Starting a business is hard work! Sustaining a business is even harder. Generally when you start a business, you may not have the capital to hire any employees. Often times it is just you. One of the perks of starting small is you are generally able to manage your work load and give your customers the attention they deserve. As you grow, the work becomes a little less manageable for just you and you sometimes struggle to keep your customers happy. On top of trying to juggle everything the more business you generate the more you owe the IRS. What do you do? Here are a few tips and tricks on how to get over that hump and sustain your business long term.
College interns and even high school interns are great options for growing businesses. Hiring interns allows you to build into young people and help develop their career paths. Many interns are unsure of the path they want to take career wise and generally pay can be a bit less than what a full time employee may expect. In addition, if they are bringing in business or creating revenue for your company then you can justify offering them a full time position once they graduate.
Focus your networking and marketing
Getting your business started requires getting your name out there. The first several years you spend quite a bit of time and resources meeting people, marketing, and spreading the word about your business. As your business starts to grow and you see a steady flow of customers, networking and marketing can take time and resources away from your existing customers. However, that doesn’t mean you stop it all together, you just have to be strategic in the areas where your business sees the greatest return on investment. It is very helpful to keep track of where referrals come from, then eliminate the areas where you are losing money on your investment. But remember, the people who show consistency in networking groups and events generally are who will begin getting referrals. Building trust takes time but when you focus on a few networking opportunities at a time, you will also be able to manage the work load.
Re-evaluate your business structure
Many small businesses start out as sole proprietors or LLCs. From a paper work and management standpoint these entities are the easiest to manage. However, as your business grows there are greater risks and tax consequences to be considered. If you are a sole proprietor and you are taking on assets, debts, or more risk it may make sense to change to an LLC to limit personal liability. If you are an LLC and your revenues are increasing to a point that self-employment taxes may become an issue come tax time, consider filing as an S-Corp. No matter what, if your business is seeing substantial growth it is worthwhile to discuss with a CPA if you’re current business structure is right for your growing business.
For more resources and support on helping your business achieve sustainable success, contact Doss Business Consulting.