While every business begins with the dream of making money, few launch with any expertise in handling that income once it is generated. We regularly chat with startup founders who have great ideas, unstoppable talent, and dedicated investors but lack the necessary financial infrastructure to keep the business moving forward. Stop treading water and ask these five questions to help your startup break through to the next level.
Are you embracing new technology?
Sure, you’ve created a great new app that prioritizes and sorts data, but how are you tracking expenses and managing mileage? There’s a whole world of cloud-based platforms that simplify the expenses incurred running a business. Say good-bye to those boxes of wrinkled receipts by considering something like Expensify, an automation tool that manages expense reports, tracks receipts, and organizes business travel.
Are you hiring wisely?
When the business pipeline is flowing and contracts are being signed, there can be a false sense of urgency to grow the team. Just because there is work to be done doesn’t mean it’s time to hire a full-time employee. Depending on needs, timetables, and budgets, many startups should consider freelancers or sub-contractors to tackle new projects.
Are you anticipating growth?
It’s important to keep your financials up to date at all times. Why? You never know when a random conversation will lead to a new business opportunity or introduction. Potential investors and business partners will want to see current financials. Make sure the numbers reflect the present state of your business and are accessible at all times.
Are you being proactive?
Tax season is just once a year (or quarterly for some), but that doesn’t mean you should stop thinking about it after submitting your return. Adopt a year-round tax strategy that will set up a smooth and painless filing process.
Are you delegating?
If you’re struggling to categorize transactions or process payroll, it might be time outsource tasks that aren’t part of your skillset. Think about how you’re delegating time to your business. We all have 24 hours in a day—make sure yours are spent driving your business, not impeding it.