The Basics of Your Finance and Admin Structure
Getting your admin and finance ducks in a row is one of the most important things you can do in your business.
You want to be able to quickly look at your business and get a great snapshot of your financial landscape. The easiest way to do this is to make sure you’ve got all of your most important things in one place and you’ve automated as much of the finance and accounting as possible.
Some of the basics you’ll want to have in your foundation are:
Sales Plan: Sales is the lifeblood of your business. Your sales plan needs to detail your sales goals, your sales strategy, tactics, and your sales process. Your sales plan looks at your pricing, and your customer’s purchasing habits and anticipates the average customer orders.
Owner Pay Plan: You started your business to give yourself more time and freedom. A major part of your freedom is paying yourself as a business owner. Your financial plan needs to include how you’ll pay yourself consistently as an owner.
Profit Plan: A profit plan is a proactive method for building your wealth and should be a priority in your business each month. This details your target profit allocations and quarterly profit distributions.
Your Tax Plan: Taxes are an unavoidable part of business, yet most business owners are stressed when it comes to tax time. Your financial game plan sets you up for tax success from day 1, so you know how much you need to allocate towards the government and you’re not scrambling at the end of the year to pay for taxes.
As a startup entrepreneur, you need to be an active part of the profit game. Having a thorough financial game plan will help you stay on track and start right. If you’re interested in learning more about building your profit, check out the Startup Business Bootcamp.