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Build a retirement plan - Complete Controller

If you are a small business owner, you possibly push a lot of focus on your efforts with the day-to-day tasks to keep the business going. You may not have thought about how you could save for retirement, even if it is fast approaching. More than two-thirds of small business owners do not plan for retirement, either for themselves or for their staff.

While some workers profit from a pension plan or a supplemental pension plan, this is not the case for many small business owners. It is you who has to plan your future and decide how you will finance your retirement. Here are some questions that will help you build a retirement plan even though the business is small. Check out America's Best Bookkeepers

How soon would you like to retire?

It is a good starting point for planning your outlook when it comes to your retirement. Even if you have only an ambiguous idea of ​​when you will retire, the important thing is to have a goal to achieve. This will help you think about the number of years you want to continue working, what you would like to do after retirement. It will also help you determine how much you can save by then.

There are many factors to consider, such as your physical and financial health, when determining the date that is best for you, your family, or anyone else with whom you plan to retire.

What lifestyle do you want to have in retirement?

It is important to consider the lifestyle you want to have in retirement when determining the amount you will need to take full advantage of it. Consider how often you would like to travel and ask yourself if you would like to volunteer or stay home. Retiring does not mean that you have to stop working completely. You could delegate specific responsibilities, work part-time, or act as a consultant while your successor becomes familiar with the business’s inner workings. Check out America's Best Bookkeepers

How will you finance your retirement?

The good news is that you can choose from many options to finance your retirement. Government programs such as the Pension Plans, the Old Age Security Pension Plan can provide you with basic income. And during your working years, you can take advantage of the tax benefits offered by the registered retirement savings plan and the tax-free savings account to save for retirement.

The individual pension plan and the retirement agreement are also options available to business owners who finance their retirement themselves.

If some owners count on their business’s sale to finance their retirement, this strategy is not without risks, the unknowns being numerous. An important question is whether someone will be ready to buy your business when you put it up for sale. It would help if you also had it appraised to find out its fair market value before you start looking for potential buyers.

Financing your retirement involves many important decisions. It would help if you spoke to your advisor about what to do to diversify your retirement income sources. Check out America's Best Bookkeepers

What future do you want for your business?

Every owner has to leave his business sooner or later. However, to be in good financial health at retirement and protect your assets, establishing a succession plan is important.

Here are some scenarios to consider:

  • Transfer or sell the business to a family member
  • Sell ​​to a partner or employee
  • Sell ​​to a third party

Even if you know who will take over your business, it will take time – perhaps a few years – to help them prepare to take over. Your successor may need to acquire specific skills and build relationships beforehand, in addition to having to become familiar with all aspects of the business.

It would help if you did not answer all these questions alone: ​​your advisor, accountant, and lawyer can help you with your planning, be it estate planning, tax-efficient investments, or retirement savings plans.

Knowing that you are ready for various situations can save you many worries and focus on your business. Even if retirement is still far away, having a plan means that you can cope with any eventuality. It is merely a good business strategy.

Check out America's Best Bookkeepers 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. Check out America's Best Bookkeepers
Beat the Competition - Complete Controller

Competition is present in every aspect of life that is especially true of the business world. Whether you are a small business or a large corporation, you have to concern yourself with your competitors and find ways to gain enough shares in the market in which you compete.

When it comes to the small business owner, how you view competition in the market and your nearest competitors can make a difference in your business plan, how you attract investors, and how you plan your marketing strategies. Here are seven areas of focus that will help you beat the competition. Check out America's Best Bookkeepers

Get the Whole Company Involved

Unlike corporate giants who can afford to have entire departments dedicated to dealing with competition in the market, the small business has to involve everyone in the business. Though you may have a staff member that exclusively handles marketing, most small businesses can’t afford to devote a staff member to deal with the competition. Every staff member, shareholder, and person involved directly in the business should share in developing strategies to get your share of the market.

It is easy to get buy-in from all involved in your small business because everyone will benefit financially if you can get more of the market share.

