Starting a small business is every entrepreneur’s dream. A sense of ownership over your destiny and creating something that has a unique stamp is important and gratifying, no matter how hard you have to work to maintain it.
Of course, ensuring the long-term sustainability of your business venture is vital – no one wants the idea to die with them. But this is often easier said than done since keeping a business thriving is hard enough without having to worry about what happens if you decide to leave or pass away and how to make sure your children can take over the reins.
Develop a Plan
First things first, you should actually work to put together a business sustainability plan, which is something every successful organization does to help achieve its financial and societal goals. The plan isn’t simply about securing the fiscal health of your venture — although of course, that’s a big part of it — it’s also about outlining a more fleshed-out version of your mission and objectives, and the kind of role you want the business to take on in the community.
Access to Capital and Profitability
As the old saying goes, you need money to make money, and this most assuredly applies to run a well-staffed business. You can either self-finance, or take out a loan from the bank to get your business started, but what happens afterward?
Well, you will need to keep balanced accounts and ensure that your profitability isn’t too low so that it does not have an effect on your cash flow, which will inevitably increase stress throughout your organization. Furthermore, it will leave less to your estate loan beneficiaries, who will most likely need to access your estate after your passing.
If the profits are incredibly low, not only will your business close, your children or spouse will not inherit much of value except for a pile of debt. So exercise caution and make annual financial planning an important part of your businesses’ routine.
Conduct a Sustainability Audit
A sustainability audit is a tool through which you can compare your business practices with like-minded companies in the field. This internal process helps to condense specific initiatives for conserving resources, engaging employees, and giving back. It can take the form of a checklist and is fairly straightforward and simple, but the information it reveals can be earth-shattering in helping you to understand where the business is headed.
The areas covered in the audit include, but are not limited to topics of business governance, infrastructure, social impact on workers and the community at large, environmental impact in terms of resource conservation, measuring your operational costs versus income generated throughout the years, and so on.
While securing the future can feel like a difficult task since none of us can possibly know what will happen next, it’s important to ensure that your company can outlast you. Starting a company or even a small business takes a tremendous amount of blood, sweat, and tears, and it should leave a legacy within your family and the local community.