Any small business owner will tell you that sometimes running the business can get in the way of growing the business. However, there are a few administrative tasks you should put high on your list of priorities. Performing them will leave you a better sense of control of your business, a better idea of how it’s doing, and help you grow that bottom line.
Write (or Update) Job Descriptions
You do have a formal description of the role of every employee in your company, right? Including any owners who are also managers or employees? If not, this is something to start on right now. They help new and existing employees understand their responsibilities and management’s expectations. Job descriptions provide a paper trail if an employee is fired for sub-par performance, and if the IRS or some other taxing authority should audit the company and question owners’ compensation.
Inventory Fixed Assets
Physically tag and record identification numbers for all fixed assets. When you compare the generated list to the fixed assets ledger in your accounting records, you may discover missing or damaged items, or perhaps realize that you have equipment that has long since become obsolete and could be sold. An accurate inventory of fixed assets is also a help in making sure you are paying the right amount of business taxes and are carrying the right amount of insurance.
Write Off Uncollectible Accounts and Obsolete Equipment
There are always that client or two who simply won’t pay, and when you inventory your assets you may find broken or outright missing equipment that can’t be converted into cash. Write those items off now. The result will be a cleaner balance sheet as you move into the future.
Evaluate Your Business Insurance Coverage
The types of coverage that worked in the past may not be right for today. Property values may have changed, assets may have been added or retired, or risks may have shifted or emerged. You may find yourself under-insured (in which case you’re courting disaster) or over-insured (in which case you may be wasting money).
Renegotiate Your Lease
Given the struggles that the real estate market has gone through over the past half-decade, you may be overpaying rent if you signed your lease five (or more) years ago. Research what comparable space is renting for at similar locations to where you are presently based. If your current landlord isn’t willing to renegotiate the lease terms, consider switching to another location with lower rent, more usable space, or superior amenities. While the real estate market is tightening in some areas, there are even more where it’s still a renter’s market.
Obtain a Business Appraisal
Knowing what your business is worth helps guide short- and long-term business strategy decisions, such as buying out minority shareholders and modifying insurance coverage. If you are seeking to establish lines of credits, having an accurate appraisal of your business is a must.
Consult With Professional Advisors
GPL’s Dwayne Bishop can analyze the structure of your business and help you customize a more comprehensive list of administrative tasks to make your business leaner, stronger, and more organized. There are also specialists in your particular industry and lawyers who know the latest developments that affect your local market and niche who can be great resources for you.