As a new small business owner there is plenty to learn when it comes to running your business not to mention managing your business finances. Most entrepreneurs who start a business of their own don’t come from a finance background, and have to learn the basics, bookkeeping, funding, and what actually matters to lenders and investors as they journey through the unknown.
If you’re feeling stuck with your business, here are some practical dos and don’ts to get you and your small business on track.
Chase Your Passion, Not Just Money
For entrepreneurs like Guy Kawasaki, Chief Evangelist at Canva, it took nearly 20 years to come to understand that successful companies are the ones who create meaning.
As a small business owner, your number one priority shouldn’t be to tell investors that you you’re in it for the money. That’s definitely not what they want to hear right off the bat. Instead, Kawasaki suggests focusing on “creating the next curve, rather than improving on sameness”. Dare to be different, follow your passion, and your business will reap success in the long run.
Do Remember that Your Team Defines Your Business
Hiring a “dream team” is critical to your small business success. If you’re a rookie entrepreneur recently starting out, remember this: investors put their money in people, not just a business. Hire people who not only bring industry expertise, but also people who have passion and the willingness to learn.
Do Select Investors that Actually Care About Your Mission
Don’t waste your time with investors that aren’t in it for your mission. Choose investors who align with your values as passionately as you do.
Just like hiring your “dream team”, you should be applying the same filter to fundraising your small business. Barry Moltz, author of Bounce!, says, “Fundraising has never been about capital—it’s about people”.
Think of whoever you’re screening for as an ambassador for your business. This person is going to be an extension of your business—representing you and your small business to the external, wider community and on every facet of the media including online, print, and in-person.
Select investors not because they’re here to make 10x, 50x, or 100x return on their investment. Choose investors who are invested because they truly care about the mission.
As author and motivational speaker, Simon Sinek, says in his Ted Talk: “The goal is not to sell to people who need what you have, the goal is to sell to people who believe what you believe”.
Do Leverage Cloud Technology to Minimize High Startup Costs
Today, pretty much anyone can start a business of their own on a minimal budget thanks to the wide range of online technology, services, and marketing & management tools available.
Take advantage of automating your business using social media tools such as Hootsuite or Zoho Social, accepting payments and sending out invoices through cloud accounting software like Kashoo, while eliminating travelling by using live conferencing tools like Skype or Zoom.
If you’re starting out in the business world with little to no understanding of the financial aspect of running a business, then luckily for you, leveraging Kashoo for your bookkeeping can help eliminate redundant administrative tasks from your weekly to-do list indefinitely! Switching to cloud accounting provides you with great efficiency benefits such as the ability to connect your books to your bank account. Every time you make a transaction or receive a payment, Kashoo syncs with your bank account to automatically pull transactions into your accounting software—data going straight into your pocket for later. Keeping track of your business transactions has never been easier!
Don’t Undervalue the Effectiveness of Proper Bookkeeping
It’s not uncommon to forget to log your business transactions and misplace your income tax records. All of this can be avoided by using a cloud accounting software like Kashoo! Kashoo makes it easy for you to stay on top of your bookkeeping so you can be confident you won’t be audited by the CRA. Inconsistent bookkeeping can cause you serious headaches come tax season that are easily avoidable. Use the Kashoo app on-the-go so you can record all your transactions on the fly. You can also view and share your reports from any of your devices—making it easy for you to see your financial standing at-a-glance. Avoid missing legitimate tax deductions that you would’ve otherwise received by never having missing paperwork or expenses again.
Don’t Forget to Keep Track of Your Numbers
For many small businesses, it’s not tight cash flow that hurts them—it’s not knowing what to do about it.
Too often, small business owners don’t understand their own financial statements well enough to know when a product line, new product feature, or a customer account is costing them money. As your business grows, it will need more cash to finance its growth AND the insights to make important decisions that guide your business. Stay on top of your financial reporting so you can see exactly where you stand at all times. And check out these tips on managing your cashflow.
You Don’t Have to Journey Alone – We’re Here to Help
If you’re interested in making more accurate, smarter business decisions, then why not take the initiative to manage your books properly? Try Kashoo today to tackle some of your small business “Dos” including staying on top of your business financials.