The post How to judge your business success appeared first on Checkbox Accounting.

This includes the pulse or heart rate, body temperature, respiration rate, and blood pressure. Taken together, these help indicate the state of the patient’s essential body functions.

If any – or all – offer some cause for concern, the doctor can start diagnosing the patient more thoroughly, before suggesting a course of action…

And now we’ve arrived at the part where you’re wondering why we’re discussing basic medical practice.

Well, this idea of ‘vital signs’ is something that can be comfortably extended to your business.

Your company’s financial health should be examined regularly to make sure there are no underlying maladies that will only grow worse if left untreated.

Knowing What to Look For

These financial ‘vital signs’ have many names, some of which may be familiar to you. They include: Key Performance Indicators (KPIs); business metrics; critical success factors; and moneymaking statistics.

No matter the label attached, they are all essentially the same thing: a means of tracking the performance and success of your business.

Just as a soaring temperature or irregular heartbeat will make a physician want to dig deeper in diagnosing their patient, there are a few things you should keep an eye out for when it comes to the health of your business.

For instance, revenue is a clear indicator as to the financial performance of your company. By monitoring your income in comparison to your expenses, you will have an understanding of how much you are making (or not, for that matter), and why.

And when it comes to revenue, consider the various streams. In particular, online sales are simple to measure by implementing sales software, allowing you to spot trends and take action before it’s too late.

Or perhaps you could track the referrals that bring you new business. This will help you determine whether or not your marketing endeavours have been worthwhile, and if your current clients are actively recommending you to their network.

Once you have those customers, think about retention. How many clients are returning to your business over time after first working together or selling them on a discount or offer? Are you maintaining a loyal customer-base, or are you struggling to retain them? The answer will give you an insight into your company’s customer service capabilities.

Take the Pulse of Your Business

These are just some of the Key Performance Indicators – or vital signs – that you ought to look out for as you measure the performance and success of your business.

Understanding how your business is doing at any given moment is crucial to helping you make informed and effective decisions as its leader.

Tracking financial and non-financial metrics can help keep your business healthy. And as with your body, spotting any worrying trends early will make it a great deal easier to remedy than if you leave them untreated.

And it can be tough when you dig deep and track these metrics, only to discover that your business is living on borrowed time. When that happens, you must be ready to evaluate the alternatives; and quite often those alternatives can mean making difficult decisions, such as letting people go, selling the business, or filing for bankruptcy.

Start Tracking Today

Putting a plan in place to track key business metrics is fundamental to the growth and success of your company.

By staying on top of your KPIs, you will be in a much better position as you work with an up-to-date and accurate budget. And by doing so, you will be able to grow and invest in new resources, personnel, or locations, without putting your business under financial strain.

If you’d like to discuss setting up a system to track your key business metrics, please contact us.

The post Is your business ill? appeared first on Checkbox Accounting.

Long days, longer nights, and no-one to talk to when the going gets tough – it can feel isolating and demoralizing.

But there is a solution: speak and share with other business owners.

Many small business owners actively fear working with other businesses, worried that they may take advantage of them rather than offering guidance and advice.

However, the rewards can be terrific. By tapping into your local network of fellow entrepreneurs, you have the opportunity to become more knowledgeable, understanding, and efficient.

Why Should I Reach Out?

There’s no two ways about it; being a small business owner is stressful.

All the responsibility, all the decisions, the planning, strategy, and execution; it all falls squarely at your feet. And it can be quite overwhelming.

That’s why having a mentor – or joining a local group of small business owners – can help alleviate some of that stress. They give you a sounding board with whom you can discuss your problems and share your successes.

And this isn’t a new concept by any stretch of the imagination.

Take a beat and think about the franchises you see just about every single day. Starbucks, Wendy’s, Dunkin’ Donuts; they all share financial data and marketing information with the other stores within their franchise in order to better understand the overall market.

Won’t This Threaten My Business?

You might look upon this arrangement as a threat to your business. Sharing confidential information with a perceived competitor will understandably make you uncomfortable, and it will impact your business.

But, if done right, that impact will be positive, not negative.

By working with your peers, you will improve your understanding of the local marketplace, boost your efficiency and delivery, and oversee a better standard of customer service. This will only serve to drive more business and increase profits.

Where to Start?

If you run an independent small business (i.e. not a franchise) then it can be tough to know where to start when reaching out to fellow entrepreneurs.

Becoming active on social media (Twitter and LinkedIn in particular) is certainly a good idea. This gives you access to a whole host of like-minded individuals, many of whom won’t be swimming in the same waters, and are therefore less likely to appear threatening to your business activities.

But the fact is, nothing beats face-to-face networking.

Search online for local organizations, groups of similar business owners, or an association to join in order to meet and develop valuable business relationships with your peers.

