Growth in your small business company is great news but it can also bring many challenges. Focus on these 3 key areas to make your business a success.
If you prefer reading, check out the transcription below the video.
Post-Covid business growth
Good afternoon, everyone. It’s Irfanali with RMI once again. I hope everyone had a fantastic
week.
This week, what I wanted to touch on was some positive news and what I’ve seen coming out of COVID. As things get back to normal a lot of our small business clients have actually seen quite a bit of growth.
So what I wanted to touch on are some challenges that I’m seeing coming from growth because although it can be good if it’s not managed properly, it can obviously become an issue.
1. cash flow in business
The first thing I wanted to touch on was cash flow requirements. It is probably
the most important thing as you’re trying to grow a business.
There are going to be issues in terms of hiring new people, customer service, marketing, and there’s a lot of investment that the company will take in order to continue this sustainable growth.
I tell a lot of our clients to make sure you’re planning for that growth, make sure you meet the cash requirements.
One of the best strategies I think you can try is when you’re having a really good year, go back to your bank, show them your financial statements and ask, how much credit can I get from you? Can I get a line of credit? Do you need any other financing for other projects or things like that to actually maintain and manage?
So, cash flow is very crucial in business.
2. Hiring the right people
The second important thing is hiring.
And it’s funny that we’re standing here today because obviously behind us, I’ve got our core values for our firm and I think in your organization you need to “hire and fire” based on those core values.
I think if you can make sure your team is all in alignment and focused on the same things and they think the same way, that will help propel your company forward.
3. operational challenges in business
The last one, a little bit of a catch-all but it’s about the operational challenges that you might have in a growing organization.
It depends if you have inventory in your business. Inventory management can become very crucial as you start to scale up.
Other challenges that you might face from an operational standpoint would be simple things about compliance. For example, do you need to switch your GST from being an annual filer to maybe a quarterly or a monthly filer?
Simple things like that can peak their heads through as you continue to scale your organization. So, it’s really important you maintain focus in terms of your overall operations, what requirements you have with the government, and overall filing responsibilities.
Contact professional accountants in calgary
Once again, it’s Irfanali with RMI. As always, if you have any questions, feel free to reach out.
RMI Professional Corporation in Calgary is here to help with accounting services for small business owners.
If you have questions about managing growth in your company, book your Free consultation today!
We can also be reached at 403-457-4232 or by email at info@rmiassociates.com.
Thank you and have a great week.