Meet and Exceed Customer Needs and Wants

Customers are the reason you are in business; therefore, their needs and desires should be your primary concern. Most companies that edge out the competition for more shares in the market will have the most satisfied customers. How do you know what your customer’s needs are? There are a few ways you can answer this question. Check out America's Best Bookkeepers

  • Ask your customers what they want and need directly
  • Partner with a survey company to get candid ratings and feedback
  • Pay attention to reviews
  • And old fashioned suggestion box
  • Regularly check the market trends
  • See what other successful businesses in the market are doing

Price Products and Services Perfectly

All businesses and owners at one time or another struggle with pricing. If you are too high, you could lose business. However, pricing too low could have you losing money even if sales are good. Unless you offer something so unique that nothing else like it exists, you should be consistently checking what the market trends on pricing are and target to within 10% of either side of the market average. If you go too low, you might be seen as a cheap product or service that will be of low quality. If you go too high, you will be excluding anyone who wants to use your product or service with fewer means than the wealthy customer.

You want your products or services to be priced to attract the most customers possible without skimping on quality and customer service.

Offer High-Quality Service and Products

Speaking of quality, it should always be a priority. When economic times are tough, many business owners make the tragic choice to cut corners and quality. If you are experiencing a business slump, lowering your quality will cost you more in the longer term. It would be best to find other areas to cut expenses or find a way to get the same quality materials for less. In some cases, if you have a long and successful relationship with vendors, they will work with you to provide you what you need at less cost until you get back in black. Check out America's Best Bookkeepers

Be Unique and Useful

In some markets, it is difficult to stand out but not impossible. The greatest way you can edge out your competition is to offer something within your shared market that they don’t offer. Find a niche product or service addition, or offer you product or service in a different way. You also want to make sure it will appeal to the widest amount of your target market. When you wrote your business plan at your business’s conception, you should have already identified your target market. Now you need to know how you can get the most shares of the target by offering useful and unique services and products.

Offer Exceptional Customer Service

You have probably heard the importance of great customer service millions of times. Though that might be an exaggeration, customer service focus is important enough that you should hear that many times. Even if you have no choice but to offer identical products and services to the customers in your market and have them identically priced, you can get your market shares to go in your favor by offering exceptional customer service. You and your team should strategize how to offer the best customer service, then turn it up to an eleven and make it exceptional.

Focus on Customer Retention

It’s one thing to get a customer in the door one time. That’s great. No customer is more or less important than another. However, your goal is not to get a lot of one-hit customers who never return. You and your staff should focus on retaining every customer who walks in the door or purchases products and services online. If your business is customer-focused, it will 100% succeed. After all, customers are the reason you went into business.

Check out America's Best Bookkeepers 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. Check out America's Best Bookkeepers
Financial Statements - Complete Controller

If you are a new small business owner or a small business owner looking to expand your business, you’ll need financing. Whether you choose to go with investors or seek loans from a financial institution is important that you have all the documents needed to increase your chances for financing. Besides a business plan, the most important documents you will need to help you get investors, keep investors, or obtain loans are financial statements. Check out America's Best Bookkeepers

There are four main statements that you will need. These four statements are the income statement, the balance sheet, the owner’s equity statement, and the cash flow statement. Every business owner must understand all four of these statements and the information they provide.

 

The Income Statement

The income statement helps investors and lenders the idea of your business’s performance over a specific timeframe. The income statement is also known as a profit and loss statement (P & L) or revenue and expense statement. It shows investors and lenders your business’s nonoperating and operating expenses and revenue, no matter what it is called.

 

A person will share the business’s income statement to help potential investors and lenders understand how your business performs and whether the investment would be a good one. Check out America's Best Bookkeepers

The Balance Sheet

The balance sheet is also known as a statement of net worth or a statement of financial position. The balance sheet is based upon the equation assets = equity + liability. This statement will show investors and lenders your business assets, liabilities, and equity. It also provides them with the overall position of your business over a specific timeframe. Generally, the balance sheet is used to help your accountant calculate financial ratios.

 

The balance sheet is perhaps the most commonly shared financial statement because it gives a great overview of its financial position. It also quickly gives investors and lenders an idea of whether financing your business is a safe and minimal risk.

