Build Your Empire – Future Proof Your Business
It really can be the most incredible feeling knowing that you are running your business the way that you want to; that you are doing ‘your thing’ and you are providing your products or services to people who want (and need!) them.
And then of course there are the less than incredible feelings of overwhelm and stress - when you’re doing all the things in your business; carrying the mental load, as well as performing the daily juggle between your business, your family, and the rest of the things in life.
I hear you.
The juggle is real – and the balancing act between the feelings of it being incredible, and those that are less so, can be tricky.
Over the years I have seen many businesses crash and burn as a result of the business owners simply not having the time (or mental bandwidth) to take care of absolutely everything in the business. Things fall through the cracks and over time, this leaves the business susceptible to pit-falls and risk.
If this sounds like it could be you, don’t worry - I have your back! I have identified 5 key things that business owners can do to help future proof that brilliant business that have been built from so much passion, grit, and determination.
Check-in on your Business Structure.
Do this annually.
What suited you a year ago may no longer suit. Sole traders often find that with growth comes the need to reconsider the structure and more often than not, change to a corporate entity (a company). Asset protection is a key factor here that shouldn’t be overlooked. Tax benefits, too, are an important consideration (this is a good time to check with your accountant and talk all things tax).
If you have brought new people into the mix, a partnership or joint venture may be the next step. You need to stay on top of this to make sure that you have things set up properly – and that partnership or joint venture agreement needs to be recorded properly in writing (in other words, professionally prepared!).
2. Review your business legals.
Again, do this annually.
This means to review your Business Terms & Conditions (or you may call these your service agreement or your terms of trade). Things change over time – for example, your services may have varied, your payment terms might be slightly different, or your cancellation policy might need updating.
Legal documents such as contractor agreements, employment agreements, or your third-party supplier agreements – all need to be reviewed regularly so you can be sure they are current and are still serving you.
There is no point getting your legals done and then filing them away and not looking at them again until you need to rely on them to protect you (such as to get you out of a jam with a client or supplier!). Staying on top of these will serve you well (trust me).
3. Get paid!
It seems obvious, but honestly, I have seen businesses fail to monitor cash flow to the point that the debtors list grows so significantly the business is on the verge of insolvency.
Don’t let this be you!
Have a proper debt management process in place that starts with properly tailored business terms and conditions (or your service agreement or terms of trade) that sets out what you are to be paid, how, and when. This should be followed by a functional invoicing structure which includes reminder notices being issued and then emails and phone calls to be made if necessary (ideally it won’t come to this, but having this system in place can be a game-changer).
We all know that cash flow is the cornerstone of any business, so be sure to know your numbers and don’t underestimate the value of an excellent bookkeeper (I would be lost without mine!).
4. Keep an eye on your lease.
If you lease your business premises, make sure you know when your rent review dates are and what the rental increase will be. Failing to factor these in can impact your bottom line.
Know when your lease expiry date is.
If you have the right to exercise an option to renew the lease, be clear on the period you have to exercise the option (and note the dates in your diary!). Take note of what the lease says about how you need to exercise the option (it will be in writing but does it need to be a letter by post or delivery, or will an email comply? And who does the notice need to be addressed to?). If you miss these dates and fail to exercise your option to renew within the prescribed time frame, you will lose your legal right to have a new lease issued – and this can have dire consequences to your business.
5. Outsource.
As business owners we are not supposed to do all of the things, all of the time. There are professionals, staff, and contractors for that!
Build your team. Value yourself and your skillset and identify where you can outsource to allow you to be supported and grow (just because you can learn about and run facebook ads, doesn’t mean you should!)
Work out your strengths and identify your weaknesses (we all have them!). Once you have done this, outsource, outsource and outsource some more. Whether you need support from a virtual assistant, a business coach, a copywriter or a detailed, visionary accountant - outsource it. When you do this you will find that you have organically and holistically surrounded yourself with the right team. This is the key to your future growth.
If you are thinking about outsourcing to independent contractors, you may also like to read these helpful articles:
Outsource with ease in small business and A Legal Checklist For Engaging Independent Contractors | Independent Contractors and Australian Employment Law
Our resource Australian Law 101 - Guide for Small Business might also be helpful.