History tells us that start-up businesses struggle from both lack of strategic planning and organization and being more reactionary than proactive. The following is a three-tier approach that entrepreneurs should follow when first starting out:
1. Plan: Develop a strategic plan. How are you going to get from point A to point B? The plan will be living documents that grow with you. Develop a financial plan that encompasses anything from budgeting to tax planning. Plan for your numbers — don’t let your numbers control you.
2. Manage: Manage your people, processes, and systems. Again, manage your numbers. Set up an accounting system to track and measure on an ongoing basis.
3. Measure: Compare how you are performing against your plan and goals frequently. Develop Key Performance Indicators (KPIs) that give you a quick check on the health of your business and your progress towards goals. HBM
Financial expert Adam Shay is the owner of North Carolina-based accounting firm Adam Shay, CPA, PLLC. http://www.wilmingtontaxesandaccounting.com/