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Ch 5. of the Comprehensive Guide for Growing Your Business: Review, Review, Review
Review your financial reports for the year before and make sure that your bookkeeping is organized for the year ahead.
Financial Reports and Statements come into play when you least expect it. It’s important to stay on top of your reports because investors, creditors, and banks look at these to analyze a company’s performance and overall standing. It’s a good rule of thumb to review your statements to ensure accuracy and thoroughness.
Stay organized! We’re still early on in the year and starting off on the right foot can make this your easiest year of bookkeeping yet. Here are some tips we’d thought might help:
- Get a separate bank and credit card accounts for personal and business.
- Dedicate a small amount of your time per week to organize your finances.
- Ditch the paper & declutter- the IRS accepts electronic copies of your receipts.
- Store it in the cloud - you can’t do a quick word search through your physical folder of files!
- Sign up for Quickbooks Online to keep your finances organized and ready for taxes.
- Don’t know what you’re doing? Simply, ask for help from a professional.
I’m Behind on Bookkeeping
Is, “I can’t even right now,” your first reaction when you hear, “bookkeeping?” It’s a heavy chore, we get it. If you’re at a loss of where to even start when you need a Profit & Loss Statement, hire a local bookkeeper for a few hundred dollars per month. They can help keep you organized and prepared for taxes. You can also outsource your bookkeeping to a company like Bench.co who provide bookkeeping experts you can depend on.
Staying on top of paperwork is one of the many keys to success when owning your own business. Double checking, or even triple checking your numbers and financial reports safeguards you and your business from future mishaps when those reports have to come into play again. If you have any suggestions or ideas on what works for you when dealing with reports and statements - we’d love to hear them! Feel free to drop us a line in the Contacts section.
Bigger Business Book Club
If you're a small business owner who is looking to become a bigger business owner, you must read our first two books on the list...
The E-Myth: Why Most Small Businesses Don't Work and What to Do About It
by Michael E. Gerber
Being an entrepreneur requires a growth mindset that is constantly open to learning and improving yourself. You have to be willing to make changes and put in the heavy lifting in order to grow and experience freedom. These two books are the ultimate guides for taking the necessary steps to put your business on autopilot. We're not being paid as an affiliate to promote these books, they've just really changed our lives.
4-Hour Work Week
The book seems a little crazy at first. Especially if you're a small business owner who is a solopreneur and working 24/7. It seems a little outlandish to reduce your work day by 20 hours, however, we highly recommend that you give it a chance because Tim Ferriss does a great job of putting your business operations into perspective. Ferriss points out how many hundreds of hours per month are wasted on mindless tasks that can be automated or outsourced in order to free up your time for growth and more sales. Ferriss gives a ton of examples of, "high-tech shortcuts, for living like a diplomat or millionaire without being either." Ferriss lays out step-by-step hacks for things like - how to tackle email more efficiently, how to negotiate better with clients, and most importantly, how to go from making $40,000 per year working 80 hours per week, to $40,000 per MONTH working only 4 hours per week. Read this book and your mind will go into growth hyperdrive. If you're on the go, you can listen to the audio book or you can catch the Tim Ferriss Show podcast for a serious dose of inspiration from truly revolutionary entrepreneurs, artists and scientists. We're addicted to it.
The E-Myth
This book is the holy grail for small business owners. This is the book that you will be giving to all of your business owner friends after you read it. Michael E. Gerber is considered to be the World's #1 Small Business Guru for a reason. He makes a convincing argument that most people are working too hard "in" their business and not "on" it. The problem that most small business owners face is that they get into daily habits that are difficult to change and they are afraid of relinquishing control to other people. A lot of small business owners are stuck as a "One Man Band" and are so busy walking dogs, making pies, tutoring kids or teaching lessons, that they have no time left over to really work on the actual business. Gerber breaks down the mental barriers that we put up by reminding us that we can't do it all and we can't keep going in the vicious cycle of only making money when we're physically working. If you are never able to confidently step away from your business for the day, the weekend, or for a vacation - you will burn out and you will feel stuck. Gerber points out that the most successful service companies in the world have been built by putting the systems and processes in place for people to consistently follow in order to maintain quality control and order. You are not the only person who can walk dogs, make pies, or tutor kids. You can build a bigger, better business by releasing control and putting the branding, systems and guidelines in place so that you can trust your team and free yourself up for more growth and freedom. This book tells you how and it speaks volumes to anyone who is starting a business or looking to take their business to the next level. We give it an A+++.
