Team Players

Remember the old saying “it takes a village”? Well that can be said about a business as well. There will be many members on a team that makes the business run successfully. Let’s take a look at who they are and what part they play.

• Accountants

• Financial advisors

• Bankers

• Suppliers

• Front line workers

• Managers

• Distribution

Since this is primarily focused for start ups we will work down the list in my priority of these team players for a start up.

Accountants: as you’re starting your business there are several decisions to make that will change how your taxes are reported and how much your financial obligation is for taxes.

1. How is your business formed?

2. Do you, or will you have employees?

3. How will your employees be compensated?

4. How will you compensate yourself?

5. Are your goods or services excluded from sales tax?

6. What expenses are deductible from your business revenue?

Tax law is a complicated beast and there are changes made every year that could have implications on you and your business. Having a partner that keeps you abreast of changes and the most cost effective way to report is crucial.

Bankers: I’m going to assume that you are starting your business with the goal of making money, at least at some point.

1. What is the cost to borrow this money for my start up/expansion?

2. What fees or minimums do I need to keep in my account?

3. What payment solutions are available to me?

4. How am I protected from fraud?

5. What benefits does this account have?

6. What abilities do I have to manage my account remotely?

All of these are important questions to consider when establishing your business account relationship with your bank and can effect the speed of you funds availability, time you spend managing your account, and your bottom line. Many banks offer similar services, and have no-fee options for accounts, but finding a banker that you trust and is willing to provide you proactive solutions to your cash flow management is crucial.

Front-Line Workers and Managers: These are the people that your customers will be interacting with on a daily basis and determine potential clients’ perception of your company.

1. Am I the one making sales and handling customer service?

2. What is my standard of professionalism?

3. What is my organizational hierarchy?

4. What authority do my employees have to take action?

Just like with your bank partner you need to have employees that you trust. You can have the greatest product or the best service, but if your employees don’t present the way that you want them to or don’t have the power to make changes it can be detrimental to your business.

Suppliers and Distributors: What goes out needs to come in from somewhere.

1. What shocks are my suppliers susceptible to?

2. What are the payment terms for my orders? Net 30, PIA/CBD, etc

3. Does their green initiative align with mine?

4. How long is the procurement process?

5. Am I selling wholesale in bulk or to individuals?

6. What is the delivery timeframe?

7. Are the items shipped fragile or perishable?

Whether you are making leather belts in house, putting together custom PCs, or providing financial advice through software, you will have someone that you depend on getting something from prior to selling to clients. If your clients can order remotely, you will need to work out how to get your goods/services to clients safely and in a reasonable time.

Financial Advisors: Is your plan to just work until the day you die? If not you will need create a plan that gets you enough money and assets to draw from to stop working.

1. What am I doing with my business when I am ready to call it quits?

2. How much money do I need to meet my personal expenses?

3. How much can I afford to save?

4. How long do I have to work before I can retire or step away?

All of these are important questions that you need to ask. The thing about planning for retirement is that it is always easier to make a plan early and automate it. Compounding interest is a powerful tool and the longer you hold off planning for retirement, the longer you will have to wait or the more you would have to save to get the same number in the end.

Remember that there are a lot of moving peices in any business and things can become lost in the shuffle when you are trying to do everything on your own. Tom Brady didn’t get 7 Super Bowl rings on the field by himself. Build a great team around you and trust the advice you’re given. Contact me for a consultation to see how to start, grow, or improve your business.