 

The Cash Flow Statement

The cash flow statement is also known as a statement of cash flow or a statement of financial position changes. The cash flow statement is used by investors or lenders, and the business owner and accountants to see whether the business generates enough cash to meet obligations and operating expenses. In other words, it gives everyone an understanding as to how the business is managing its cash flow. Check out America's Best Bookkeepers

The cash flow statement is crucial for understanding the business’s ability to pay bills, accounts payable, and meet payroll and inventory demands. This statement should not be confused with the owner’s equity statement. This is the money used from profits to finance the business’s daily operations and is not an investment.

 

The Statement of Owner’s Equity

The statement of owner’s equity is also known as the statement of changes in equity or a statement of shareholder’s equity. This statement specifically shows profits and earnings that are being retained by the business and not distributed to shareholders. These earnings are generally used to reinvest in the company, pay off debts, or finance business growth.

 

This statement is generally used to give an idea of the financial stability and health of a business. It shows if a business can meet financial and operating needs. All done without requiring new contributions of capital from the owners or shareholders.

 

Conclusion

These very important financial statements will be used in multiple ways. They will be used when seeking investors or trying to obtain business loans. They are also used after a business is established to give shareholders, possible investors, and lenders an assessment of the business’s financial aspects. It is essential that these four financial statements be accurate and up kept. These four financial statements can be the difference between your company receiving funds and financing and going out of business.

Check out America's Best Bookkeepers 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. Check out America's Best Bookkeepers
Take a Vacation - Complete Controller

Everyone needs a vacation from time to time. But for the small business owner, the idea of leaving the business alone for any length of time could be stressful. However, it is recommended that you get away and recharge your batteries to keep strong for the good of the business. With careful planning, you can leave the business for a few days or even weeks and actually enjoy yourself. Here is a short guide to help you make plans to take a peaceful vacation while preventing your business from falling apart in your absence.Check out America's Best Bookkeepers

Sorry, We’re Closed

If your business has no other employees to run it while you’re away, you can close for the duration of your vacation. Does that sound too easy? There are some additional steps you can take to ensure you still have customers to come back to when you return.

  • Inform regular customers of your absence via email, text, or call. This personal touch will make your regular customers feel cared for and ensure they will be there when you return.
  • Set your business email to an automatic reply that you are away and will reply upon return.
  • If you have a storefront, hang a closed sign in the window or on the door.

Some things to remember for security, don’t be too specific on the times you will be gone, especially with the closed sign. Also, if you have a walk-up business, make sure you secure any valuables at home. Check out America's Best Bookkeepers

Ask Someone to Business-Sit

If you don’t have employees, if you have a trusted family member or friend that can take care of business while you’re gone, this will ensure you keep the business going while getting that much-needed R & R. Having a friend or family member that is not regularly involved with your business run it in your absence is only suggested if your business is uncomplicated or will suffer in your absence.

Much like when you have someone house-sit, you can leave detailed instructions on how to handle the business. Providing written instructions along with providing checklists will ensure everything will run smoothly while you’re away. Though it is recommended that you go off the grid to truly benefit from the break if leaving your business with a friend or family member you may want to have your phone on for emergencies.

Let an Employee Take Over

Ideally, if you have any employees, they would be able to run the business in your absence. If you have a trusted employee that can take care of business while you enjoy your vacation, leave them to it.  Your absence is an opportunity for your employees to show what they can do without you around. If it goes well, you may take more time off or even promote an employee to manage your business and open up time to pursue other ambitions. Check out America's Best Bookkeepers

Make it a Mini-Vacation

Sometimes all you need is a small amount of time away from the business to recharge your batteries. Instead of taking a week or two-week vacation or traveling far, limit the time and distance. Sometimes a long weekend, day-trip, or staycation at home are all you need to get some much needed time away. Keeping it close or short would minimize the impact on your business operations.

