I have never been one to rely on gut feelings or emotions to drive my decisions. Having said that, it is my view that 2018 will be a year that brings with it many opportunities to succeed. Success being an ambiguous word, in turn this means different things to different people. This is not limited to only things I experience from my own perspective, but also when viewed from a much wider perspective. As with everything in life, barriers will exist and my optimism is based on looking back to 2017 and seeing how groups of people, not individuals, have managed to overcome great obstacles. In business, in life, in politics, music, art, etc., etc., etc. As a nation we are learning something I learned as a service member many years back: a team can and will accomplish so much more than any one individual. 2018 will be a year measured by how we all come together in pursuit of our 'happiness', however defined.
Keep Calm in the Effort
During a recent 100+ Mile bike ride, I was reminded of a mantra which not only holds true for endurance events but in business as well: Keep Calm in the Effort.
What does this mean? When engaging in an endurance event, whether a marathon or a long-distance bike ride or both (add a swim for a triathlon, if you’re feeling courageous), the most important thing to remember, is not to exhaust yourself early on. It then becomes a conscious task to remain calm while pushing yourself, breathing properly to provide the oxygen your body needs, maintaining your heart rate within a specified range and not allowing yourself to exceed those parameters. In fact, creating a situation where you replenish your body’s stores of energy even as you continue to demand effort from it.
From a business perspective, managing and growing a business is also an endurance “sport”. Burning out is a very real consequence and something to be aware of and to protect from. Having a plan in place with a clear and achievable goal becomes a necessity. You can then focus on the long-term goal and experience all the noise melt into the background. This focus will cause you to be that rock that your clients and/or employees rely upon. You can see yourself and your team through a myriad of fires, surprises, snags, or whatever you call them by keeping a steady attitude.
Either will require metrics and a way to accurately measure your performance (whether we’re talking of a heart monitor or a budget projection.), a focus on certain indicators or milestones, and making and sticking to a plan. Knowing when to toss that plan by the wayside and take a risk that will results in a positive outcome will come with experience. Yet the goal and plans remain so you may quickly revert to the steady pace and see yourself through that finish line. And finally, above all things remember the most important task: BREATHE.
DIY or Hire an Accountant?
In a seemingly bottomless app store where there is an app for just about anything and everything under the sun, it would be easy as a small business owner to either pick the least costly app or most user friendly one and plunge headlong into the bookkeeping abyss. After all, what is a few dollars compared to the hundreds or thousands you would save from hiring a CPA?
Short answer would be: if you know what you are doing AND you have time available, then by all means, take this challenge on. After all, “if you want things done right, …” Yes, sure, you could walk your own dog and groom him/her yourself, and cook your own food, and wash your own car, and pump your own gas (NJ I’m looking at you), and design and tailor your own clothes, and launder and press them, and change your own oil, and rotate your own tires, etc. You get the point. Certainly, doing things yourself will no doubt help you save money.
Unfortunately, seldom is life as a business owner that simple. Wearing a dozen hats, permanently scrounging for time and never being fully done with your work, are all par for the course. Trying to find enough time to not just mind your books and finances, but first to understand how to use the software and then to learn accounting concepts (which for the sake of time, sometimes does get dropped) becomes increasingly difficult as your business grows and grows, along with your other responsibilities. Often, however, the drive to save money ends up being counterproductive. Doing things yourself will also take up your time and as a result will restrict your ability to generate sales and/or focus more on your business’s success.
Hiring a knowledgeable and experienced professional, one that makes it a point to be up to date on the latest changes (in accounting, tax, and other pertinent topics), is an invaluable option. Not only does it free up precious time so as a business owner you can focus on what drove you to open your business in the first place, but it also ensures that the work that needs done is being done timely and accurately. Additionally, you will have an expert that can help guide your business, navigate obstacles and provide you the insight that you need to make those decisions and develop the strategy that will help your business thrive and be that much more successful.
Depending on the stage of life of your business, hiring a CPA may not always be possible. However, having someone in your network, a trusted resource, who can help with the odd question here and there or can give some guidance when needed can prove to be a smart alternative. You will build confidence on that resource, strengthen that professional relationship, and when ready it will be a smooth transition into a successful partnership. We seek experts in most aspects of our lives, does something as important as the financial health of your business not deserve the same?
Are You Ready for Entrepreneurship?
Is it the right time to open a business? Strike out on your own? Leave the rat race for greener pastures (ignore the mixed metaphors)? Open a business?
I don’t think that any of the questions above or any version of these themes can be answered in the absolute. In other words, there is no such thing as the “perfect time”. There are never the perfect set of circumstances or any particular set of markers that can let you know when exactly you should go ahead follow your dreams and desires. These dreams, how we pursue them, what we need to accomplish them and who will come with us on that journey are variables that will be different from one person to another, from one business to another, from one industry or profession to another. So how do we know when the best time for us is?
This is an interesting question because it requires a degree of introspection that not all of us possess (I admit, at times this is me). Certainly, there are administrative steps to take prior (market research, business plans, prototyping, setting up ownership structures, etc.), but that’s not what this post is about. More to the point, how can we know exactly when we are mentally prepared to take the plunge? To recall a theme in the movie City Slickers, “that’s what you have to figure out”. I’m not being difficult here, but what I mean to say is that this is different for each of us and as such we need to look at our own circumstances to arrive at that answer. We need to discuss this with our circle of friends, our families, our significant others, mentors, running or gym buddies, etc. In short, those people in our lives whose thoughts and advice we value. Having this conversation or conversations will help us identify whether it makes sense, to what degree we’ve done our homework, the level of support we will receive, do we have a marketable idea, etc. All issues that can help us hone in on that ultimate answer: Yes, it’s time or Nope, not yet.
Perhaps the one thing that all of us could have in common in this search would be the desire to take that risk. Once we’ve answered the question “Am I Ready?”, it then follows: take the risk, do it, execute, go-go-go. Ultimately, it’s not about wondering whether it’s possible, rather to execute and make it reality. We may succeed, we may create a business that won’t get off the ground, however we never fail. Every decision, every move made goes towards experience and it becomes a lesson of what or what not to do. When we realize this, we know that failure does not exist and it empowers us to be much more open to that risk. As the quote attributed to Thomas Edison says “I have not failed 1,000 times. I have found 1,000 ways how not to make a light bulb; I only needed to find one way to make It work”.