To minimize the time you need to spend on your small business, you need to find the right partners and business advisers. Here is a video on how to find the right business advisers.
I cannot emphasize this strongly enough. Having the right advisers will save you a ton of work and a ton of money.
This video talks about how to find the right advisers and why friends and family may not fall into that category.
In general, the advisers you need may include:
- An accountant
- A business adviser (not necessarily the same as an accountant)
- A legal adviser, and
- Other specialists.
Managing the finances of a business is extremely important. In particular, cash flow problems are the undoing of many business ventures. It is important to make a profit but managing your cash flow is more important on a day to day basis. If you do not have the cash to manage your business on a day to day basis you will soon fail.
It is important to have a good accountant who can assist you set up your record keeping, and help you meet your tax and other government compliance requirements.
Some accountants want to to do all your bookkeeping for you as well. In my opinion this is not usually a good option and there are more cost effective solutions.
But a regular review of your financial records with your accountant is a good idea.
I said above that a business adviser is not the same as an accountant. Larger accounting firms have business advise sections with specialists but most smaller accounting firms do not. Accountants are trained in the historical review of the numbers, not on strategies and techniques to improve them.
Your business adviser should be able to assist you with marketing and sales and other business disciplines such as HR. If they don’t have the expertise themselves they should be able to point you in the right direction.
And be careful who you choose to advise you. Make sure you get someone experienced and who has the runs on the board in their own business.
Other advisers might include insurance specialists, internet specialists and more. It is important to seek assistance in areas beyond your expertise.