Tragically, many small businesses with great ideas close their doors every day, for the same reason. They simply cannot afford to stay open. Sometimes the business model is somehow flawed. More often, the problem is a matter of cashflow or financial management. The potential for profit is there, but it remains elusive. Revenue comes in too slowly, and expenses accumulate too quickly. Can these problems be avoided? In many cases the answer is “yes, with the help of a financial consultant.” That is why Rancho Cucamonga entrepreneurs turn to Whyte & Associates, Inc. for financial business consultation services.
How good planning can stop bad decisions
Every decision that you make is a building block in the future of your business. You need to know how or if a piece fits into your plan. Your financial advisor can help you define and clarify your plans, mapping your path to business success. This includes developing:
- Budgets – If your quarterly and annual budgets are realistic, they can serve as a guide for daily operations and routine financial decisions. If you need to recalculate the budget allocating more for department A, you will need to decide where that money will come from. If there is no “extra” in your budget, you know you have a problem. Most importantly, you know this before it snowballs, while there is time to correct course.
- Business plan – Many entrepreneurs never bother drawing up a formal business plan. This is akin to going on a trip without planning your route. You have a vague notion of where you want to go, but you spend far too much time wandering, taking wrong turns, and changing course.
- Financial projections – It typically takes at least a couple of years, sometimes much longer, for a business to start turning a profit. Long-range projections estimate when and how you expect to reach that and other milestones. This is important for many reasons. It allows you to make decision in line with your current stage of progress, and helps you see when you are veering off course. Furthermore, this information is important for showing investors and loan-makers why they should support your business.
Your path to profitability starts with a phone call
If your business could use a little advice – or a lot of advice – about financial management and planning, contact Whyte & Associates, Inc. at (909) 575-0080.
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