Every successful business started as a thoughtful idea – even a dream. But, what does it take to move a concept from ambition to a successful, thriving business?
At Lodovico & Associates, we often meet with new business owners and experienced entrepreneurs as they enter into a business start-up or scale up a current business. While each business has its own set of unique needs, I frequently find common trends amongst businesses that are successful in creating a solid financial foundation. Here are five of them.
- Define your goals and plan for them. Identify precisely what you hope to accomplish in year one, five, etc., then put an action plan in place. From marketing to workforce development to inventory – ensure all of the right pieces are in place and create processes around them for efficiency.
- Protect your cash flow. What are your main sources of revenue? Determine and define what steps you can take to secure your top income sources. For instance, who are your top clients or prospects? What strategies do you have in place to form and build solid relationships with these clients to ensure a source of cash flow for years and years to come?
- Invest in your business with tax deductions in mind. Don’t be afraid to spend wisely for tax deductions. Be aware of all of the deductions you and your business are entitled to in order to reduce your tax implications. By investing in your business through marketing, new equipment, employee education, pension plans and more, not only are you fueling your business, but you’ll spend less at tax time.
- Build your equity. Plan for the future by developing a business with worth. Not only will you protect your own financial security, but your business will become attractive to future acquisitions, mergers and exit strategy opportunities.
- Build your network. Where are your referrals starting, and how can you fuel more? Who are your key advisors? Seek out those who can create new sources of referrals and those who have already been successful at what you hope to accomplish. Relationships grow businesses.
With Lodovico & Associates, new business owners have a range of expertise and services at their disposal. Contact us to learn more about how we personally help businesses reach their full potential.
By Tony Lodovico. Tony has been a partner of Lodovico & Associates, P.C. since 1990. Tony has over 30 years of professional accounting experience in both the private and public sectors of business. He also has over 15 years of experience in the evaluation of closely-held entities for such purposes as gift tax, estate tax, mergers and acquisitions and marital dissolution. He conducts numerous presentations and seminars on tax planning, entity formation, business valuation, cost segregation and estate tax services.