Key Harrington Barnes, PC

May 2016 Archives

Advice to help keep the small business financially fit

Most Texas entrepreneurs are no doubt aware that it takes a lot of effort to keep their business running smoothly. From time to time, they might benefit by taking a good look at the company's finances. Most successful companies have an effective business plan to keep them on track. As a company's objectives and needs change, however, the plan might need to be revised to reflect those changes. Besides helping the company to achieve its goals, a business plan will likely be necessary when debt or equity financing is sought.

The most important elements of a successful business plan

Small business owners can focus on the goals that they set for their companies with a well thought-out plan. However, Texas entrepreneurs might be surprised that only 33 percent of small business owners have a written plan, according to a Wells Fargo survey. There are a few vital elements that a business plan should have.

Business formation basics

The early stages of starting a new business in Texas are the most fraught with danger from a statistical standpoint. The reason for this, according to some observers, is the lack of foresight in answering a few questions with enough detail. Instead of envisioning only the end product, companies can be more successful when problems along the way to success are anticipated and planned for upfront. These problems include the need for backup funding sources and the culture shock many new owners feel when realizing the work and dedication required for success.

Mistakes to avoid when writing a business plan

Texas entrepreneurs who are considering starting a new venture should create a business plan, but they must also watch for pitfalls when writing it. New business owners often overlook important aspects of running a company such as paying attention to cash flow issues. A company that is doing well financially on paper still may be unable to pay its bills if it has no other source of cash and customers are late in paying invoices.