4 Steps to Building Your Business Foundation

 What is a business foundation?  I know many people who think starting a business is filling out all the appropriate paperwork, designing a marketing plan and doing the craft that they love to do. 

A business foundation is similar to building a house and having a strong foundation to build on.  All the floors to a house are unstable if your foundation is not built properly.  A marketing plan is part of the main floor, it is not the foundation.  Here are some “floor joists” to your foundation:

1. Have a clear vision.  A vision is your destination point.  Without this you won’t know what you are aiming for.  Why are you or have you started this business?  Where do you want to be in 3-5 years?  What will make your life and business ideal?
2. Know your passions and values.  How is your business formed around what your passions and values are?  If your business is structured around your values and passions you will be energetic and enjoy what you are doing, which is necessary for a sustainable business.
3. Have people who are part of your team that you can rely on and trust for necessary feedback and support to run your business efficiently and effectively.  My team members include my husband, sister, accountant, lawyer, coach, insurance person, printer, computer guy, website designer, graphic designer…and the list goes on.  I don’t assume I should know everything, nor am I good at everything, but I am good at picking people for my team that are trustworthy and capable.
4. Financial education. You must always know your money, inside and out. Understand how much money you need to make to break even, how to read your financial statement, how will you accept payment, what will be your invoice to customers, since it’s an actual contract.  I am a huge advocate of hiring a real accountant and not using a friend of a friend to do your book work.  A real accountant will be there if and when you get audited and will walk you through understanding your financials giving you expert advice on what is right for you.  A good accountant will save you more money in the long run then you will ever pay them.

Take the time to build a strong foundation! Business’s that are strong will be able to withstand the toughest times.