Conclusion

Vacations are a must, especially for small business owners, as they are typically working more hours a day than anyone. Many will not take time off for fear that the business will suffer in their absence. This short guide shows that you can take a vacation and keep your business safe while relaxing and destressing. Just be sure to take lots of pics to share!

Check out America's Best Bookkeepers 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. Check out America's Best Bookkeepers
Salons and Day Spas - Complete Controller

Every startup has to face a difficult battle to survive. It is estimated that as much as 80% of all small startups collapse in 18 months.

There are many reasons why they do not succeed, such as financing problems, external market conditions (like an unexpected increase in the business cost or new competition), poor planning, tax-related issues, and mismanagement. Check out America's Best Bookkeepers

When it comes to new beauty salons and day spas, some of the most common reasons they fail include the following:

  • Insufficient cash reserves. It is essential to have cash reserves for at least six months to support you until your business starts generating money.
  • Not being able to clearly understand and define your market, your clients, and the possible services you can provide.
  • You are not pricing your services and products correctly. For instance, you can either provide the best services or the cheapest; trying to do both is bound to lead to failure.
  • You are not able to adequately anticipate cash flow. Immediate payment is required from new businesses by certain suppliers, which can cause your cash reserves to deplete rapidly. Furthermore, having to wait for months to reimburse things sold on credit can lead to you getting cash-strapped severely. Check out America's Best Bookkeepers
  • Not being able to react to any change in the market, such as technology and competition, can be easy not to notice and be aware of any changes when you get busy because your work is demanding. However, only catering to a trendy, young crowd that is aging is the easiest way to land your business in trouble.
  • Thinking you will be able to do everything on your own. This is maybe the most significant challenge faced by entrepreneurs. It is essential to realize that you cannot handle everything yourself and rely on professionally qualified people and much better at handling the task or responsibility. Considering how, similar to the owner of any business, salon owners should spend most of their time directly dealing with customers. Instead of trying to manage everything from the services to financial responsibilities, outsource your bookkeeping and give yourself a break. No matter what kind of salon you have, a bookkeeper can handle all your bookkeeping work, saloon book, and back-office processes to support your business. Check out America's Best Bookkeepers

So what should an inexperienced salon owner do? Firstly, they should employ the professional help of bookkeepers, attorneys, and business managers to properly manage and operate their business. Because regardless of how passionate, knowledgeable, and intelligent a person may be, it is impossible to be an expert in every area and field. Even though at the start paying the fees for getting things done professionally may feel like a burden, it will prove to be extremely beneficial sooner or later because getting help will let you pay more attention to the things at which you excel.

It would also be a good idea to learn and take courses concerning business management because if you know the basics of accounting, marketing, and finance, you can make more fruitful decisions down the line. Understanding business better rather than only having industry-specific knowledge can be extremely beneficial. It is always better to have a general education regarding business principles, so your success is planned and not only a matter of luck.

One huge benefit a potential small business owner has is that they can depend on all experienced business owners’ expertise and insight. Without a doubt, any individual who has launched their own business as a small startup can give you a wide range of entrepreneurship advice. What’s more, other beauty salons and day spa owners can provide you with a treasure chest of wisdom. So it would be a good idea to join an association in the industry and create networks at its regional meetings or conventions. You will eventually realize that even the owners who are incredibly successful now were in your position at once time and used to have similar concerns as you do now.

Check out America's Best Bookkeepers 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. Check out America's Best Bookkeepers

Effective budgeting refers to the best allocation of resources to run the functions of an office.  Bookkeeping refers to the record-keeping of all transactions which take place in the workplace. The two can be related in a simultaneous order. Budgeting requires the allocation of resources, while bookkeeping requires the record-keeping of the transactions which take place from the allocation of funds-from scratch to the finishing line. Both terms belong to the genre of accounting, where auditing comes under the perspective of bookkeeping. It helps in carrying out effective budgeting tasks and aids in identifying the weaknesses, strengths, limitations, and savings of a business. Following are certain wonders of effective budgeting: Check out America's Best Bookkeepers

  • Utmost Expenses of a Business can be Planned through Effective Budgeting:

