There may come a time, as an entrepreneur, that your start-up shows potential to grow into a medium business. This is a critical moment. While it’s simple to start a business with sheer determination and drive, taking it to the next level requires knowledge and a specific skill set.
Growth is not always easy, and there are bound to be teething problems. Your company culture might change, and the growing numbers of both staff and customers might make it difficult to keep an eye on everything. Complex issues, like cash flow management, talent management, and financial organisation, rise to the fore.
Here are a few tips to ease the transition:
- Hire and retain people who will help ensure your future success. As your company grows, you’ll need to hire more people. Get to know the next two people you recruit and ensure that they are strategic hires rather than rushed ones merely to fill a gap. If affordability is an issue, you could also use freelancers who have the skills and experience you need, without the added expenses of a full-time hire.
- Leave accounting to the professionals. To avoid tax issues, which might have legal implications, be sure to leave your accounting to the professionals. Processes like invoicing, payment collection, and banking can be simplified to keep your finances simple and ensure your cash-flow isn’t affected by avoidable errors.
- Manage cash flow for a successful transition. Cash flow is often a pressure point for small and medium businesses. Make more informed decisions about payment terms and expenditure by ensuring that your cash flow is properly forecast. SMEs also have access to alternative finance options. These include invoice finance, which offers advance payment on unpaid invoices, or fintech solutions that help you draw capital against unpaid invoices, without long-term contracts or guarantees.
- Put the right systems and processes in place to ensure that your business is functioning at maximum efficiency while remaining compliant with local regulations. There are numerous affordable business management solutions on the market that assist with all functions – from HR and payroll, to internal communications and customer relationship management.
Sage Business Cloud Accounting
With Sage Business Cloud Accounting, you spend less time on admin and more time growing your business.
When choosing your software, consider what architecture would suit your budget and business processes, such as data protection and security. A cloud-based solution gives you access to your business system at any time, any place.
If you have ambitions of scaling your business, opt for a solution that will serve you into the future, and that will grow seamlessly alongside you and your company.