Equity and Strategy
For many small or mid-sized business owners, it’s possible at times to lose sight of the everyday reasons we have gone into business in the first place. What have been your reasons? To have more time with family? Working independently? Pursue your passion? And yet many times over and over I have seen business owners that don’t get to spend the time they need with family, either because they are too busy or have taken on too much. Have noticed others who started to work independently and gotten lost in their work, only to neglect their accountancy practices and business controls. Have even witnessed situations where others have let their passions consume them, only to be burnt out in the long run through becoming overwhelmed.
When running a business, you as the owner have a great amount of responsibility. A business should be set up to be sold at any point in time for an outrageous price, because anything is possible, right? An owner I worked for once described it to me this way once when selling his very successful 4-star hotel: “If someone came by and offered to give you $1 Million dollars for your car, you couldn’t pass it up; they made me an offer I couldn’t refuse.” Every organization should have strong accounting policies and practices in place for this very reason: to fully understand and be able to share their equitability. It seems that many owners also ignore this rule and keep two sets of books which in my view represents a lack of transparency. While there are multiple standpoints on this issue, as some CPAs might chime in, the ultimate point is simple: clarity and transparency in daily accounting and bookkeeping practices are important to potential investors.
If equity on the balance sheet represents your business’ net worth, then how much equity do you really have? Is it possible we could find a way for you to get more money into your business for potential capital development? Are there positions you have been waiting to hire for to free up some of your own time? Have you reached roadblocks in some of the problems faced by your organization that need to be overcome? As your business advisor, it is my duty and responsibility to speak candidly with you about the potential for growth and maintaining an abundance mindset in your strategic thinking in day to day operations. Let me know if I can help you today.