Making sure the finance department keeps up with growth
Whilst many believe it’s a foregone conclusion that the rapid growth of successful start-up companies will translate into success to the tune of seven figures or more, there are numerous examples of swift development leading to reputational, financial and quality risks which could ultimately lead to the business going under. There are a number of measures you can take when it comes to your accounting team, however, to ensure this doesn’t happen to your business or start-up.
- Make sure your team is open-minded – it has never been more important to have a financial team that’s willing to consider new and different ideas. Assemble a group of accountants who don’t just assume one week will be exactly the same as the next. This can be achieved through filling the majority of roles internally, meaning that those in more senior roles are likely to have initially come to the company as junior employees. Encouraging teamwork through social events and team lunches is also a great way to ensure individuals in the team don’t become exhausted.
- Don’t just focus on the here and now – it’s important not to just take the short view to success. Think about what your company is likely to look like in two years time. It’s likely to be partially guesswork, as not all changes can be predicted, but it’s still an important exercise.
- Make sure you’re ready for any opportunity – even if your business plan is at the point of being self-funding, it’s worth generating extra capital not necessary for your cash flow. Whilst it may not be needed there and then, if an opportunity comes up where funds are needed quickly, you’ll be ready to act fast.
- Parallel roles keep you prepared for the future – adopt a parallel hierarchy rather than a vertical one. Splitting your team so that two people take shared responsibility for an area of your business not only means that your employees will have a greater sense of empowerment, but also ensures your business gains a level of future-proofing. If one person with an in-depth knowledge of what they do leaves, you still have another member of your team ready to pick things up whilst you find a replacement.