What If Administration Is Your Weakness?
Administration is a big part of your business that oftentimes we don’t know much about.
We didn’t start a business thinking about the legal side of things and thinking about billing and payables and accounts receivable, getting our money collected, paying the bills, and keeping the lights on, we really didn’t get into business thinking about these things.
We got into business thinking about our skill, our natural capability and that we can make money doing it.
Right?
The administrative side of the business is often going to be a big component that we outsource, it’s going to be a component that oftentimes we don’t have enough work to justify dedicated internal personnel.
We don’t have a need to hire someone full-time so when it comes to
- accounting,
- legal services
- HR, or human resources,
We will often find ourselves looking for outside help.
We are going to look for external personnel that can help us on a small time or part-time basis, maybe five to twenty hours a week, is all we need for someone to come in and work on these components of our business.
These are parts of the business that we are not experts at, and it is often better to get other people involved, to work with experts in these areas, to make sure the work is done correctly.
We want to work with experts right, we don’t want to do our own legal work, we don’t want to write our own contracts, we want to work with a lawyer to develop a contract template that we can use for many projects in the future.
The goal would be to work with a contract expert up front, to develop a system for doing business that works for our company over a long period of time.
On the accounting side of things, we are going to need someone to manage our books, we’re going to need someone to take care of our accounts, our invoices going out and our bills coming in, someone has to make sure the checks get cut and the bills get paid.
Someone has to make sure we’re getting paid from our customers and these transactions have to be recorded and the books have to be managed and maintained over the long term to make sure that the business is ready come tax time.
How we structure our money, how we structure our finances, our financial management systems become very important to the health and operation of the business.
If you have seen my other videos, you many know that I am a fan of the book Profit First, that teaches a financial management system that I recommend to my clients.
If you develop a financial management system for operating your business ahead of time then you won’t have any challenges when it comes time for things like taxes.
Additionally, another benefit of creating a financial strategy up front is that when you are ready to grow, when you want to implement some type of growth plan and growth strategy, you know how much money is in your operational account to accomplish these growth strategies.
On the administrative side of things, we have to be aware of our bills coming in and our bills going out, we have to be aware of the company’s financial position and we just want to make sure that we are doing things from a proper legal perspective so that we don’t put ourselves at risk.
It really is important that you have people helping you in these focus areas where you are probably not an expert and the best way to do that is to look for outside help from experts. If you want to review your business, discuss where you might need help, get my recommendations and referrals, and see if we are a good fit to work together, email me at [email protected], I’d be happy to talk with you anytime.
