

Aggressive or pushy sales strategies can backfire and often have the opposite effect on your sales and the desire to use your products and services when a need arises. If you ask most people how they feel about having a pushy salesperson approach them when they walk into a store or on a lot, they will tell you it makes them uncomfortable. The same can be said about using similar tactics when using your social media.

When representing a product or service of another company, those companies will push you to be pushy and center all their sales tactics around an aggressive approach. These people often get unfollowed when they are doing nothing but trying to push their products and services on you.

To avoid this, use soft sales approaches. Make videos that add value to someone’s life and connect them to you as a salesperson but don’t necessarily have to do with the product. This approach will make it easier for potential customers to approach you about what you offer. Or even if you approach them, they will be more receptive to what you are selling.

Bad Customer Service

It is no secret that many people use social media platforms to speak their opinion. Hiding behind a keyboard makes it far easier to say things we might not say if we were face-to-face with someone. Having said that, if a person gives a negative review or speaks of a poor experience with your company, you can use it as a customer service moment.

No matter the tone the customer is taking, you should always respond with kindness, understanding, and professionalism.

Not Engaging Followers

Your followers are not only those who have chosen to connect to you on social media. They are potential customers or future business associates. Many business owners who use social media fail to engage with their followers, leaving them feeling unconnected, and eventually, they will stop following you.

Find ways to engage them, whether it be by following back and commenting on their posts or acknowledging comments they make on your posts. Also, making your posts fun and engaging can positively affect your followers and potential customers or partners.

Poor Grammar

Having well-written posts representing your business should be a no-brainer, but it is astonishing how many don’t take the time to check before posting. Since everything you post to your business followers represents you and your business, make sure you check, then double-check, and triple-check for spelling and grammar. A few spelling and grammar checkers can be turned on within your chosen browser and used every time you post or comment.

Conclusion

There is no reason a business owner or marketer for your small business should make any of these mistakes now that you are aware of them and how to avoid them. Just keep in mind, as much as your social media presence can boost your business, if misused, it can also do damage.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Besides purchasing a home, getting a higher education can be one of the most expensive endeavors in your life. While some students get scholarships or obtain grants that don’t have to be paid back and others have parents who can afford to pay for their education fully, many students have no choice but to obtain federal student loans.

Student loan debt rivals credit card debt to be the number one debt most working adults carry. While this fact may be disheartening, all hope is not lost if you carry federal student loan debt as there are some ways to gain debt forgiveness.

Debt Forgiveness Programs

Student debt forgiveness programs were developed to show compassion for students with an overwhelming amount of student debt. There are many smaller and local programs you can apply for; however, you will have to do your research to find them.

There are four major debt forgiveness programs you can apply to; however, they will not take on debts of students who are in default status, which means they have not paid against the loan in over nine months. These debt forgiveness programs are Public Service Loan Forgiveness, Perkins loan cancellation, Income-based repayment, and Teacher Loan Forgiveness specifically for students who went to school to become teachers.

While each of these programs is widely available, they have extremely strict requirements that have to be followed. They often require the yearly filing of paperwork and intricate program rules and steps to follow. Because the amount these programs give out each year is limited, if you are using the program and have even one slipup when it comes to procedures, you are removed from the program. It is important to consider your options before using any of these programs carefully.

Other Loan Forgiveness Options

There are a few different types of occupation-based loan debt forgiveness programs available, depending on how you live. Such programs are mainly for attorneys, doctors, and other professionals who pay more than the average amounts for advanced degrees. Students who used such loans have a great shot of getting the entire debt forgiven after just five years. The process mainly depends upon the type of profession, particularly for the people who have a full-time job in a community.

Loanforgiveness.org

There is a government-subsidized student loan forgiveness program with multiple options under the plan, one of which may be right for you. All of these loans or debt forgiveness plans are only for students with federal student loans.

• Standard Repayment Plan: Under this plan, your payments are fixed to pay in full over ten years.
• Income-Contingent Repayment (ICR) Plan: This repayment plan is based on your discretionary income at the time of the plan implementation or a fixed monthly payment over 12 years, also based on your discretionary income at the time of implementation.
• Income-Based Repayment (IBR) Plan: This repayment plan is based on 10 to 15% of your income and will change if your income changes. There are two IBR plans, the standard IBR plan for students who obtained a federal loan before July 1, 2014, and the New Borrower plan for those who have obtained a federal student loan after that date.
• Pay as You Earn (PAYE) Plan: This repayment plan will cap at 10% of your discretionary income at the implementation time. If you still have any debt after making regular payments for 20 years, the rest of your debt will be forgiven if you go on to earn a graduate or professional degree that would be extended to 25 years.

