Garibian & Associates is a certified public accounting firm based in Arcadia, California. When we sit with a business owner, we discuss the purpose and proper application of a business plan, the hiring and most effective use of the key personnel for immediate and future needs and the best financial strategy for achieving goals. If you have a growing firm, follow these three critical steps:
#1 Create a business plan. Your plan can include a mission statement, desired public image, target markets, products/services, geographic domain and expectations of growth and profitability. It must include financial projections and budgeting. It is important to have your accountant involved at the earliest stage of the plan in order to establish achievable goals and milestones based on your budget and projected income. Refer to your plan daily to see if your business activities are in line with your projections. Understanding and incorporating deviations in both expenses and income is critical to maintaining the accuracy and reliability of your business plan.
#2: Get your key people in place. The best way to attract top-quality employees is to have a strong, growth oriented business plan. Surround yourself with a motivated and positive group of people and encourage your team to offer and carry out innovative ideas. Position your firm for growth by creating an advisory board to challenge and help you plan the future. The board will provide a framework for making good decisions and will hold you accountable for following through on business plans.
#3: Stay on top of your financial future. Ensure that your internal accounting department is giving you the information you need to make timely decisions. You will also need to monitor the performance of your bank in meeting your financial expectations. As the scale and volume of your business increases, it will be necessary to periodically re-examine the terms of your credit lines and covenants. Getting quotes from other firms can be beneficial in getting the best terms from your bank. Your choice of financial institution has the potential to dictate your cash flow, cost of capital and even your level of growth. The marketplace is full of investors looking to buy into a business. Use your business plan to lay out your vision and define your competitive advantages to get the best terms for fresh capital. In addition to growing your business, you must also have an exit plan. Someday, you will want to cash out, sell the business, or turn it over to someone to take it to another level and it is important to have a well laid out plan in order to enact a smooth hand-off.