Tuesday 23 April 2013
Not every new business founder can be a whizz with the finances - it just isn't some people's area of expertise.
An absence of advanced numeracy and money management skills should not hold people back from becoming self-employed however - there are various ways around this problem.
The most important thing for new enterprises is that there is a good product or service to sell, at a realistic price-point.
Also, the start-up founder or their employees need to be blessed with the ability to sell - attracting and retaining customers is what will make the company thrive.
If the company is a failure in terms of having a unique selling proposition, or bringing this to the market, a lack of financial skills will be a secondary issue.
Small firms can always bring in money expertise, either by hiring somebody with financial knowledge and experience, or by using technology solutions.
The first approach is likely to be the more expensive, but if firms have definite growth ambitions they need to recruit a strong workforce.
Investing in IT solutions - such as accountancy software and other financial management solutions - can help small company leaders perform many cost management tasks themselves.
Finance programs can guide business leaders and employees through the required processes, and keep all required records, meaning they can get on with running their company and making a profit.
Posted by Steve Williams