Ways to protect your growing business

It is a good thing when a new business begins to grow, but the owner will need to consider more than just bringing in the money and marketing the business. There are a number of things that will need to be taken into consideration to help to protect the business while it is growing.

Be prepared

Having a contingency plan in place is a must. There are many new business owners who fail to allow for any emergencies or changes that might affect the business but this is something that should be in place from the very early stages of the venture. Having a certain amount of cash to fall back on will help a great deal. Such a contingency fund should be put to one side and kept only for an emergency.

Getting professional advice is a must. Accountants and lawyers are trained to be experts on business issues so for a larger business it is worth paying for their expertise. Not every new business owner understands issues such as ir35, but others are paid to understand them and to deal with them. A freelancer starting out might find it beneficial to opt for using an umbrella company that will deal with administrative matters, such as tax and National Insurance, on their behalf.

Be money wise

Small businesses often do have to borrow money from the banks but it is important to ensure that the borrowing is not excessive and that repayments can be met. Over stretching finances through large and regular repayments on borrowings can leave a business very vulnerable. Ensuring that money is organised properly is also essential. Putting away funds to cover tax bills as they arise is very wise, and as money comes into the business spending needs to be prioritised. VAT (if applicable) and tax have to be paid, so these must always be a priority.

Be a good manager

Make sure that your managerial skills are up to scratch. Knowing which are the right people to hire and which ones it would be best to part company with is important. As a manager there will be some tough decisions to be made and anyone who is not prepared to make them will struggle running a business that has employees. There are plenty of training courses available to help people hone their managerial skills and learn to deal with difficult situations.

A good manager will also be able to see clearly what they want to achieve in the future. Being able to make plans for the next few years at least is important. Some long-term vision will help a business to plan and grow in the right direction, but should also be able to pinpoint any weak spots in the business as well as any potential threats, making them far easier to ward off and deal with.

Finally, it is a good idea not to let any business take over your life completely. Business owners need to be able to switch off at the end of the day and spend time with their families and friends, allowing them to return to work the next day refreshed. This enables them to deal more effectively with problems and stress, as well as having the energy to promote the business with enthusiasm thereby attracting new clients.

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