Four Tips for Leading Your Small Business Forward

Kingdom Gold  > Payroll, Payroll reporting, Payroll tax services >  Four Tips for Leading Your Small Business Forward

Benefits of payroll outsourcing

Did you know that employer firms comprised of less than 20 workers make up 90% of small businesses in the U.S.? The American business landscape is largely comprised of small businesses, and they continue to be a strong backbone for both the economy and for job creation, accounting for 65% of net new jobs. It can be difficult to manage a small business, especially when a few wrong terms can be precipitous when you’re already on a tight budget and schedule.

Once you get a better handle on managing your business, it’s easier to structure for future growth, keep track of data, and understand which paths are the most profitable. Here are four important tips you should keep in mind.

1. Don’t be Dependent on One Client

As Investopedia points out, if a single client is able to make up more than half your income, then you’re not so much a business owner as an independant contractor. It’s important to diversify your client base, though, if you want to grow and reduce risk for the future of your company.

2. Better Money Management

Did you know that one of the top reasons that small businesses fail is “no knowledge of financing,” according to Statistic Brain? Because money stretches to so many aspects of your business, understanding your finances is key to moving forward. This means knowing your cash flow, and keeping track throughout the year of business accounting and taxes — don’t end up with a shoebox full of receipts come January.

3. Payroll Processing System

Relating back to money management is the importance of having a good payroll system. The IRS estimates that 40% of small businesses owe almost $900 in payroll and bookkeeping penalties. These mistakes could easily be eliminated by using payroll services online. Not only does this help business owners stay on track with pay rules and regulations, but it ensures that you don’t need to waste hours of time each week handling pay paperwork instead of managing your business.

4. Familiarize Yourself with Others in the Industry

Sure, you can learn from your own mistakes — but why not skip that pain and learn from someone else’s if you can? No matter what your business specializes in, chances are you’re not the only one doing it. Networking with other business owners is a great way to discuss what works and what doesn’t work.

How well does your payroll processing system work? Let us know in the comments. Great references here.

Leave a Reply