Whether you started your business from the ground up or inherited it from a prior owner, it is important to ask yourself if you really KNOW your business? You may feel like the answer is obvious – but truly knowing your business goes beyond simply knowing what you do and the yearly revenue you earn. What else do you need to know?
This is part two of the TOP 10 quantitative aspects of your business you need to know if you want to GROW!
6. Your insurance
Essentially, insurance can be defined as the money you are paying someone else in case something bad happens in your business. Some basic types of insurance include slip and trip liability insurance, worker’s compensation insurance, life insurance, long-term care insurance, and cyber insurance. Investing in the right types of insurance will cost you extra now, but it can save you thousands in the long-run.
7. Your Goals
Where do you see yourself and your business in one year? Five years? 10 years?
Benjamin Franklin said it best: “A failure to plan is a plan to fail.”
I suggest working with a business strategist or CPA that specializes in working with small business owners to devise a plan for your business. In addition to the factors already discussed, some questions you may ask are: What do I need to do to make X amount of sales to net X amount? How should I organize my business to ensure I don’t work 60+ hours a week? Be sure to emphasize aspects of your life and business that are important to YOU.
8. Your marketing strategies
What methods do you use to market your business? How much does each method cost? What is the effectiveness of each method? Do you have the resources to experiment with new and upcoming trends? Is marketing too much for someone on your team to handle? Should you outsource your marketing? These are all key questions you must know the answers to.
9. Your cost of goods sold
No matter your industry, you need to know what it costs to produce your goods to appropriately price them. Plain and simple, if this is done incorrectly, or not at all, you WILL lose money and your business WILL fail.
10. Your retirement
When do you want to retire? When do you think you will actually get to retire? When you do retire where will your money come from?
Social security is not enough to rely on these days, and you definitely shouldn’t expect your children to fully support you. Do you have a 401k? IRA? Stock investments?
Did you know that the money you put aside today can be taken as a tax deduction? Imagine your money growing tax free until it’s time for you to take it out. These options are available to you, but you must seek out a financial planner to guide you to the right course to take. If you make the right choices as a business owner now, you will be able to set yourself up for a financially secure future.
So what now?
We suggest scheduling your complimentary appointment with David Alfano, CPA to learn what services your business can benefit from. Email firstname.lastname@example.org or call 203-698-7700 to schedule your appointment today!