Arf! Arf! It’s me, Breyer, the office curator. This is the next installment of my Cook CPA blog, and I am still giving the best advice a dog can.
When dogs are chasing a squirrel, we get caught up in the moment and we may end up tumbling over in the bushes or we may even jump the wrong fence while chasing our passion. Business owners who are initially off to a good start also sometimes end up off track when they are chasing success and growth in their business venture.
This blog will review how to get your business back on track and set a focus on top line revenue growth.
How To Get Your Business Back On Track By Revisiting the Initial Steps for Setting up a Business
The blog “Common Things to Consider When Starting a Business” discussed initial considerations for potential business owners such as meeting with professionals and setting up insurance. Once you have taken some initial steps and your business is moving forward, you may want to revisit some of these. And this is an essential step if you want to learn how to get your business back on track.
Reviving Your Business By Revisiting Your Business Plan
Remember that business plan you created when you set up your business or secured initial financing? Dust off that plan and review it to see whether the financial targets you set are becoming a reality. You can work with your bookkeeper to get daily financials to make sure your projected income is meeting the plan. You may also want to review the plan to make sure you have implemented other business goals as well.
Perhaps you were that dog who jumped in and forgot to create a business plan? Work with your CPA to set up a business plan, get a tax ID, and finance the business. After getting financing, you may need to set up bank accounts and bank cards in your business name, if you haven’t already done so. Setting a plan and securing additional financing can help you to meet your growth targets.
Business Revival Strategies – Reviewing Your Business Entity
If you worked with an attorney initially to set up your business name and form an entity, you may still need to work with your bookkeeper and CPA to make sure your business entity meets your needs and future goals. Reviewing your daily financial and monthly financial reports from your bookkeeper can give you important information about whether you are meeting your growth targets. This information can help your CPA determine if your business entity is the right one for tax purposes and future growth.
For those entrepreneurs who had trouble narrowing down a business idea initially, this review may be a good time to make a commitment to the products and services that are most successful. Reviewing your financial statements will help you to narrow your focus to the products and services that are most feasible for long term growth.
Get Your Business Back On Track By Getting Social
Have you still been marketing by referral? It’s time to create a website or contract out for someone who can create one. Make sure you are making the most of social media to promote your business and fulfill orders.
Reviving Your Business By Implementing Efficient Hiring Practices
As you move from doing all the work yourself to having a team of employees take on the workload, you may need to clarify your hiring practices as well as set up policies and procedures for the work environment. If you haven’t yet, be sure that your business or employees have obtained any necessary licenses or permits so that you are operating within state or county guidelines.
Remember that reviewing your financial targets and company goals is also a chance to clarify your brand and where your business should grow in the future. Growth is an important part of a puppy’s life to create a successful dog. Growth for businesses leads to success.
Focusing On Top Line Revenue Growth To Get Your Business Back On Track
As you review your initial plans for your business and update your future objectives, one area to focus on is top line revenue growth.
What Is Top Line Revenue Growth?
Top line revenue growth means the increase in gross sales of a company over a certain time period, and the measure indicates the financial strength of a company. The name “top line” doesn’t indicate something that is superior; instead, the name comes from this figure being at the top of a company’s profit/loss statement. This measure applies to a specific reporting period, and the figure is calculated on core business operations (doesn’t include interest or gains from sale of assets).
Hiring A Good Bookkeeper To Get Your Business Back On Track
Not sure how profitable your business is? Hire a good bookkeeper so that your financial statements can be quickly calculated for each monthly, quarterly, and annual period. Bookkeepers are responsible for providing four types of financial statements that can help you in evaluating your profitability and top line growth.
A good bookkeeper will provide an income statement (profit & loss or P&L statement) which indicates your revenue and expenses over a specific time period.
Two other helpful reports your bookkeeper can provide are a balance sheet which is a snapshot of your financial position at a point in time and a cash flow statement which records the cash and cash equivalents entering and leaving the company.
Having a good understanding of your financial top line will allow you to make decisions that increase profits such as taking on more clients, increasing sales, improving your brand, or any strategy that can permanently increase your profits.
Once you have a clear understanding about where you are at financially, it is time to consult with your CPA firm. They can assess whether your entity type is the best one from a tax standpoint.
Keep that business on the right path by reviewing your plans and keeping that passion for business growth alive! Meanwhile, I have some squirrels to chase.
