Surely if you’re running a successful business a nice set of finances will come with it. Wrong, look at how many big companies struggle with money. The latest being Monarch.
They were never struggling to fill the seats on their planes. But behind closed doors a mess was slowing forming that they couldn’t get out of. Before they knew it, their multi-million pound empire was crashing and burning. Once you’re in administration, you’re rarely ever able to come out.
So, do you now think you business is still safe? Yes, for the most part your business will be floating along is a happy bubble of profit. But along the way there will always be setbacks that stop you in your tracks a little. But business wouldn’t be business if everything was smooth sailing right? Take a read of this article, and prepare yourself for a few of the things that are listed.
Bills and expenses can sometimes take businesses by surprise, mainly for small businesses. If you’re a large corporation, you’ll be used to the big tax bills that come at the end of the year.
For a first time small business it can be a little bit of a shock. If you don’t already have one, hire an accountant to manage your finances. They’ll be able to put aside a little bit each month towards your end payment. Tax bills can sometimes be huge, so preparation is always key.
There’a also smaller taxes to pay such as the payroll taxes, any loans you took out to get the business going, and even rent to consider. Sometimes all of these on top of each other can be a little daunting for a smaller business. But as stated, monitor, save for it, and get someone to help with it.
Employee’s bring with them a lot of finances, and a lot of issues. So many companies are under financial pressure to give regular pay rises, bonuses etc. to try and be one better than their competitor. Sometimes businesses are promising all this, but not delivering. Then staff will leave, work flow and profits will drop, and before you know it your finances really aren’t getting along with your business.
Only ever offer what you can deliver. Your employee’s are the driving force of your business. Without them, your finances will always look a bit sorry.
If you’re looking to hire employees, always try and keep it internal. If you go to a headhunter, the final fee they charge for finding you the perfect employee is huge. It’ll set you back so much, that it’s so much easier to just go through the hiring process yourself. When you have the perfect team of employees, you need to make sure the workplace is safe for them.
It is all so common for companies to nearly go bankrupt due to being sued from accidents in the workplace. If you’re a warehouse based company, accidents can so easily happen. One lacking safety brief and you could have chaos on your hands.
A workers comp lawyer will dry to squeeze you dry for compensation of their client. And rightly so. It’s your duty to keep all your staff safe. Take a bit of time making sure everything is secure, there’s no wet floors, and that everyone has had proper training.
Machinery is another common set back for many companies. Just like with humans, machinery decides to break at the most inconvenient time. If you work on a building site, you’re not likely to go be able to complete a job without something breaking, or going wrong, and the whole day is lost.
That’s a whole day’s worth of pay missing for the people that work for you, and a whole extra day you’ve got to spend on the site. You’ll be surprised just how much one day of lost work will cost your business. Make sure all tools are working efficiently before starting the day. If something’s broken, you have much more of a chance of finding a replacement before the day is over.
As we said, humans are just as likely to break, or in other words, become ill. Make sure you’re hiring reliable people who don’t just take days off because they can’t be bothered. Having to pay them sick pay as well as finding a replacement can be a hard and expensive job. You need reliable staff more than you realize to keep your finances stable.
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