The bad news: 90% of all startups fail.
How can you make sure your business is at 10% successful?
Setting realistic goals and easy to build is one of the most important ways to make sure you do not fail.
Here, we tell you four key financial goals you need to set to grow your business. We will also talk about how to set it up to fit your overall resources and mission.
Of course, you want to make money. To do that, you need to bring more than you spend.
To ensure your profitability objectives match your business phase, see your revenue sources and tell how much you expect from each source.
Then, take a look at everything that contributes to your operating expenses: things like taxes, salaries, transportation, and rent. Then, set some realistic goals – and make sure your time frame also makes sense.
Here, working with a chartered accountant company can help you make sure you have the right number.
At this stage, even minor errors can cause serious problems. This is not the time to make your own random estimates – it’s time to rely on professional services.
2. Set the Right Cash Flow Flow
Here, you must determine the amount of money you need each month (or even weekly) to keep the door open.
Find out how you will cover your most basic costs, and remember that things can change quickly based on the seasons. Also consider account issues such as slowing payments, which could mean you have to make adjustments in the schedule for smooth cash flow.
We recommend that you set aside additional funds now, so this setback will not affect you in the future.
3. Make Sure Your Goals Build Each Other
You should see each goal as a stepping stone to reach the next one. Ask yourself how your goals relate to each other?
Breaking larger goals into smaller steps. It is not only an easier way to do business, it also allows you to evaluate the effectiveness of your strategy and make adjustments as necessary.
4. Purpose For Expansion
Of course, expansion is a big part of any business growth plan! But if you bite more than you can chew too early, your business can, and will likely, fail.
Evaluate if you want to grow fast, or more methodical. Then ask yourself the amount of outside funding you need to do it.
Can you donate one of your sales revenue to your expansion plan, or not?
If you go with outside funds, make sure you have thoroughly researched your options before defining a particular financial plan.
Your Small Business or Startup is Ready to Grow
With 28 million small businesses in America alone accounting for 54% of all sales in this country, you have to stand out from the crowd to keep it open.
Setting achievable, flexible, and methodical goals as early as possible in your business is the best way to ensure you are successful in your industry.