Permanent Disability Release

Through the Department of Education (DoE), if a student who has a federal student loan has an incapacitating physical or mental disability and cannot contribute to what is considered significant gainful activities (a job), there may be some debt relief for a federal student loan.

First, the student must prove the disability with an authenticated doctor and have supporting documentation. Once permanent disability is determined, the student debt is canceled; however, the student cannot apply for any other educational loans. The only way a student can apply for loans and continue their education is to obtain a letter from a qualifying doctor that shows they can now engage in gainful activity (get a job.) About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Starting your own small business can be exciting for the budding entrepreneur, but it can also be scary and intimidating. You can have the best business idea in the world and execute poorly and end up killing your business before it ever has a chance. While many businesses fail within the first five years, the highest percentage within the first year doesn’t have to be the same for you and your business.

Growing up, you can likely look back to your successes and failures and realize that the common thread to whether you were successful or failed was preparation. Entrepreneurs can’t just come up with a business idea and jump in the deep end without being prepared to swim. Besides writing a great business plan and lining up financing, here are five keys to business success every entrepreneur needs to know.

Stand Out

Your business could be an innovative idea no one else has come up with; however, it doesn’t need to be the next new thing to be successful. Even if you decide to start a business that is in a saturated market, don’t let that discourage you if it is a business you have a passion for the business you want to start. The key, in this case, is to be unique within the market. Have a product or service in addition to the standards that no one else has and make it your focal point.

This is the time for you to be bold and creative. There are no limitations for the eager and forward-thinking entrepreneur, not afraid to stand out.

Network!

Networking has been in existence since the beginning of time and is nothing new to the business world. While larger businesses have staff dedicated to networking and partnerships, networking is up to you for the small business entrepreneur. You can start by joining every local small business group that makes sense for your business.

You can also use your social media to network with friends and family, and if you use hashtags, you can connect to others outside of your direct connections. Networking with all types of businesses can be rewarding. You can be a source if other business owners need the products and service your business offers, or they may send referral business from their customers that need what you offer through your business that they do not.

Watch the Competition

Every business should be acutely aware of their competition. This awareness is not reserved for direct competition but also indirect competitors. To be the most competitive in your market, you should begin by knowing your closest competitor almost as well as you know yourself. Research them, know their best practices and what works for them, and determine their weaknesses and opportunities for improvement.

Knowing the competition can also lead to other networking possibilities. Competition doesn’t have to equal contention. There can be opportunities to partner to increase revenue and your customer base.

Take Care of Your Business Credit

All credit, whether personal or business, is important. While your personal credit score can prevent you from making large purchases or cost you in high-interest rates or loan denials, if it is negative, your business credit is even more critical to keep positive. Businesses can have downturns, emergencies, or unforeseen circumstances that will require capital that may not be on hand. If you need a small business loan, it could be the difference between survival or total failure if your credit prevents financial assistance.

Always pay your accounts payables on time, early, or better yet, in full. Ensure that all business loans and credit cards are paid quickly and consider your business credit score one of the most important things for you to protect.

Pricing

Many small businesses make one crucial mistake they shouldn’t be making and incorrectly set their prices. There is a fine balance between overpricing and underpricing. Pricing is a lot easier than you might think. Some market and competitor pricing research and calculations on operations costs will ensure that your pricing will not only be competitive but keep your operations running.

Conclusion

Every entrepreneur has a lot to consider and plan for when starting your own business. Focusing on standing out, networking, knowing your competition, taking care of your business credit, and pricing will ensure your business not only succeeds but flourishes.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

When we dream of owning our own business, many of us likely daydream that we can afford to open and operate our business without any help or outside capital. The truth is, unless the business we are starting has low overhead or we have a huge chunk of savings to put towards opening our business, we will need to drum up capital to start and operate our business until the profits cover operations 100%.

There are several choices for financing your small business, but the choice that gains the most startup capital is investors and shareholders. These are those who put money into your business that will get back their investment through profits, but once their initial capital is paid back, they will continue to get a piece of the revenue. This share in the revenues means these shareholders also share the risks and therefore need to be kept informed. Here are six ways (besides profits) to keep your investors and shareholders content while you grow.

