Small businesses must begin setting high expectations and adopt a well-thought-out plan to be in business tomorrow

“The biggest mistake a small business can make is to think like a small business.” We’ve heard this touted around when it comes to establishing a small business. It requires talented people on your team to run a successful company. You need to recruit the best candidates, not just the people who happen to be available, including family and friends. Hiring family and friends is a smart move as long as they have the talent for the positions they fill. Surrounding yourself with talented people and with people you can trust is key to a successful business. Small businesses must begin setting high expectations and adopt a well-thought-out plan to be in business tomorrow.

Many small companies lack clear objectives or a corporate vision. Instead of looking forward, they have a survival mindset. The survival mindset is not a bad thing but should not be the focus of staying in business. Small companies do this because they are short of talent and unable to meet long-term objectives. With COVID-19, many small companies had to switch gears to survive. If you had a clear purpose or vision when you started your business, you might have to re-think your vision and goals now to be in business tomorrow. Rather than only getting through the week, you can start planning quarterly, weekly, and five years down the road. 

Another practice adopted by many small companies is the use of a single bank account for all purposes. I’ve seen a lot of small businesses with one checking account and an overdraft. It is advisable to have one bank account when starting a company separate from your personal account. As a business grows, I recommend that it creates several accounts for a variety of reasons. The practice of having one bank account would not reassure responsible financial management. This single number determines the company’s entire future.

Among the first steps in growing your company is to hire a reliable bookkeeper and Giffin Bookkeeping can assist you in managing these accounts and keeping track of your finances. It is tactical to have more than one account like a reserve account, a debt-paying account, and a growth account.