Here are a few in our neck of the woods worth checking out:

Roseville, CA

• Roseville Granite Bay Business Network
• Women In Networking (WIN) Roseville
• Miscellaneous Small Business Meetups – Roseville (Meetup.com)

Sacramento, CA

• Sacramento Business Social Network Group
• Sunrise Business Builders
• Sacramento Area Business Connection

U-Link Network also has a number of local groups meetings listed on their website.

If you can’t find one nearby or relevant to your industry, consider setting up your own. It can be as informal as meeting for a coffee every few months, but just as valuable as an established organization.

And be sure to complement these meetings by fostering professional relationships with business advisers and mentors.

Put Yourself Out There

As your business grows and develops, and you begin to better understand your own key financial data and moneymaking statistics, you will find that you actively want to compare yourself to your peers.

It’s only natural to seek to benchmark yourself against others. In fact, it can become a crucial part of the overall success of your business.

By simply being active in your local business community, you will open up the doors to new and prosperous relationships, promising leads, and a wealth of advice and experience.

And by improving your knowledge of the local market, it will push you to be a better business leader.

Put yourself out there and make it happen.

If you’d like a helping hand in getting started, contact us today to speak with one of our friendly advisers.

The post Don’t Be Afraid to Work Together appeared first on Checkbox Accounting.

No matter your reason for taking the leap as an entrepreneur, you will encounter a number of concerns as you progress. It’s important that you know how to recognize and handle these concerns so as to avoid derailing your business.

In dealing with many small and medium-sized businesses over the years, we have been able to distill some of these concerns down to four of the most common questions.

At some point in your business journey, you will find yourself asking a variation of the following:

1. How will I achieve what I want in my personal life?
2. How will my business help me achieve my goals?
3. Do I really have control over business performance and numbers?
4. How do I get more from my business?

In this post, we will help you navigate these concerns and emerge from the other side a better business owner.

How will I achieve what I want in my personal life?

Running your own business should be about achieving personal freedom.

Freedom to work on what you want, when you want. Finding joy in the day-to-day is the ultimate goal for many entrepreneurs.

So, to get to the heart of what you truly want out of your business – and how it impacts both your personal and professional life – ask yourself the following:

• Why did I start my business?
• How is my business organized?
• Do I feel I am on track with my goals?
• What keeps me up at night?
• What do I do in my spare time?

Once you have a handle on why you’re in business for yourself, and where your passions lie out with your business, you can start working on balancing the two. Otherwise, the business will consume you.

How will my business help me achieve my goals?

In order to achieve your personal and professional goals via your business, you must be the one in charge.

Now, this might seem a little strange given that you own your business; who else would be in charge?

But the truth is, your business can quickly take on a life of its own if you let it.

You must be the one in control, rather than taking a back seat and letting the business drive you. If you’re achieving success almost by accident, then you and your business are driving blind without a strategy or a roadmap.

Your goals will go unfulfilled if you don’t treat your business as more than just as means of making ends meet.

Do I really have control over business performance and numbers?

We know it can feel like you don’t; that your numbers can spiral out of control amidst the day-to-day of running your business.

But you can and you must take control of those numbers, and by extension, the performance of your business.

You should:

• Know exactly what your numbers are for the month
• Have complete clarity on which products or services are selling well (or not)
• Understand what’s in your financial statements, and what those numbers mean
• Know how much tax you’re going to pay, well ahead of the due date

When you do, you can actually look forward to meeting with your accountant!

How do I get more from my business?

When you have a handle on your goals, you’re building a business geared towards meeting those goals, and you’re accurately tracking your numbers at least monthly, you will get more from your business.

It’s really that simple!

You can then look forward to scaling your business, hiring employees (if you want), outsourcing work, spending time working on your business rather than in it, taking a day off now and again, and even taking a vacation.

Let’s Address Those Concerns

If any of those concerns are keeping you up at night, then here’s how we can help:

1. Personal Goal Setting

We can help you get to the very heart of the reason why you went into business in the first place. We will determine what your goals were, and how they have changed (if they have at all).

If your business has taken on a life of its own, we’ll find out why, and how far you are from achieving the goals you had when you started.

By taking you through a personal goal questionnaire and a one-on-one meeting with one of our advisers, we can develop a report that will show you what you want to achieve, what’s missing, and how you can go about accomplishing your goals.

We’ll then help you devise a specific plan of action – one with dates, milestones, and clear responsibilities.

2. Business Planning & Strategy

We want to help you take control of your business. No more autopilot, no more backseat driving.

Together we will develop a business plan and strategy that will have you questioning everything, and testing what you think you know.

We won’t focus solely on ‘best practices’; rather, we will help you find your industry’s ‘next practices’.

What’s more, we want to instil a belief in you, your team, and your mission that will see you carry out this plan to fruition.

