3 Kinds of Paperwork Behind Every Business
Behind every successful business are employees with a diverse skill set. There are drafts of logos, posters, and video storyboards that never come to life. There are connections between different industries and partners. A lot goes on behind the scenes. Isolating one determining factor of success is difficult. However, it can be said that the technical aspects of running the business need to be in place.
There are three kinds of paperwork behind every business, regardless of the industry and market.
Business Plan
Before anything else, you must create your business plan. Your business plan can be used to attract investors or potential partners. If you do not intend to have investors, you can use it as a reference point. A business plan has all the information needed to understand what you have and what you are trying to do. It has your financial and branding strategies. It has your SWOT analysis, which allows you to understand your place in the market and improve accordingly. It has your short-term and long-term goals. Your business plan can be as simple or as elaborate as you like, there is no one way to create your project.
It is essential to have a business plan because it is transparent. When done right, you can identify your weaknesses and obstacles and have a countermeasure in place. The business plan forces you to sit down and look at your dreams realistically.
Licences and permits
After you have your business plan in place, start working on your licence and permit. The rules for both vary and depend on your location. Generally, you need to have a business licence which you can get at city hall and additional permits from your fire department or any similar governing body. If you are confused about the difference between a licence and a permit, they imply different things. A licence means you are qualified to operate. A permit means you are cleared by inspection, and mostly relates to the working conditions you have in place.
Go through the process and avoid problems with the government in the future. Businesses have been closed for lack of proper paperwork. It will be such a waste if you put your own money into growing your business only for it to be shut down by a technicality.
Financial statements
As you run your business, keep a meticulous record of your financial statements. They cover everything from your balance sheet, income statement, to cash flow statement. Your financial statements can help you make decisions based on how well your business is doing. For moves to branch out or drawback, financial statements paint a picture of what you can and cannot do. They are also used for attracting investors, banks and lending companies. The papers act as proof of your need for extending debt payments or taking out loans.
You can sort your financial statements by yourself, but it takes a lot of work. You have to type the kind of receipts you shred and the ones you keep in case of an investigation. You may opt to hire a CFO or use www.gsmaccountants.co.uk and hire an independent accountant.
When you have your papers in order, you don’t have to worry about your business being bothered by external investigations.