As stated by James LeMay-the, director of Daigle and Associates with an accounting firm in Boston,” This helps you to be honest about what is coming so you can plan for it beforehand.” Budgeting plays a significant role while planning the transactions, which are most likely going to take place in an enterprise to plan about the expenses of the company in a systematic manner. However, the technique is beneficial as it allows the allotment of resources while keeping the budget in mind as well as the estimated expenses. Check out America's Best Bookkeepers

  • Enlists Accurate Documentation of the Deposits made in a Business:

The technique can be applied through accounting software, which can be easily downloaded through online accounting websites present such as GnuCash or QuickBooks. This software help accountants in recording all transactions easily. Keep in mind that wrong entries can lead to incorrect results, ultimately affecting the whole scenario of accounts in a business. This allows the keeping of accurate records of a business to avoid any inaccuracy in budgeting performed.

  • Ensures the Welfare of an Office:

Optimal budgeting and proper allocation of all resources and funds available in a particular business ensure the well-being of a workplace so that management can say that their resources are being used for the proper welfare of their own business. Moreover, budgeting helps in reviewing a business’s profits, where it can be explored through the resources left out of the ones allotted for the running of a business. These resources usually come from the profits earned by a business association. Check out America's Best Bookkeepers

  • Helps in Increasing Efficiency of Employees:

A certain amount of budget available can be appointed for the employees with high productivity.  This drives them to accomplish a company’s targets on time. A highly qualified and experienced team of accountants must be appointed to perform budgeting tasks to enhance the effective working of a business corporation. Its employees must be treated with great care in terms of high bonuses for those that have proven their work.

Final Note

With the advancement of technology since the industrial revolution, people have moved towards the making of tools to make their lives easier in all aspects. The field of Accounting & Finance has also progressed to make businesses run efficiently. Budgeting and bookkeeping are two important terminologies that can be used to maintain the order of balance in a company’s accounting department. The two terms are interrelated and useful in the cloud of accounting & finance.  Budgeting proves to be a wonderful aid in the promotion of smooth and successful business.

Check out America's Best Bookkeepers 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. Check out America's Best Bookkeepers

CLOUD ACCOUNTING TOOL: Cloud accounting is the same as traditional accounting and bookkeeping procedures done on an accounting software. The cloud accounting tool is hosted on remote servers, similar to the SaaS (Software as a Service) business model. Data is sent to the server into a ‘cloud’, where it is processed and sent back to the user. All application functions are done off-site, into the cloud, not on the desktop. The accounting functions are done online and not on the desktop software. Internet or other network is used for the process. The users access the cloud accounting tool through a cloud application service provider. The software has not been installed on a computer. It can be accessed from any place in the world, provided the cloud application service provider is present.

Smart management and organization from everywhere:

Cloud accounting tools have got multi-user access. Having access to accounting and bookkeeping data anywhere and anytime in the world. You can spend time in other activities related to business operations or spend your quality time with family. You can go online to access cloud accounting software while sitting at home and keep yourself updated with the accounting and bookkeeping functions in your business. An up to date view of the financial status of the business to make the right decisions at the right time. All team members can access required information whenever and wherever needed. A better relationship is built with the accountant. You can access accounting data online, and then give a quality time to your accountant for discussion related to business bookkeeping.

1. Relationship with vendors improved:

For small business owners, vendors are important. They play a vital role in the success of small business. Small business owner wants to have a pleasant relationship with vendors and suppliers. Relationships with the supplier is often disturbed by late payments. A Cloud-accounting tool prevents this situation. A business owner can easily search the status of the bill and can advise for quick payments.

2. ECO-Friendly system:

Go paperless in accounting and bookkeeping. This step is eco-friendly too. Paperwork takes a lot of time for the accountant and business owners. Small business owners do need time to interpret accounting information. Accounting software makes it easy to interpret accounting information. Cloud accounting tool reduces upfront business costs. You do not face regular maintenance and upgrading the system.

 

 

A Few Cloud Accounting Tools and their benefits

Here are five cloud-based accounting tools with reasonable price for small business owners.