Communication is Key

Communication is key to any relationship you have in your life, whether business or personal. Your shareholders will want to see tangible results; however, while your business is building and growing, you will need strong communication with your investors. Keep them up-to-date on growth and changes in projections. Even if there are downturns in the business, don’t hide this from your investors and shareholders. They need to know the truth. This communication, specifically when it comes to downturns, could create more capital if investing more will spark growth and revenue.

The bottom line: Treat your investors and shareholders like anyone else who has a vested interest in you and communicate openly and often.

Actively Listen to Concerns

In the world of business investment and this day and age, it is rare to have “silent partners” who put money in your business and stay out of the operations. Most investors and shareholders will want a say in the object of their investment. As a business owner, you should take their input and ideas seriously and actively listen to their concerns and ideas. Active listening means you are heavily considering what is being said and integrating it into your business decision making process.

The bottom line: Though some ideas or desires may be unreasonable, most serious investors and shareholders are business savvy and have the experience that you, as a new business owner, have yet to know or experience. Remember, they have a stake in the business’s success, so every idea or suggestion they give you is with the business’s best interest at heart.

Manage Their Expectations

Before you communicate effectively along the way or actively listen to your investor and shareholder’s ideas, you must manage their expectations. If you have a well-written business plan, the business expectations should be handled for the most part. However, you should make sure the expectations are set at a range of high expectations to lower ones. While confidence will never be gained by presenting worst-case scenarios, setting their expectations in the middle on the lower end will give you space for some lesser desired results.

The bottom line: We all set expectations on every aspect of life in our personal and business lives. It is important that as a business owner, you set reasonable expectations for your investors and shareholders.

Show Strong Leadership

Investors and shareholders in a business are generally confident and strong leaders in their sphere of influence. When someone invests in your business, they aren’t just investing in operations and startup costs. They are investing in you. While profit projections and business potential may have heavily influenced their decision, seeing you as a strong leader and your potential is likely what had them yelling, “take my money!”

The bottom line: The investors and shareholders aren’t the only reason you should show strong leadership. Your staff and customers need to see you as a strong leader to get the most successful results for your business.

Set Service Goals

Before you even have your grand opening, you should discuss and set service level goals and expectations when your business starts. These service level goals and expectations may need to be adjusted. It would be best if you met with your investors and shareholders to discuss what these service levels should be, and an agreement should be drawn up and put under contract.

The bottom line: Service level agreements are standard practice in businesses that have investors and shareholders. The advantage to the shareholder is that they will know that you are striving to meet this goal and give them peace of mind. As an owner, the advantage to you is that an investor can’t move the line or push for higher service levels, which protects you and your staff from unreasonable goals.

Understand Your Investors

The best thing you can do for your investors and shareholders is to understand they are people just like you. They are not on some other plane because they have money to invest in your business or maybe more business savvy from experience. They are a person that is looking to make solid investments and who wants to see success and growth.

The bottom line is that investors and shareholders are not any different from you, so don’t treat them as though they are. Use the golden rule with some business modifications, treat and inform your investors like you want to be treated or informed.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Many millionaires that were not born into the money became a millionaire by turning their talent into a lucrative business. While your talent may not make you a millionaire, it can still be your business’s basis and be a fulfilling career you will love. Here are five steps you need to take to turn your talent into a business.

Question Your Level of Passion

Talent alone will not make your business a success. You have to have a deep passion for your business to not only survive those first crucial years of the business but to have a long and lucrative career.

If your passion is temporary, your business will be temporary and fail within the first year or two. Passion also drives your knowledge. If your business based on your talent requires education or certifications, if your passion is fleeting, you won’t complete the education required, and your business will fail.

Starting and operating a business is hard work and often takes up more hours than working for someone else, so your passion is essential to drive forward even when challenging. 

Push Through the Challenges

Most entrepreneurs who start a business of any kind will tell you that every stage of starting and operating a business is a challenge. If you have assessed your passion and know you want to use your talent to create a business, you will still need the stamina to work through the inevitable difficulties of running a business.

Some of the challenges that come with running a business can be overwhelming and even a little scary. You have to keep going despite these times. However, you don’t just have to endure the challenges. You can develop your business and come up with creative ideas to meet these challenges.

Develop Your Brand

Your talent and passion got the business started and helped drive you through the challenges, but your business’s success and longevity rely on customers. The best way to gain and retain customers is to develop your brand and market it.