Ch. 3 of the Comprehensive Guide for Growing Your Business: Guidelines
Why Guidelines?
Guidelines are crucial to maintaining consistency and excellence in your business. McDonald’s and every other franchise of the world have detailed guidelines and protocols in place to ensure that services are performed the same way, every time. Employee Handbooks and Business Guidelines (even if it’s just for yourself) are important to make sure that your business can run without you and that quality is guaranteed every time.
Guidelines are there to set the company’s tone that you see perfect for your business. It explains the core mission/standards of your business and covers all aspects of your business you can dream of, going beyond the protocols. From team member benefits, team member work behavior, or the specific conditions of what constitutes an absence, tardy, write-up, citation, or termination. It’s a great resource/reference to have for you and your team in uncertain situations.
Read the E-Myth and the 4-Hour Work Week to change your life as a business owner.
Gerber offers insightful strategies and tactics to conquer having your dream business. He walks you through the cycle of a business, from, “entrepreneurial infancy, through adolescent growing pains, to the mature entrepreneurial perspective” (Amazon). The E-Myth is considered mandatory reading from us for anyone looking to start a small business.
4-Hour Work Week
From an entrepreneur himself, Timothy Ferriss shares a common problem all entrepreneur encounters. The work overload and no life balance what so ever. He introduces a new acronym, (also the names of the chapters): DEAL (Definition, Elimination, Automation, and Liberation). It’s so easy to get caught up on the hamster wheel and before you know it, running a business means working day in and out endlessly. Read the 4-hour workweek and seek the balance you want in your live/work life.
It’s a Bonsai Tree Thing
If you already have your guidelines in place, be sure to revisit them and update/edit any changes once in awhile. Owning a business is a constant learning process and as you grow, your guidelines should become more detailed and fine-tuned as your business changes.
Ch1. So You Want to Start Your Own Business
Well that’s great! You’re about to embark on a very exciting journey of self-exploration, discovery, and knocking down the doors to countless opportunities for your future. There are many, many aspects to consider when starting your own business. Skipping a minor step can send you down a windy, bumpy road to getting your business where you dreamt it to be. Fortunately, there are plentiful resources at our fingertips that can smoothen the journey. We’ve assembled a small starting checklist and some insightful info for the first chapter of your story.
Make sure you have your DBA and a Business Tax Certificate
First off. DB-What? It’s an abbreviation for “Doing Business As” and sometimes it’s needed to conduct business under another name. Many entrepreneurs overlook the legalities of registering a DBA and later on, encounter fines, penalties, and lawsuits. Know what your state requires for a DBA and don’t take any shortcuts. A DBA can help you open up business bank accounts and can add asset to your existing business. Legalzoom.com can get you started with your DBA for a small cost.
Obtain a Business Tax Certificate (also called Business License) in the city you are doing business in. Any person who conducts business, trade, profession, or enterprise within a specific city will need a tax certificate – and it doesn’t matter if your physical business address is in or outside the city. Your Business License is good for one year from the date of application. Check with your City Hall for fees and specific requirements.
What about an LLC or Inc?
There’s a lot of confusion between the differences of establishing an LLC or Inc., but it’s good to know the roles of each so you can choose the appropriate setup for your business. An LLC is a limited liability company – it’s a marriage of two business structures of providing the limited liability of a corporation and the tax efficiencies and operational adjustability of a partnership or sole proprietorship. The pros of establishing an LLC gives the business owner choices on how they will be taxed, less administrative paperwork, and record keeping (as opposed to a corporation), are protected from some or all liability for acts and debts of the LLC depending on state laws, and can even be set up with just one natural person involved (wikipedia).
In contrast, an Inc., is an abbreviation for Incorporated and it declares the corporation as a separate entity from its owner(s); nonetheless, it can raise its own funds, own property, and conduct business. Many find this an appropriate business option because it protects the owner’s personal assets against the company’s liabilities. Because this option is more ideal for larger establishments and is legally complex, it is not always ideal for new and small businesses.
1-800 Call-Saul
Okay, maybe not Saul from Breaking Bad, but it is very well advised to speak to a small business attorney just to cover all ends you may overlook. It’s highly recommended that you have a Terms and Conditions agreement with your clients and if you have contractors working with you, have an Independent Contractor Agreement ready to go. Depending on the nature of your business, a small business attorney will assist you in making sure that you are legally protected. You can also visit LegalZoom or RocketLawyer for quick and easy standard agreements.