  1. FreshBooks

You can access it from the desktop computer and mobile phones. It makes easy to track expenses, make online payments, generating customized invoices, generating reminders of late payments, purchase history with time-tracking, client records, and management of different projects with different rates.

 

  1. QuickBooks Online

 QuickBooks is used to 

  • Generate invoices with the logo of your company and with all details required by the customers.
  • Processing payrolls according to HR policies
  • Managing all business transactions, including bills from suppliers and vendors
  • Inventory management
  • Tracking expenses.

 

  1. Kashoo:
  • Creating professional invoices
  • Categorization of income and costs
  • Connectivity with online credit cards and bank accounts.
  • Online Sharing of data with accountant

3.    Outright:

Outright is an online cloud accounting tool for small business owner and is used for tracking expenses, profit, sales, and customers. Bank accounts and others like PayPal, eBay, FreshBooks and web stores can be connected to outright and data can be easily exported from one to another app.

4.    Xero:

  • A dashboard with bank balances, expenses, and invoices.
  • Tracking cash flow in real time.
  • Data can be shared and accessible to accountant and others
  • Scheduling of Payments and returns

Apple, Blackberry, and Android applications are available. Many add-ons like CRM, invoicing, inventory management packages are also available on demand.

Conclusion:

Cloud Accounting tools make bookkeeping and accounting operations easy and less time-consuming. A Cloud accounting tool provides small business owners a great feasibility in accounting and bookkeeping at reasonable costs.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing services 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 US based accounting professionals are certified QuickBooks™️ ProAdvisor’s providing bookkeeping, record storage, performance reporting and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay services. 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.

Start up Business Team Meeting Ideas Concept

One of the primary reasons behind why start-up businesses run into difficulties is that they keep running into the issue of not having any market for the product or service being provided. Here are some common issues that new businesses face:

  • There isn’t a sufficiently convincing incentive or occasion that compels the customer to focus on buying or purchasing the product or service. Experienced sales reps often reveal that to get a request in the present intense conditions, you need to discover buyers that have a dire need to purchase the particular product or are greatly enthusiastic about it. You additionally hear individuals discussing whether an item is a Vitamin (pleasant to have), or an Aspirin (must have). This is a key to startup success and survival.

  • The market timing isn’t right. You could be ahead of your market by a couple of years and the stakeholders will not be prepared for your specific arrangement at this stage. For instance, when EqualLogic first propelled their product iSCSI, it was still early. It required the landing of VMWare which required a capacity zone system to do VMotion to truly jump start their market. Luckily, they had the financing to last through the early years.

 

  • The market share of business being small and having finance which is essentially not too large. Strategizing to capture significant market share is also a key start-up task for an entrepreneur.

Business Model Failure

In the wake of numerous organizations just starting their business operations, it can be observed that the most significant and widely recognized reasons that obstruct startup success are the excessively idealistic approach about how simple it is to get to new clients. They accept that since they will assemble a fascinating site, product, or service, the clients will beat a way to their doors. That may be true with the initial set of clients, yet from that point onward, it quickly turns into a costly errand to draw in and win clients. When compared to the cost of acquiring the client (CAC), it was ultimately higher than the lifetime estimation of that client (LTV). Bookkeeping these two elements require careful financing and intense management strategies.

The perception that you must have regarding the capacity to get your clients for less cash than they will produce in the value of the lifetime of your business with them is stunningly self-evident. However, regardless of that, it can be observed that by far most of the entrepreneurs neglect to give careful consideration to making sense of a reasonable cost of acquiring customers. These assessments are primary start-up tasks which should be done by an entrepreneur.

The Essence of a Business Model

A straightforward approach for startup businesses is to concentrate more on what makes a difference in your business model.  It is about giving a thought to the following questions:

  • Can you find a versatile approach to secure clients?
  • Can you capitalize those clients at an altogether higher amount than your cost of acquisition?

