When starting out in business it’s critical to build a solid foundation, first by establishing and secondly maintaining a set of systems specific to your business. There’s no magic pill for this or strict set of rules. It’s up to each person to put together the systems forming a solid foundation. Hopefully its better than your competitors, giving you the competitive edge. Don’t know where to start and want some help? Having a book-keeper with loads of experience is a great resource to turn too.
To build and test processes its helpful to accept it can involve more time than a standard week. Time spent during the formation stage can also equate to drawing less than you potentially should. Every business needs capital to work and during this stage you don’t yet have an established basis. Sure there are books that say pay yourself first, too working to a strict schedule to separate business time from personal. In our opinion however you should only introduce things like this down the track, when you know your business is reasonably secure. We can’t stress enough how important it is to undertake the critical ground work forming a solid foundation.
Ensuring your business has a solid foundation isn’t something that just happens. It requires a process of testing and tweaking over time. It may take 2 or 3 years or more to see this through to a point where you can somewhat comfortably rely on your financial position being reasonably consistent throughout each year. Once things are in place and you’ve established a solid foundation, then you can back off a bit. Realise though that if you’re not ready to go all out in the beginning, then being in business potentially isn’t for you.
We certainly wouldn’t suggest you go into business with a blasé approach. Likewise if its clear you can’t manage funds appropriately. If you still want too though, then please seek the right help so they can put measures in place to try to make sure you’re more likely to stay afloat. Don’t however expect this to work for long without getting on-board with the essentials yourself.
In business you’ll either make money or you wont. This may sound harsh or overwhelming however accepting this is important. Without being all in, you potentially may as well not start. No doubt must exist, without building a Solid Business Foundation utilising Sensible Business Practice you have little more than a hamper wheel. Do you really want to go around in circles getting nowhere specific, which can result in bankruptcy or worse?
“Sensible Business Practice – Part 5“…….