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Salt Lake City Bookkeeping Blog

[Infographic] Are You Ready for Your Company's Growth?

Posted by Austin Walker on Jun 1, 2016 8:30:00 AM

Are you, as a small business owner, ready to grow? It seems like a lot of entrepreneurs have the same aspirations, but not all of them are ready for it. Is your company ready?

What Is The Rush?

It may be pressure from external sources, such as investors, or maybe you're a salesperson at heart, and not necessarily a manager. Growth for a salesperson means more sales, but now there's a new skill you must master: implementation of operations to deliver. Working for other companies, this was probably never a issue for you. But now, company sales can't escalate nearly as fast as you'd like.

Whatever the reason, managing growth is just as important as creating it. Large companies have to manage their growth to make sure that current sales and projects can be delivered without compromising quality or their promise. If hiring can't keep up with the delivery of sales, eventually the service or product offered will lose value and growth will become negative.

Make sure that the growth of a company is handled responsibly. Any thriving company can fail just from under-delivering on their promise. Know that you're doing the right thing and that stagnant revenue is perfect for some entrepreneurs. Just listen to yourself.

Ready to Hire?

Is there enough cash in the bank to make sure that your new hire is going to get paid? Monday is a quiet, lonely place for a small business owner who was not able to make payroll.

However, there are a lot of benefits to hiring. Delegating tasks frees you up to make sure you can accomplish what the business demands or allows you to network and create more sales. 

Are you ready to give up a little bit of your control of the operations?

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Topics: Small Business, Entrepreneurship, Growth

[Infographic] Growth Through Financials

Posted by Austin Walker on Jan 13, 2016 9:45:57 AM

Growing a small business can be one of the biggest dreams of any owner or entrepreneur. It doesn't come easily, though, without some proper practices that help to increase the success of the business growth. For instance, company owners may want to look at making sure that the model they have is scaleable. If the model is not scaleable, the increase in clients and business could actually hurt them more than help. The growth process has to be managed in such a way that looks at how to scale the business responsibly, how to make marketing and sales dollars effective, analyzing financial reports, and making adjustments based on those results.

The actual cost can be different among all businesses, even if they are in the same industry. To get a better grip on how much it's going to take to get marketing and sales on the same page, Brad Sugars, a contributor on Entrepreneur.com, conveniently gives us the formula to calculate a customer's lifetime value. With the lifetime value, we have a better idea of how much target customers can be worth to the company, and how much money can be spent to acquire new ones. For most companies, it is about 5-6 times more expensive to acquire a new customer, when compared to growing revenue from clients who are already paying.

A tactic that is common but can be foolish is giving the marketing department a cut of last year's revenue. If a company is growing, it can be expected that the marketing budget amount should at least mirror the amount a company is  planning to grow. For example, if the business would like to grow an additional 12% next year, on top of the 5% of revenue that marketing is currently receiving, the budget should be increased to match the 12%.

A marketing expert can be utilized to understand how much money should be invested in your growth, and can also help plan for where that money is going to go and what should be accomplished.

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Topics: Financial Forecasting, Small Business Coach, Growth