Contemplating things in such straightforward terms can be extremely useful. There are two “standards” around the business model which are less rigid. These are laid out as follows:

  • The CAC/LTV

The principle is relatively straightforward: CAC must be not as much as LTV

  • CAC = Cost of Acquiring a Customer
  • LTV = Lifetime Value of a Customer

To calculate CAC, you should take the whole cost of your sales and marketing capacities (counting pay rates, marketing programs, lead generation, travel, and so on) and divide it by the number of clients that you may close during that time frame. So for instance, if your aggregate sales and marketing expenditure in Quarter 1 was $1m and you close 1000 clients, at that point your average cost to get a client (CAC) is $1,000.

To calculate LTV, you will need to take a look at the gross margin related to the client (net of all establishment, support, and operational costs) over their lifetime. For organizations with one time charges, this is quite straightforward. For organizations that have repeating membership income, it is calculated by taking the month to month repeating income and dividing that by the month to month churn rate. In bookkeeping for these numbers, accountants need to develop a system that focuses on CAC, and LTV returns.

Since most organizations have a progression of different capacities, for example, G&A and Product Development that are extra costs in addition to the sales and marketing, and conveying the item. This is where bookkeeping can play a strategic role for startup businesses.

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About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services 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 and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

Weather Financial Stressors - Complete Controller

It may sometimes be difficult to transition from the everyday stress of running a business under strain to meeting weekly or monthly payrolls and paying banks and suppliers. While this may be challenging, it is certainly not impossible, particularly when SMEs strategize their efforts.

Listed below are the most common issues facing SMEs and suggestions on how to handle them. Check out America's Best Bookkeepers

Inability to either recognize competitive advantage or adjust the required strategy

It is always good practice to review your methodology consistently and account for changing economic situations and client requests. Furthermore, it is also crucial that competitive advantage is recognized, and decisions are made as to whether this should be resource-based or positioning-based? Until this is accounted for, the required strategy cannot be adjusted accordingly. This is an area where bookkeeping can reveal where the competitive advantage of a business lies.

Coming up short on liquidity

Liquidity is a constant danger to any SME, so it is imperative to never risk more than you can bear to lose. Adequate capital management is a consistent test for SMEs. Additionally, maintaining ideal or effective levels of liquidity is crucial to efficient bookkeeping.

Recognizing exceedingly talented professionals

Enlisting ideal staff is never a simple task for SMEs; in fact, numerous SMEs simply do not put enough effort into this aspect of the business. Walt Disney expressed, “You can dream, make, plan and fabricate the most awesome place on the planet. But, it requires individuals to make the fantasy a reality.” Similarly, the aspect of bookkeeping is often taken lightly by SMEs. It is of paramount importance that individuals charged with the preparation of financial statements and financial management be exceedingly capable. Otherwise, it is likely for SMEs to lose more than they gain. Check out America's Best Bookkeepers

Failure to systemize bookkeeping

Systemizing bookkeeping is essential to keeping the business lean and proficient and maintaining a strategic superiority amongst competitors. This process provides great insight into financial health, which leads to better decision-making.

Absence of business/brand awareness

Numerous SMEs struggle to get their message out there. SMEs are like hidden treasures if not made accessible to potential customers.

Not being a step ahead of the competitors

Many SMEs lack the awareness of how important proper instruction, preparing, training, and coaching are to stay ahead of the competition. Additionally, organizations must continue to reevaluate their procedures to stay current. As the saying goes, “Today’s news is tomorrow’s waste.”   Check out America's Best Bookkeepers

Getting the pricing model inaccurate

Pricing errors are a common issue with numerous SMEs as many tend to underestimate their own worth. This is the space where good bookkeepers and consultants are needed to provide expert insight and support.

Thoughts are simple, and implementation is hard. SMEs must inquire as to whether they are building a business for value or simply searching for an occupation, or worse, a hobby.

SMEs and privately-owned companies have many opportunities to respond rapidly and offer individualized services. Many organizations tend to be moderate and bulky, winding up rigidly systemized and set in their ways. This contributes to expansive corporations purchasing smaller organizations to develop and remain in front of the market. Jack Welch, the ex-CEO of General Electric, was quick to depict his huge company as several little independent groups. He was a major supporter of smaller, adaptable, and individualized businesses.

