Every business, big or small, is susceptible to consequences of poor management, mistakes, poor planning, or just plain bad luck. Even the multi-national companies can be bankrupt due to mismanagement and poor decision making, much more a small business. Here are the three most common pitfalls a small business could encounter that could result in a big problem.
Cash Flow Problems
According to research, 82% of the failed business is due poor cash flow management. Efficient cash flow management is essential to the success of any business. It is important that you know where your income comes from and where does it goes. Professional bookkeeping in Balcatta can help you in managing the cash flow of your business.
You can create a simple tracking system that shows when, where and how much the money that comes in and out of your business. If you can properly track the cash flow of your business it can help you create a forecast of cash flow hazard which would allow you to devise a plan. You can set aside some money during the prosperous months to offset the possible deficit during lean months. It can also allow you to explore changes and upgrades without hampering operations.
Most of the small businesses started with a minimal staff and owner is the one-man team that handles all the administrative tasks. As your business grows you become overwhelmed by paper works and tend to neglect the creative side of the business. Without proper organization and support system, a small business can become the victim of own success. You can lose a potential client by one unanswered call. One missed appointment can damage your company’s reputation. Even if you have a good sense of organization, the too much administrative task can take you away from your core responsibility.
If your time is being sucked into doing stuff like payment, billing, payroll, collections, and accounting consider getting the services of bookkeeping in Balcatta to get your financial records in a good shape.
A little or no online presence
We are now in a digital age and according to research, 85% of the consumers start their major purchase with an online research. A nicely done website and accounts in major social media like Facebook, Twitter, and Instagram can be the first introduction of your company to your potential clients. Having a well-designed website can make a good impression on your potential clients. It can inspire trust and competence. With well-placed contact information, a potential client can have easy access on how to conduct business with you.