As a director of a start-up or fast growth company, you’ll already be well aware that if you get the rapid growth you require, everything else will tend to fall into place. It’s not easy of course, juggling an increase in sales one minute, to then handling scaling problems, like any inevitable managerial and organisational changes.
But regardless of how your start-up or fast growth company is doing, we’ve got 7 simple things to remember, to help keep your business successful.
Remember Your Responsibility For Well Being And Reporting
As a Director, you are responsible for the company’s overall well being and for reporting to the Companies House and HMRC. There are a few filing obligations that will need to be completed – such as company tax returns and paying corporation tax.
You’re strong organisational skills will be essential for the filing of documents, or alternatively you could forward these responsibilities onto an accountant.
Take Steps to Attract Investors And Secure Funds
Getting cash into your company isn’t easy and any investors, funders, or venture capital companies won’t be willing to throw cash at a company without any structure or compliance in place. They won’t just be waiting for your idea to form, so remember that it’ll be down to you to foster the company’s business relationships with potential investors, suppliers, and of course, customers.
Think about creating a realistic budget to gain traction, practicing your pitch so that you can give an overview of your business quickly, and take the time to get to know your potential investors. Research them as individuals, and find out if their interests and beliefs mirror yours, to increase your chances of success.
You Always Need a Business Plan
It sounds obvious but your startup or fast growth company always needs a solid business plan. It’s not easy to write one, as often you’re trying to predict the future, but a business plan could certainly make things easier in the long run.
A well researched and data driven business plan can help you to approach a financial institution for a loan, apply for a small business grant, or pitch to investors. It can also help you to discover new ideas and develop fresh perspectives. You may still be able to find success without one, but having a well-constructed business plan can certainly make things easier.
Keep Track of Your Decisions
As a Director, it’s hugely important that you keep track of any decisions you make, as things can soon start to build up. Often the best ways are the simplest; have frequent board meetings and note down exactly what was discussed. Tracking your decisions is just as important as tracking your sales, web clicks, or anything else.
Try noting down how your business goals will be impacted by any decision you’re considering, and always note down viable alternatives instead of thinking too narrowly. Involve other people in your business if applicable to reduce bias and enhance your perspective. Always write down any important information you’re missing. Your decisions and how you implement them can make or break the future of the business.
One Sale/Order Doesn’t Mean You Have a Business
We understand that you know this, but do you know how many sales you need for your business to make a profit? When your company is relatively new or brand new, you need to be planning for success, with a sales plan that targets growth.
Make sure that you’ve clearly set out your sales/order targets for your business, along with the number of them you need to reach your target level of profit. Implement strategies to direct the efforts of your sales/order teams, and make use of incentives or commissions etc to motivate and reward them.
You Still Have to Prepare For Failure
Unfortunately, the success of your business is never guaranteed and around 90% of all new start companies fail or close within the first three years. A startup or fast growth company is always risky and failure can result from a number of different reasons, from unexpected growth and lack of experience to cashflow problems and poor credit arrangements.
If the company does fail, you need to make sure that you’ve already taken the steps to ensure you are not personally liable for the company’s debts. Always have adequate and timely financial information to hand and stay alert to danger signs, such as pressure from creditors. If things don’t improve, then consider stopping trading and starting appropriate insolvency proceedings – so that you can learn from your mistakes and start again.
The All-Important Accounting
Keeping accurate records of all your company’s transactions from day one is vital, even before it’s started trading. Even when your start-up or fast growth company has trading cashflow and money in the bank, it can sometimes seem as though you’re doing lots of the administration yourself. It can feel as though things are starting to slip because of your focus on the accounting tasks, taking you away from the actual function of your business.
It’s important to understand that no one person can do it all and support is easy to find, and relatively inexpensive. You can hire an accountant as an extra hand to help out with any financial duties, and if you choose the right one, you’ll also gain a trusted and experienced business partner.
That’s where we come in.
With RJF, our initial advice is free and we have extensive expertise when it comes to providing effective accountancy services for start-ups.
We can act as a business partner who will work alongside you to provide invaluable business insight and develop effective strategies – helping you to take your business further. Get the accounting help and experience you need today through us, to avoid having to deal with any financial disasters further down the road.
So if you’re looking for an accountant who can serve as a strong foundation for the future of your start-up or fast growth company, please contact RJF today.