3. Monitor KPIs

It’s no use merely glancing at your income statement in order to monitor your business. That’s a bit like watching a hockey game by only looking at the final scoreboard. To get the bigger picture, you must look at the activity within the game.

We will help you map and monitor your progress by focusing on a few Key Performance Indicators.

These will be tailored to your business, meaning no generic indicators or reports. Only valuable and actionable information.

4. Profitability & Cash Flow Improvement

Finally, we will help you get to grips with your profitability and cash flow by getting you up and running on cloud accounting software.

Everything will be real-time and instantly trackable by both you and us, meaning we can spot any potential cash flow issues, so that you can take action ahead of time.

How Can Checkbox Help You Become Great?

In his book, Good to Great, Jim Collins wrote:

“Greatness is not a function of circumstance. Greatness, as it turns out, is largely a matter of conscious choice and discipline.”

We can guide you to greatness. We only ask for your conscious choice to work together, and your discipline to meet, review, and check in.

You can grow a great business. Let us help. Contact us today to get started.

The post The Four Biggest Questions You’ll Ask Yourself as a Business Owner appeared first on Checkbox Accounting.

Or maybe you’re between boardroom meetings, planning the growth and expansion of an existing company.

No matter where you are in the lifecycle of your business, one thing will always ring true.

You will need cash.

After all, cash is king. But it’s not always readily available.

That’s why it’s fundamentally important that you, as a business leader, understand the ins and outs of business loans.

In this series of three posts, we’ll provide you with an overview of the available loan types; the concerns you may experience as a borrower; the various push backs that can come from lenders; the benefits of SBA loans; and the pros and cons of buying vs leasing equipment.

What Type of Loan Do You Need, and Why?

Before deciding that your business definitely needs a loan, you must first ask yourself for what purpose you are borrowing the money.

Typically, loans can be categorized as short-term and long-term, and will be secured or unsecured (difficult to obtain).

If you’re borrowing money to get started, you will most certainly be asked for a Personal Guarantee. That is to say, you will be required to personally vouch that the money will be repaid, even if the business fails.

It’s also less likely that you will be able to borrow the money and repay it over a longer period of time if you do not have a track record in the sector or industry you are entering with your new business.

However, if you have an established business turning a profit, you’ll find borrowing money on more agreeable terms much easier.

You may still be asked for collateral to secure the loan, which can take the shape of valuable equipment, for example. This would then be seized by the lender to recoup their losses should you fail to repay the loan.

Alternatively, if the loan is unsecured, you may be faced with higher interest rates, meaning repaying a great deal more than you borrowed over the duration of the loan.

Concerns Go Both Ways, You Know

Borrowing money is a big decision, particularly if you’re still at the early stages of your entrepreneurial journey.

You may have some apprehension when it comes to taking on a loan, and that’s understandable. Interest rates and bank fees can be confusing at the best of times, while the fine print of a loan agreement can throw its fair share of curve balls. For instance, you can often be penalized for repaying your loan early, so that’s definitely something of which to be aware.

Your best bet is to shop around, gather all the necessary information, and find a bank or financial institution with which you feel comfortable.

But even if you come armed with all the necessary facts and figures, lenders can still be concerned enough to not offer you a loan.

You ought to be aware that they will question your ability to repay the money you’re borrowing, your collateral, your credit history (personal and business), the cash flow forecast of your business, and even the competency of your management.

With this in mind, you may wish to look at borrowing money from the SBA.  Stay tuned for our next post which outlines the benefits of an SBA loan.

Questions? Contact us at Checkbox.

The post A Guide to Selecting the Right Business Loan appeared first on Checkbox Accounting.

Step 1: Pre-Business Planning

– Have you selected the right business for you?
– Do you have a business plan in place?
– Do you have a strategic marketing plan in place?
– How do you coordinate business and family life?

Step 2: Start-Up: Finances, Budgets, and Numbers

– Do you have the right type of financing and business loans?
– Do you know what the key operating statistics are for your business?
– Do you know what your tax liability will be for the current year?
– Do you have the right insurance coverage?

Step 3: Human Resources: The People Factor

– Are you paying a fair wage and competitive benefits?
– How are you training your new employees?
– Are you managing your staff effectively?
– Do you know the right way to terminate an employee to protect yourself?

Step 4: Operations: Work Flow, Customers, and Sales

– Do you have systems in place so that your product or service is consistent?
– How do you manage your customers, grant credit, and respond to customer service issues?
– Do you have a sales and marketing plan in place, and do you adjust for market changes?
– Do you know when to expand your business?

Step 5: Building a Salable Business and the Sale

– Does your business run smoothly without you?
– What is your business worth?
– Who are the buyers for your business?
– How do you transition your employees to a new owner of your business?

Step 6: Transitioning to Life After Business

– What do you know about wealth management?
– How do you adjust to life after work?
– How do you pass on your values to your kids?
– How do you leave a legacy after you are gone?

