3 CRITICAL ANSWERS FOR ENTREPRENEURS READY TO SCALE OVER $1M
ARI BAUM CFP®
AS YOU GROW YOUR BUSINESS TO $1 MILLION AND BEYOND, THE TEAMS AND SYSTEMS THAT GOT YOU TO YOUR MILLION-DOLLAR GOAL AREN’T GOING TO BE ENOUGH TO GET YOU TO YOUR NEXT GOAL.
You’ve probably read a number of books on taxes and how to reduce them. You’re already aware of many tax-saving strategies, such as maxing out retirement and HSA accounts, taking all the deductions you’re entitled to, and hiring your children.
Instead of stressing over taxes and trying to figure out ways to save on them, you get the most “bang for your buck” from working on your business and generating strategies for success. In order to scale, you might need some advice to help you achieve your next big revenue goal.
SCALING QUESTION #1
Are your taxes too high relative to revenue?
The past few years have revealed how little tax billionaires pay, which has made quite a few people angry! Yet, you provide jobs for people in your community and contribute to the economy, so there’s no reason for you to pay too much in taxes either.
Every time you pay your quarterly estimates you might be wondering if you’re paying too much. Is it worth the money to hire an employee who could potentially save you more on taxes or to spend your own valuable time on something that isn’t a key strength of yours? Being able to look at the big picture will help you determine whether or not you’re spending too much money given your revenue.
SCALING QUESTION #2
Realistically, what is your capacity for growth?
When you look at your numbers, do they tell you that you’re ready to scale? You might need to build out some infrastructure in terms of systems. As an example, if your financial operations still involve spreadsheets, you’ve got some work to do if you want to scale!
Be objective about what kind of growth you can sustain with your current team and operations. What needs to change as you ascend to the next peak in your business?
SCALING QUESTION #3
Will your current team help you achieve the growth you want?
Do your current employees have some slack in their day, which enables them to take on new responsibilities, or are they already at max capacity? If the latter, you could be headed for burnout.
If you are spending too much time on administrative work, trying to squeeze out a few more drops from tax and expense savings, you’re most likely wasting money. But you’re also wasting valuable time that would be better served by you creating new strategies for growth, and all the things that only you as the business owner can do.
SCALE YOUR NEXT PEAK WITH THE RIGHT TOOLS AND TEAMS
As an entrepreneur, you’ve already reached a significant revenue peak, but you don’t want to stop there. You’ve got goals for growing your business, and you know you’ll need the right tools and teamwork to get there. You also know you’ve got to ensure your financials are ready for your business to grow.
As you’re planning your growth to reach the next revenue peak, you might wonder if you have the full team you need to take you higher.
You’ve taken the first smart step toward scaling your business past the $1 million mark. Now it’s time to take the next one by enlisting a financial professional who is on your side and capable of advising your growth-oriented business.
The content is developed from sources believed to be providing accurate information and is not intended to be a substitute for specific individualized tax advice. Discuss your specific tax situation with a qualified tax professional. Investing involves risk including the potential loss of principal. Consult your financial professional before making any investment decision.
Ari Baum, CFP® is the founder and CEO of Endurance Wealth Partners. With over 25 years of experience in the Financial Services industry, he brings his in-depth experience to Conceive, Believe, Achieve, for his clients.
Securities and Advisory services offered through Prospera Financial Services Inc. Member FINRA/SIPC.
Brokerage and Advisory accounts carried by Wells Fargo Clearing Services, LLC.
