Excerpt: As business owners, watching expenses is key to hitting profit goals and helping with a positive cash flow. However, there are some areas where the potential risk (or future expense from liability exposure) exceeds the cost. 2-minute read.
As the old saying goes “you’re only as good as the people you surround yourself with”. It rings true for many because savvy business owners know the value of staying in their lane, focusing on what they are good at, and letting other experts handle the rest.
If you are looking at the news, reading some economic forecasts, and thinking about tightening your belt a little, there are many areas where you can certainly reduce your overhead; things like phone service, internet, merchant services, and software for your company are just a few examples of where you can save money without too much risk. However, there are some areas that are well worth the investment because they will save you money in the long run. Here are my top four areas where I believe the long-term risk of cutting back outweighs the short-term ‘reward’ of potential savings.
- Attorney
An Operating Agreement is a must if there is more than one partner in your business. Utilizing a local professional will not only customize the Agreement based on the individuals involved, but they will ask questions you would not think of with an online template.
Even if you don’t need an Operating Agreement, you likely have at least one contract, whether it be with independent contractors, vendors, or customers. Investing upfront to ensure the business is protected in transactions will give you peace of mind and avoid future costly contract disputes or lawsuits.
- Insurance
Having the proper insurance is more than just the premium you are paying. More importantly, you want to ensure you have adequate coverage for your business. A great insurance agent will get to know your business and make recommendations based on your specific needs. Whether you have commercial vehicles, your employees are driving their vehicles for company business, or you are ensuring all your equipment is covered, take the time to review your business specifics with your agent. Most people have a love/hate relationship with insurance. You hate filling out all the forms but love when you have a covered claim. Not being correctly covered is not a risk that is worth taking.
- CPA/Bookkeeper
Most business owners do not have an accounting degree. When you utilize a CPA, you obtain a financial partner that can assist you with business decisions that will impact your tax scenario. Your CPA can also help with year-end tax planning.
Most business owners don’t have the expertise, or the time, to maintain their financial records properly. Hiring a bookkeeper to handle your financials is also a wise investment. Not only will it save you money with your CPA when your financials are in order, but it also allows you to have financial information at your fingertips should you need to take out a loan, or to track revenue and expenses promptly.
- Business Consultant
I don’t want to toot my own horn, but utilizing a business consultant like myself is a wise investment. Not only do I share best practices with my clients, but I can provide an outside perspective on how to minimize your risk, be more efficient, reduce your overhead and increase your revenue. My clients find a significant return on their investment with Flourish Business Consulting. Plus, with my business model, I am a one-time investment and not a monthly fee.
Contact Flourish Today
As we head into 2023, there is so much uncertainty around us. The media tell us a recession is coming…yet some financial data points continue to confound that! All we can do as business owners is stay in our lane, ‘control the controllable’, and try to Flourish! A big part of entrepreneurial success is ensuring you have a solid, efficient foundation for your business, building a good team of professionals around you, and having the courage to admit that you’re not an expert in everything!
To schedule a complimentary consultation to discuss how my business consultancy services could help you grow your business, email info@FlourishBiz.Consulting, call 480-980-6066, or use the contact form to reach us.