You may have heard people talking about scenario planning given the current state of the business environment. Should you be scenario planning? Before deciding whether you should, or should not, allow me to explain what it is.
One of the most exciting things a small business owner will do is hire their first employee.
Here are a few tips when you do so:
1. Budget for the Addition
I hear regularly "I want to improve my profitability."
Here is the P&L from a company that improved their return on sales to 20% from -3.6% the prior year:
There are a lot of options for financing your small business. You can opt for the traditional method of a loan via a bank. Alternatively, you could take advantage of crowdfunding.
With the holidays behind you and the beginning of a new year, your small business has an important deadline approaching. If you have paid $600.00 or more to individuals in the form of non-employee compensation you are required to provide a Form 1099 to those by individuals by January 31, 2020.
Routinely looking at the financial ratios of your small business will help you reach your goals. Looking at your balance sheet, profit and loss statement, and cash flow is one way to gauge how your business is doing. Reviewing financial ratios is equally important. Ratios are commonly used to make comparisons between different aspects of a company’s performance and how it compares to other companies in the same industry.
Do you struggle with keeping track of your Travel Mileage at your small business or startup? Do you find keeping track of your mileage to be a tedious task? I do. At the end of every year, I go through my calendar, note all the business events that I drove to, calculate the mileage using Google Maps, add up the miles on an excel spreadsheet (and I don’t drive nearly as much as many of you), and after multiplying by the allotted mileage reimbursement, I have entered a tidy business expense.
Are you a dentist who does work in exchange for IT services? Maybe you are a physical therapist who exchanges services with someone who does your social media. These are great examples of bartering.
It's all about the report! How often are you checking your books for accuracy? Reviewing a P&L (profit and loss statement) is a great practice to see how you’re netting out each month. But reviewing the GL (General Ledger) can quickly show you where something’s not adding up, or you've incorrectly entered data.