It is important to take time to audit your methodology to account for changing economic situations. Also, it is crucial to face adversity head-on, all while grasping at the open opportunities that come in your direction. Doing this will set up your SME for further development and eventual success.

Check out America's Best Bookkeepers 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. Check out America's Best Bookkeepers

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Reevaluate Your Business – Even in the start-up

It is not mandatory to have a large, innovative organization to reinvent your business. Truth be told, the smaller and leaner the business is, the quicker it is to change gears and adapt to the rapidly changing environment. There is greater flexibility in the start-up for a business to respond to paradigm changes in consumer demands.

Entrepreneurs need to consider the following areas: Do clients still need and purchase a similar sort of items or services you offer? Have industries and practices changed since the start-up of business? Does the entrepreneur have sufficient awareness of changes in business practices? If not, what changes should be done to make the business competitive?

Is there a need to launch new products and services? Try not to speculate what clients need and will pay for it. Break down your current sales and interact with real clients and prospects. What do they require? What would you be able to give? What’s an ideal approach to convey answers for them? What will acquire the most profit? Is there a specific specialty that the business can specialize in?

Provided that this is true, entrepreneurs need to consider how customers can be targeted and what other products can be launched in the target market.

Sales over the Internet

Is the entrepreneur offering their products and services on the web? If not, then what are the reasons for not doing so? If the sales are declining and there are no offers available on the web or capturing leads online, it’s an ideal opportunity to capitalize on this opportunity. Notwithstanding when individuals purchase face to face or by individual connections, they are probably going to explore the items, organization or consultant online before settling on a choice on what to purchase and from whom to get it. If you have a business, a website is a must. The kind of website and what ought to be on it relies upon what the entrepreneur has to offer. However, an efficient bookkeeping method also needs to be in place to account for online sales. This aspect has to be evaluated as part of the many start-up tasks.

Get Involved in Social Media

Do you have an online networking presence? Online networking may not be everyone’s cup of tea, but the Pew Internet Social Media Update in 2016 found that 68% of all U.S. adults (i.e., Internet clients and non-Internet clients) are Facebook clients. While 28% of these clients utilize Instagram, 26% utilize Pinterest, 25% utilize LinkedIn, and 21% utilize Twitter.

Discover which of the web-based social networking locales pulls in the type of clients you need to reach and, after that, it is important to get active in those channels. Post remarks, answer questions, begin discourses identified with your products and industry. If you don’t have time for all of this, consider having a trusted staff to handle the web-based social networking assignments. Consider publicizing via web-based networking media destinations, as well. The social media activities need to be launched from day one of the businesses start-up.

Contact Former Customers

Try not to accept that a previous client who did not purchase from you in the business start-up will never purchase from you again. Clients’ needs and conditions change, just like that of an entrepreneur. The mega corporation that didn’t renew your agreement a few years back on account of changing business needs may have altered their course of action and could be a decent prospect now. The client who might have considered a lower-priced competitor might be disappointed with the quality of service and be responsive to a call from you today. Bookkeeping previous records of the former customer can reveal how greater gains can be made in the present.

Contact Competitors of Present or Former Customers

On the off chance that an organization needs what you offer, there’s a decent shot that their rivals do as well. Industry groups that you belong to such as trade shows, seminars and friends in the industry would all be able to assist you to distinguish likely prospects. On the off chance that the target market approached in the start-up doesn’t require your products or services, inquire as to what their specific expectations and requirements are. To account for this, non-financial bookkeeping is also important to be conducted.

Sell Additional Products and Services to Existing Customers

Regularly, the simplest approach to acquiring new business is to sell more to your current clients. You might have the capacity to sell additional products to a similar contract or sell a similar product to an alternate division of the organization. Or, there is also the possibility to sell related items and services to the client. Keep your eyes and ears open for new opportunities.  It needs to be ensured that clients know about the dynamism of the business right from its start-up.

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About Complete Controller® – America’s Bookkeeping Experts
 Complete Controller is the Nation’s Leader in virtual accounting, providing services 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 and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.