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New Business Survival Kit

Oct 22, 2015 8:30:00 AM / by Brian Paulson posted in monthly accounting

business_survival_kit

The reason most startups go out of business is simple: they run out of money.

Making it through the first eighteen months of business is tough. In fact, Forbes estimates that 80% of entrepreneurs fail within this period. In order to make it past the two-year mark and beyond, you need to have a strong financial strategy.

So what does it take to build and sustain a thriving business? To help you succeed, we’ve put together a survival kit for new business owners. 

Here’s what you need:

1. A Strategic Plan

A company without a strategic plan is planning for failure. It’s not enough to hope that you’ll be successful - you have to have a roadmap for your future. You strategic plan [QUESTION what are good things to have in the plan?] could include your present and current goals, your organizational structure, your target markets, etc.

2. Adequate Accounting Records

Your accounting records are important for a number of reasons. Good records will measure your profitability, track your growth, and protect you in case of an audit. The only way to stay financially on track is to measure and record your money flow.

3. Expert Advice

Unless you have an accounting background, your finances can be tricky to manage on your own. Outsourcing your accounting to an expert will not only save you money, it will also mean greater security. Working with an accounting service means you’ll have expert advice when you need it and protection during an audit.

If you have a strategic plan, good accounting records, and expert advice from the start, your business has a good chance of being a success. A monthly accounting service can offer all three of these things to your company. The right accountant does more than end-of-year tax accounting, they also provide proactive business coaching to help you both survive and thrive as your company gets off the ground.

The Business Profitability Checklist

Image by DLG Images via Flickr, licensed under CC BY-2.0.
Brian Paulson

Written by Brian Paulson

Brian received his Bachelor’s degree from the University of North Dakota with a double major in accounting and financial management. He’s a member of both the National Society for Tax Professionals and the National Society for Accountants and serves on the board of directors for the Professional Association of Small Business Accountants.

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