If you have recently launched your startup from home while trying to balance the burden of a new business with the responsibility of being a good mom, you are not alone. The idea of mompreneurship is becoming more and more popular in the twenty-first century due to the ability to run a business from the comfort of your own home and the opportunity to fit your work life around your family life. You may be designing bespoke greetings cards, knitting and selling kids clothes or providing accountancy services to SMEs. Whatever it is that you have chosen to specialize in, you have relinquished the luxury of full-time employment, a steady wage and promotion prospects for the opportunity to strike out alone.
However, what happens when your venture really takes off to become a lucrative money making empire? No one tells you what to expect when you see the sales stacking up, the revenue increasing and your cash flow buoyant. How do you manage your money and what are you going to do with your ever-increasing profits? Take a look at how you can ensure that you spend your business cash wisely.
Although you may have started out with a small, nuanced and restrictive business vision, this may now need rethinking. If your turnover is going through the roof and your business is becoming a market leader, you will need to take a step back and assess the journey that you are taking in the world of mompreneurship.
Before you spend or do anything, you need to employ the services of a high-quality accountant to help you decide how best to spend your company’s money. They will help you construct a five-year business plan. This will take stock of where you are now and attempt to secure the foundations of your business while keeping an eye on expansion. This will be closely tied in with your business vision. Do you need physical stores? Could you do with moving to a large office? Once a business becomes successful and large, working from home may no longer be an option.
Alongside your accountant, you can work out how much to budget for new office space, software, computers and employees. If you have grand plans for your startup, you may want to alter your business vision a tad and aim big. There’s nothing wrong with striving for a ten-store chain of shops or a 50% market share of the business. You may even want to take a foray on the international stage. If you have a product or service that you think will translate successfully in overseas territories, you could explore trialling your business abroad. If you are nervous about taking the plunge, why not carry out some market research first to see if your expansion plans are viable.
As you grow, you will inevitably need to take on staff to help you with the continued successful running of the business. New roles may emerge, and you cannot be expected to shoulder the burden of them all. While you don’t mind putting a financial hat on, working in HR, doing some of the admin and making a good cup of tea, the thought of constructing an international online marketing campaign may scare you to death. The Proactive Broker Network suggests that you consider using some of your profits to invest in the development and well-being of your staff. Pay an above market rate wage, implement a bonus structure and have a solid pension plan available to all employees. By investing in your staff, you will be able to retain the highest caliber of employee, maintain a high morale within your team and have a cohesive and happy ethos in the office.
Having the luxury of a buoyant cash flow means you could have your pick of premises. You won’t have to make do with a dive of an office in the least salubrious part of town. If your business relies on footfall, you can select a premises in the center of town in the thick of things. You may be able to afford a high street position, a large spacious office and an office space in which your staff team are happy and pleased to work in.
Invest in some decent ergonomically designed furniture, add a smattering of greenery to the office and set up that all-important chill out zone. Your staff will appreciate a chance to relax, kick back with a games console and then return to their duties within the workplace refreshed and reinvigorated. Remember that a happy employee is a productive employee.
If you have a swollen business wallet, you are in the fortunate position of being able to have your pick of the latest industry-specific software that you might want to exploit. In the twenty-first century, businesses are becoming more reliant on software than ever before. Technology enables companies to be more efficient, save money and become more successful. Not investing some of your business profits into technology would be foolish.
You may want to splash the cash on some new hardware, laptops, communications software or payroll software. Consider what your rivals are using, take advantage of free trials and analyze how each piece of kit can benefit your business. Just because you have the cash to spend doesn’t mean you should waste it on needless equipment and software that is expensive yet never gets used. Before you make a purchase, make a list of the inefficiencies that you need to overcome and only buy the software and equipment that will help you achieve this aim.
Running a successful business should be easier than running a struggling one. And it is. However, there are still pressures and stresses in ensuring that you are spending your money wisely, growing your capabilities and expanding in the right way. Follow this advice and your mompreneur status could go from a work from home startup to a money-making empire.