The Top Five Strategies for Working with Small Business Owners
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For workers and businesses alike, Atlanta is one of the hottest relocation destinations in the country – despite its relatively high cost of living and corporate tax rates. In keeping with its status as a bustling but complex market, I'm noticing an exciting trend among new small businesses here that has implications nationwide.
Small business owners cope with phases of development – from startup through growth and perhaps a sale – as they crop up, their last-minute efforts complicated by a lack of planning and due diligence and having their personal and business finances intertwined.
These days, however, many startup owners take a more strategic view of change management. Instead of waiting for broadly predictable events to unfold, they're acting early to ensure they're ready for whatever comes, whenever it comes.
I see this in the smart new ways startups are tackling the top five financial management concerns they face:
1. Raising capital
Small businesses are often capital-intensive, especially in the early years. This is a hard time in the life of a business, with owners often more concerned about securing capital – any capital – than worrying about obtaining the right kind of capital. The “underdog” stories we’ve all heard about entrepreneurs piling on credit-card debt to launch enterprises illustrate this point.
New business owners understand that determining optimal capital solutions calls for a deep analysis of their current assets, liabilities, and potential sources of financing to determine the best capital fit for the near- and long-term health of the business. Having this analysis on hand streamlines their capital-raising efforts, saving them time and money early on – and expensive headaches down the road.