Let’s face it, today’s economic environment is tough on small businesses in the Ozarks, with several struggling just to keep the doors open.
While it might be most logical for an accountant to offer insight tied to cost cutting or generating more revenue, my experience has shown me that while those things are certainly important, there are other factors that can create fear among entrepreneurs. And that fear can lead to panic, resulting in financial mistakes that hurt in the long run.
From my perspective, there are five key factors that can keep businesses moving forward, positioning them to survive economic pressure.
No. 1. Remember why you’re in business.
What is your passion?
Maybe you love seeing what your product does for others, helping people or being able to support your family. It is important to define why you do what you do. That definition becomes part of your foundation, and part of what keeps you on track to the end goal. If an airplane takes off for New York City, it sets a course, and during the flight, it is constantly making slight course corrections. If it didn’t do this, the wind would push it off course, and it wouldn’t end up where it intended. The same applies to a business.
If you haven’t defined why you do what you do, then at some point you are going to wake up and not be where you intended. This step becomes your anchor and a compass for your business.
No. 2. Be confident.
Believe in yourself and your business. What happens when an athlete or a sports team loses confidence? The team doesn’t do so well. Neither will your business. So, you take a hit – get back up. Don’t let negative self-talk defeat you. Most of what you worry about never happens. Don’t keep yourself from achieving what you intend.
No. 3. Create the right team.
You need a team of counselors and advisers you can talk to and brainstorm with to work through issues and challenges. Choose these people wisely. Many people will tell you every reason why you shouldn’t do something versus the one reason you have to do something.
A good team needs qualified advisers such as a lawyer, insurance representative and a certified public accountant who can also handle tax matters. Your business is too important to go it alone.
No. 4. Envision the future.
Do you know what you want your business to look like in three years? I think people often get hung up on writing elaborate business plans. Even completing a template found online can be overwhelming, but the simple act of putting into words what you want your business to look like in three years is a huge step toward actually getting to that point.
To figure out what it will take to get there, first, you need to know how much money you need and what each account pays. Then you can calculate how many accounts you need. Use customers, sales, whatever measurement is applicable for your business. Start with the end in mind, and then work backward.
You’ll find it less overwhelming, but more importantly, using this process will increase your odds of actually getting where you want to go.
No. 5. Be ready to fight.
How do you respond when the waves are crashing in or when the pressure is mounting? Maybe you lost a big client. Maybe your market is being saturated with other players who are causing your margins to shrink. Maybe your pressures are health, family or financial.
Adversity is only a moment away. At times, it seems like nothing is working out or going the right way. Even if the best you can do is just open up for business for another day, at least you’re going forward. This step of having the intestinal fortitude to fight the fight can mean the difference between failing and thriving.
Hopefully, you can see how these pieces all fit to help businesses – and their owners – stay strong and survive economic pressures.
It’s never simple when tough things happen, but if you put wise work in place on the front end, it is easier to stay the course and continue to move forward.
Ted Smith is a certified public accountant with Ted Smith CPA at Compere & Robinette CPAs PC in Ozark. He may be reached at ted@tedsmithcpa.com.[[In-content Ad]]
