When you are launching your startup, you will likely have grand visions of expanding your business in the future. While the immediate priority will be to ensure your company’s survival, there comes a time where it hits a plateau, and you will need to take the next step and expand your organisation.
Expanding your company is exciting, but there are several concerns as well. Aggressive expansion when you are not equipped to handle the growth can have severe implications for your startup. However, if you feel it is time to scale up, let us share three practical tips to help your company prepare for growth.
Tip #1: Maintain a stable cash flow
Cash flow is the lifeblood of every business. If it ever declines or dries up completely, companies can expect to wither and even close down overnight. While managing your cash flow sounds easy on paper, it is more often than not a challenge to put into practice.
As a relatively new company, your client base will likely be small, and there is no guarantee that your existing clientele will continue to engage your services. However, once you have stabilised your client base, the next step is to develop a new business strategy that can help you secure the cash flow necessary you need to expand your startup.
Tip #2: Practice invoice factoring
One ideal solution to maintaining a stable cash flow is invoice factoring. This process allows you to overcome any potential delays between sending out your invoices and the clients paying their dues.
So how does invoice factoring work? It allows you to gain early access to the money you are owed by handling your client invoices over to a finance firm that agrees to pay you upfront before it subsequently collects the original payment from your clients.
This solution is ideal for clients who regularly miss their scheduled payment, creating cash flow issues for your company. Through this method, you can start to build a healthy cash flow, giving you the foundation you need to grow your business.
Tip #3: Expand your staff roster and outsource non-essential business needs
If you are looking to expand your company, you will likely need additional staff to assist you with the increased workload. There is certainly an element of risk involved. After all, if your client base dries out, you will be left with plenty of wages, but no money to pay them with.
A solution you can consider is to outsource your non-essential tasks to specialised firms. Doing so frees up additional funds for you to hire the essential employees you need to grow your company. One task you can consider outsourcing is your accounting needs. Often, the cost of engaging the services of a reliable firm is more affordable than staffing a team of accountants to maintain your books.
At Ackenting Group, we offer a suite of professional accounting and bookkeeping services to meet your company’s every need. Allow our seasoned accountants to provide you with up-to-date and accurate financial reports so that you can gain a better understanding of your startup’s performance and whether it is ready for growth.
Treading down the path towards continuous growth requires getting the proper fundamentals in place to ensure the endeavour is a success. We hope what we have shared has provided you with what you need to begin your expansion plan.
If you require any assistance on accounting services, feel free to drop us an email at email@example.com or contact us at +65-66358767. At Ackenting Group, we offer a complimentary 30 minutes online consultation for us to better understand your business requirements.