Five things that give business owners sleepless nights

Nov 5, 2021 | Business planning

Once the excitement and novelty of founding a business subsides, there are some age-old problems that may start to gnaw away at any business owner. Sure, the freedom and flexibility make it all worthwhile, but how can you cut down on those sleepless nights?

Some issues fall under sales and marketing – “How can I get more customers?”. Or HR – “My staff are driving me nuts!”. 

We’ll leave those to be solved by the relevant specialists. But plenty concern the domain of finance and accounting. Here are five of the most common worries that we come across, and ways to eventually stop your mind racing at 2am.

Cashflow – How do I keep the lights on?

Cashflow is one of the biggest concerns to businesses of any size, and sometimes it can be a case of more money, more problems. Quite simply, if you run out of cash you can’t operate. 

A key first step is knowing your numbers: what’s coming in, what’s going out and, crucially, when? Some cloud accounting software such as Xero, if you haven’t already got it, will provide you with a helpful dashboard

If you are suffering persistent problems, a funding solution may be the answer to provide you with the working capital you need. 

Until 30 June 2022, the coronavirus recovery loan scheme is a good option to look at, with dozens of lenders offering Government-backed finance.

HMRC investigations – Fearing the tax man

Let’s face it, you don’t need to own a business to fear crossing the tax man. And with VAT, PAYE, corporation tax and many more all thrown into the mix, there are plenty of ways to get things wrong. 

HMRC will investigate if they suspect something is amiss, so rule number one is to keep good records and make your filings on time.

As with cashflow, accounting software will really help with this, and working with an accountant not only assists in complying with the rules, but also sends out a positive signal to HMRC that you take your finances seriously.

Revenue – Are all your eggs in one basket?

Generating revenue, including finding clients or customers and doing the work, can present different worries at different stages of your business life-cycle. 

At the beginning, simply finding enough demand may be a concern, but once this problem is solved others can present themselves.

One revenue issue that many businesses face at one point or another is becoming over-reliant on one customer. 

Winning that big contract can feel great at first, but before long the thought of the black hole caused by losing them can start to become all-encompassing. 

Nurturing a diverse client base takes time and effort, but is worth it to diminish this risk, and the worry that comes with it.

Profitability – Are you actually making any money?

As they once said on Dragon’s Den: “Turnover is vanity, profit is sanity”. And as your business becomes more complex, in turn it becomes increasingly important to apply this principle. 

Fully understanding the costs and the deployment of resources (including time) to deliver your goods or services, and pricing these in along with a margin is crucial to long-term success.

If you are having trouble getting this right and it is keeping you up at night, why not book a chat with us so we can help you get your numbers adding up?

Administration – The paperwork is piling up

Keeping on top of the paperwork can be a hassle and not what you got into business for. 

As we have covered, record-keeping and getting to grips with the numbers is a key way of managing many of the other issues that business owners face.

If it is all getting too much and your time would be better spent elsewhere, why not outsource as much of your administration as possible? 

Some people swear by it, recognising that they can deliver more value to their business in other ways. Because of the compliance aspect, accounting and bookkeeping can be one of the most effective things to outsource.

Get a better night’s sleep!

You are not alone if any of these issues are giving you sleepless nights, and they need not last forever. If you would like help addressing them sooner rather than later, please get in touch and find out how we can help.

Ready to go? We’re excited to hear from you.

Let’s get started, as soon as you’re ready. We’re always up for a chat about how we can support you and your business.

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