How Solid Is Your Business's Foundation?
Posted on April 24, 2020 by Kandy Sartori , One of Thousands of Executive Coaches on Noomii.
You run your business day in and day out. You think you have solid business, but do you? Are there any cracks that need repaired? Let's take a look...
You started your business for a reason. Do you recall the reason? For most business owners, the answers revolve around time freedom, location freedom, simply freedom to run your own company your way and perhaps to spend more time with your family. This is all wonderful news and I’m sure your company has grown since you started it. However, have you created a solid foundation for your company? Is your company set up as a legal entity? Do you have a business checking account? Do you have worker’s compensation if it is applicable to you? Are you insured correctly?
For some of you reading this, those may be ‘elementary’ ideas. Yet, I have seen companies that have been around for over a decade close because their spouse’s ‘real job’, which we will talk about later, was transferred to another state and the entrepreneurial spouse’s business didn’t survive the move. The reason the business didn’t survive is because it was not set up as a legal entity and no trademarking was done. This was sad to see and then watch that business owner set things up from scratch all over in the new state. If that business owner had set things up correctly initially, they would have had all the social media following them, referrals, and a solid foundation in which to continue building their company in the new state.
Also, do you have medical insurance? I already hear the grumbling…. My spouse has it so I don’t need it, I’m on their insurance policy. (Because they have a ‘real job’) Let’s dispel the notion of a ‘real job’. I an positive you have heard that ‘J.O.B.’ stands for “Just Over Broke”. YOU, yes – YOU, have the ‘real job’. If you lose a client, you simply go out and find another client. If your spouse loses their job, they have no income. Pause here for a moment. Let that sink in. All YOU have to do is find another client. In the meantime, if you have built your business on a solid foundation, you still have other clients paying you, while you find a new client to replace the one you lost. Your spouse has lost all the income. It’s harder for an ‘employee’ to find work. Back to medical insurance, when you have your own medical policy through your own business, you are adding to your foundation. It also takes a bit of relief off of your spouse and it also gives you, the business owner, more credibility. It takes some work to get your business to the level to have insurance, but you can do it.
What about your own retirement planning through your business? What about your rainy day savings in case of a disaster for your business? Do you know when to hire employees verses using contractors? Are you books set up correctly?
There are so many things that go into creating a solid foundation and the more solid your foundation, the higher you can build your company.
Kandy M. Sartori, CPO® | Business Coach
Sartori Solutions, Inc.
Office: (234) 678-0576
Email: Kandy@SartoriSolutions.com
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