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Good news for small business owners: according to the US Small Business Administration, nearly 80% of small businesses survive their first year!

However, that number begins to drop as time rolls on. Only half of small businesses pass the five year mark, and a mere third celebrate their tenth anniversary.

Taking steps to create a good foundation in the early days of your business is essential for a sustainable and profitable future. Here’s how.

Keep your eyes on your business numbers

If you’re just starting out, you might be surprised by just how quickly those day to day expenses add up! It’s important to make sure, right from day one, that you consistently track your spending, file your receipts, and monitor your income and expenses with an easy, reliable accounting system (We are Xero bookkeepers!)

Cloud based accounting software (such as Xero, MYOB or Sage) can help you know exactly where your finances stand in real time—with secure access to accurate, up to date financial data anywhere, any time.

In addition to being able to collaborate more efficiently with your bookkeeper and accountant so you can get advice whenever you need it, you’ll avoid the stress and hassle when it comes to tax time—and be empowered every day to make better, smarter business decisions.

Don’t neglect marketing

Entrepreneurs are incredibly busy, and it can be a real challenge to find the time to promote your business. The other challenge for new businesses is money—but every small business needs to invest in marketing activities that will bring in more sales and keep the cash flow flowing.

It’s wise to be wary of costly large-scale marketing strategies when you’re just starting out. The best use of your time in the early days is to really get to know your customers and how they tick, so you can design (or hire an expert to mastermind) highly appealing, cost-effective campaigns.

Don’t turn a blind eye to what you’re competitors are up to. Monitor how they attract new customers and think about how you can improve on what they’re doing—or take a completely different approach to promoting your business that will help your young brand stand apart.

If you are looking for assistance devising a marketing plan that suits the requirements and budget of your new business, get in touch with the friendly marketing team at The CloudSitters. Alternatively, you can start off by downloading a free social media calendar.

Touch base with a business advisor

Every successful entrepreneur learns from experience—not to mention failure, which can be the greatest of all teachers.

While it’s true that “you don’t know what you don’t know”, you can shrink your learning curve by reaching out to experienced mentors for guidance.

Consider working with a small business consultant who can provide personalized advice to help you make it through the first year—and an ongoing objective perspective on your business, industry, and market going forward.

Final thoughts

It’s been said many times that a business is like a baby—and it can be incredibly difficult for entrepreneurs to trust someone enough to hand over any aspect of it – whether it be bookkeeping, marketing or even administration. Many business owners work themselves to exhaustion because they can’t let themselves to take a weekend off. They neglect their most important relationships and never get to enjoy their successes because there’s always more to do.

The most successful entrepreneurs know they can’t do it all—nor should they—and build in time for rest so they can be more productive at work. Train someone early on to run the business in your absence so you can take a rejuvenating vacation, and enjoy the freedom you likely dreamed off when you first imagined going into business for yourself.

Contact your local bookkeeper

The information and insight a bookkeeper provides goes a long way when it comes to your new business! We absolutely love setting up fresh books from scratch because we find it to be far more cost-effective for business owners in terms of getting set up correctly from day one. This is because it minimises the risk of time and money spent fixing mistakes later. Squeaky clean, all ready for you to use so that you can set off on the right path to fly with your new business!

Whether you’re just after some financial advice for your new business journey, bookkeeping tips or assistance selecting an accounting software package such as MYOB, Xero, Quickbooks Online or Receipt Bank, we can work through it together.

See below for our bookkeeper locations; if you’d like to ask a question, please feel free to use the form below and we’ll be in touch with you soon.

Our Bookkeepers

Justine Day: Southern Highlands / Bowral Bookkeeper
Amanda Graham: Southern Highlands / Bowral Bookkeeper
Petra Austing: Southern Highlands / Bowral Bookkeeper
Karin Evans: Gold Coast Bookkeeper
Pru Hall: Wollongong Bookkeeper
Jackie Short: Canberra Bookkeeper