Follow us as we take you through each of these processes and help you…dream big! Stay tuned for our first chapter!

Food for thought:

Dream big, but always break it down into small steps, because small steps are easy to achieve and a lot of small steps equal one big step and a lot of big steps equal your dream.

The post Introduction to Operation: Rescue Main Street appeared first on Checkbox Accounting.

Businesses worry on how to make themselves stand out within social media due to the Internet being a competitive place to have your business stand out in.

With a few tips, you can have your business be more recognizable amongst your other competitors.

Start by creating a name or URL that includes the search terms that you want people to find you by as well as having a catchy name that people will remember. You don’t want a name that is difficult for people to search for due to the Internet being so broad.

Make sure there is consistency within your name and URL if you are using different social networks as well as websites. On the social media sites, include a brief information paragraph about your business so people have an idea of what your business does. Don’t forget to add your website url in this information paragraph.

Catching the attention of people is crucial so make sure that you create your social network to be attractive so that people will check you out as well as follow you. Don’t simply post about your business and expect people to come to you.

Be open and engage within the social media network. You can start by posting relevant pictures, articles, as well as posting and responding to your followers. Don’t give off the impression of “I just want you to follow me back” but that you really care and are wanting to stay connected with them.

You want to leave a good impression for your followers (maybe even future business partners) by being up to date on these social networks. If people want to keep in contact and know your location, you can either have this posted in your About sections or you can leave an email address saying “contact us for more information”.

Don’t be shy but be persistant and seem as available as possible to the public!

CPA Corporation is able to offer you services in financial consulting for your business as well as if you have any questions about getting your business started. Don’t be hesitant to contact us or check out our homepage!

The post Having Your Business Stand Out Within Social Media appeared first on Checkbox Accounting.

Take a look at these following tips; they will help ensure you that you and your professional relationships will not only last, but THRIVE!

Make an Appealing First Impression

First impressions mean everything! A first impression sets the foundation for your business relationship.  Are you projecting yourself in a manner that will make somebody want to shake your hand or invite you out to a business lunch? How you act, and even how you dress, will make a difference in your future relationships.  Dressing professionally can be highly regarded in the corporate world, for example, but what if you are dealing with a business owner in fitness, construction, or gardening? Dressing too professionally can create a negative first impression because they may not immediately relate with you. Dressing professionally without going over the top will allow you to create a more comfortable business relationship.

Compatibility is a Two-Way Street

Your next step should be determining if the potential relation is a good fit for you, your personality, and your company. First, determine whether they have similar goals and values. Are they loyal and do they have integrity? What are their future goals? How do they treat other people? Even if they might be a good fit for your company based on the facts, take the time to determine if YOU are a good fit for THEIR company as well. In those first few moments of conversation, you can often determine whether it will benefit you more to pursue this relationship or refer them out to another company.

Disagreement is Positive

At some point, disagreements are inevitable in any business relationship, but don’t view them as negative.  Instead, look at disagreements as opportunities to discover new ways to communicate and reinforce the relationship. Sit down and talk it out. What went wrong? Can we fix this disagreement and continue the relationship? If you take the time to address the problem and mediate the situation well, then it will actually strengthen your professional relationship. At this stage, it is also important to go back and reevaluate your compatibility. If it has changed drastically, don’t be afraid to walk away if it is no longer a good fit.

Compromise Changes

In the natural progression of relationships, people and circumstances change.  Sometimes this can affect compatibility (and agreeability – see the notes above on disagreement).  Maybe it’s time to go back to the drawing board and look at your original agreement or reason for forming a professional relationship. What drew you to this company in the first place? Reassess your relationship periodically. Continue to evaluate where you are both going and make note of things that need to be worked on. After a year of this, you will see significant progress in your relationship.

Be Proactively Aware

For each of your professional relations, their needs will be different. Think about your professional relationship while driving to the meeting, or before they get to your office. Figure out what each of their needs are and when they need it, and you can discuss at your meeting how to proactively get things implemented.

Communicate to be Remembered

There are many ways to communicate including emailing, phone calls, texts, social media and face-to-face interaction. With so many ways to communicate and so many things to communicate about, it is easy to forget that people like to feel special. The key to successful communication is thinking about your business relationship and doing something out of the ordinary to show them what it means to you. Don’t be afraid to call them and ask to grab coffee. Remember their order and surprise them at your next meeting.  Clients love it when you think of them. Constant communication will keep your professional relationships alive and fresh. Even if they are long distance, be sure to continually contact them and do things that will show you are thinking of them.

The most important thing to remember is if you remain genuine in your relationship, it will make a difference in the long run. Listen intently and show interest in growing their business. Strive for perfection; even though mistakes might occur, use the suggestions above as ways to improve. As your relationships grow, so will your business!

The post The Truth About Intelligent Business Relationships appeared first on Checkbox Accounting.