We already discussed the importance of documentation in an earlier post. Assuming you have already made steps to make sure that you document business processes (and avoid a huge headache later) let’s take this a step further. For the small business owner to prepare for business growth you need to make sure you are managing what you already have. In other words, be disciplined in accurate and maintained record-keeping. This is the foundation for sustained business growth as these records will guide your future decisions and actions.
Think about these questions when deciding which records you should focus on maintaining.
· Are they mandatory for state/federal law, lenders, insurers?
· Are they needed to keep up operations if you are absent?
· Are they necessary for financial management?
· Do they protect the business?
· Do they affect sales opportunities?
A business owner cannot build on their first years in business without necessary records that attract lenders and investors.