To develop your brand know what makes you and your business unique or find the focal point of your business, which could be the talent or a specific product or service your business offers. Whatever makes your business stand out from others in the market is what you should build your brand around. That unique quality will be the strongest foundation for your business and your brand.

Also, having a strong brand will make it easier to develop marketing strategies. Go back and think about the millionaires you are aware of that built a business on their talent and identify their brand. Their brand is likely what you thought of first, not the millionaire.

Keep Focused

Keeping your focus on the overall operations of your business is a given. If you allow outside influences and challenges to distract you, your business may fail. Some of the distractions are unavoidable issues. It would be best if you gave some attention to resolve them. Other distractions can be people who don’t support you or your business.

Starting and operating your own business, especially one based on your talent, can draw a lot of negativity from your friends and family who don’t see the potential you do. Despite this negativity, keep your focus. This is not their business or life, it is yours, and it requires your entire attention and efforts.

Assess Your Business

It is important that you continually assess your business. Assessments are meant to test how your business is succeeding and where it is failing. You can make these assessments weekly, monthly, or yearly. If you have regular assessments, it lets you and your staff make changes to grow your business.

Sometimes your business will start strong and fizzle. This is not necessarily because your passion or desire for the business has faded. You are doing some of the same things now that you did initially, and these strategies no longer work.

Conclusion

Using your talent to start your own business is a great idea if you have a passion for owning and operating a business based on that talent. If you decide to use this talent to work for yourself instead of lending your talent to someone else’s business, you will surely succeed if you follow these steps.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Accounting and bookkeeping are a part of every business, no matter the size. Most larger businesses have entire departments dedicated to accounting, payroll, and the business’s financial workings. Small to medium businesses may or may not have staff dedicated to accounting and bookkeeping, but most small businesses resort to handling their accounting and bookkeeping through software. While most users will immediately jump on Intuit’s QuickBooks accounting software, known for its vast number of features and user-friendly design, other accounting and bookkeeping software are considered. Here is five accounting and bookkeeping software to consider for your business.

GnuCash

GnuCash is considered an extremely simple and user-friendly bookkeeping software. It is a great alternative to other bookkeeping and accounting software because it has efficient services and works with the vast majority of operating systems, including Mac and Windows PCs. Those who use it say its design is easy to use and integrated into your business no matter the size.

TurboCASH

TurboCASH is the perfect accounting tool to manage financial activities specifically for small and medium businesses. The greatest thing about TurboCASH is that it can handle more than one business at a time. So if you have multiple businesses or want your business and personal accounting and bookkeeping needs in one place, this software makes that possible. It is also an open-source accounting app that provides financial management services to financial businesses, and because of the open-sourcing, it has an incredible online community for support.

NCH Express Invoice

The NCH express invoice software is used to generate invoices, orders, quotes, and forms. Just as the name implies, this software is not as much an accounting and bookkeeping software as it is an invoice generating software. It still makes this list because users say it has great use in their business, and it is often used in concert with accounting and bookkeeping software that doesn’t have features that include invoicing.

Wave

Wave is an accounting application integrated to run home business bookkeeping and is mainly used to provide cloud-based services specifically to cater to accounting activities. This accounting application is used to manage the finances of small and medium businesses. It is also best known for having a user-friendly design with great service and features and excellent functions for small to medium businesses. Wave is also considered a highly-efficient software that is free; however, it will incur some costs if you want to include some of the upgraded services it offers for a nominal fee.

Money Manager Ex

Money Manager Ex is designed to manage accounts for small businesses and household finances efficiently and effectively. It is user-friendly, has excellent accounting features, and it is easy to use between devices. Like TurboCASH, Money Manager Ex is an open-source tool designed to deliver usable accounting services.

Accounting, bookkeeping, and invoicing software are not limited to one brand or service through some software that may be more recognized or widely used, such as Intuit’s QuickBooks. Some business needs are such that more expensive accounting and bookkeeping software would waste precious small business funds.

When deciding what software to use to take care of your business’s accounting and bookkeeping, you must do some research and get what you can afford to do the job you need to be done. When deciding what software to use, the other thing to consider is whether the software will still work if you meet your business plan growth projections. You can switch to an upgraded software to accommodate your business after growth. Sometimes, this change can cause issues, so you may want to consider an accounting and bookkeeping software your business can grow into rather than one that fits your current needs.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.