Navigating through the financial landscape of brick and mortar businesses can feel like an Olympic sporting event with hurdles galore! Don’t panic though – we are here to guide you through all the necessary financial hurdles so your business can secure gold!
The Starting Block: Budgeting and Forecasting
At the core of all successful (and unsuccessful) business stories lies budgeting and forecasting: your first hurdle. Instead of metal bars, this hurdle consists of numbers on an excel spreadsheet instead. As exciting as that sounds, budgeting and forecasting represent your initial step to financial success – predict sales, forecast expenses, budget costs – similar to fortune telling with less crystal balls but more calculators! Get it right, and you could take one giant leap closer towards reaching success; stumble and you may face financial faceplant; don’t despair though: every great athlete falls at some point; just get up, dust yourself off, and keep going!
Hurdle One: Funding and Financing
Once your budget is in order, the next hurdle – funding and financing – should not be underestimated. Think of this step like taking on those high jump bars that seem to defy gravity! Assuring banks or investors of the viability of your business can be a daunting task; to be taken seriously as Amazon-style success requires convincing banks or investors of this fact. You will likely seek loans, source investors and crowdfunding until your hands cramp with frustration. Remember, however, that behind every successful physical business lies an impressive story of funding secured. Securing adequate capital will set your ship adrift over any humps in its path; should things go differently though, be ready for some financial wrangling as you try and right yourself again.
Hurdle Two: Cash Flow Management
Now that your funds have arrived, the steeplechase of Cash Flow Management awaits. Think of it like playing “keep the ball in the air”, where income meets expenditure to ensure more is coming in than going out. Balance the books carefully by keeping an eye on every dollar that enters or exits – high risk payment processor fees, payroll and taxes payments and investments made in technology must all be monitored closely to avoid financial disaster. Your first steps as an entrepreneur could easily lead you down a rabbit hole of debt and no way back. A surplus of cash will enable you to coast over this hurdle more smoothly; but should cash run short, the equivalent would be hitting full force into a water pit and collapsing. While an entrepreneurial splash may be exhilarating, it’s essential that you remain afloat so as to continue moving forward successfully.
Hurdle Three: Taxation and Regulation Compliance
Welcome to one of the biggest headaches for business owners – taxation and regulation compliance! Imagine playing hopscotch while treading carefully to avoid minefields! Here you must navigate your way through an intricate maze of taxes and business regulations – something like walking over hot coals! One mistake could put a serious dent in your wallet and could end up costing a great deal more than it costs in jail time. Sales tax, employment tax and possibly even unexpected ‘I didn’t even know it existed’ tax are just some of the expenses your business will have to contend with. Industry regulations, location requirements and sometimes unexpected rules all need to be considered if you want your venture to succeed without getting stuck along the way. One key way of successfully crossing these hurdles without incident? Being prepared! Know your stuff, stay updated and when in doubt consult an expert or two. So put on your thinking cap, roll up your sleeves, and take the leap – after all no one said running a brick and mortar business would be an effortless ride – or at least not like Mordor?
The Finish Line: Profitability and Growth
Reaching the Finish Line means reaching profitability and growth. Success does not simply consist of making money; instead it involves scaling up, exploring new opportunities, and maintaining ongoing success.
Navigating the financial hoop for your brick and mortar business can be a difficult feat, but with careful planning, savvy management, and perseverance you can overcome those hurdles to steer it toward fiscal success. So buckle up, get set, and let’s dive headfirst into financial fitness!
Image Credits: Mike Petrucci
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