Finance Solution

Are your finance solutions scalable with your start-up?

What is a scalable start-up?

A scalable start-up involves a pioneering idea & pursuits for a scalable & repeatable business model that will result in a high-growth, profitable company.

Methods of measuring the scalability of a start-up:

A scalable business can be accounted for by measuring whether your fixed costs are high or low, if you are able to substantially increase more customers without rising your costs proportionally, then the business model can be termed as scalable & becomes more profitable as it grows. Other ways to evaluate the scalability level of your start-up:

  • Customer Retention
  • Transition Rate
  • Development or expansion Rate
  • Gross Margins
  • CPA (Cost Per Acquisition)
  • Revenue Rate
  • Expense Rate
  • Break-even Rate
  • The lifetime value of a consumer

 

Possible ways of financing a start-up:

  • Try having a good Financing Model that may help in funding your small business
  • Begin with personal financing (if possible) or probably credit lines
  • Reach out to family & friends
  • Apply for a business loan
  • Try to pitch in an angel investor
  • Try to get the attention of a venture capitalist
  • Join a Star-tup Incubator (if possible)

 

What makes a business scalable?

Not everyone wants to set up a large or highly scalable business. Most small companies currently are small to medium family businesses, which can be very successful, rewarding, & small by structure. But working towards scalability is a vital strategy towards growth.

The basic definition for a scalable business would be an organization that has the capability & elasticity to comply with increases in demand & multiply profits with marginal & anticipated incremental cost. In simple words, it’s easy-going to expand your business rapidly when an opportunity arises, without radically escalating expenses.

Below are listed some examples of a scalable business:

  • Launching software — a timeless illustration of a scalable business.
  • E-commerce — any product or service offered via the internet is scalable
  • Duplicated or reproduced products — sold through online platforms
  • Introducing a Social media platform — Facebook, Twitter, Instagram

 

Is Your Finance Solution Prepared to Scale with Your Start-up?

Considering your start-up is progressing positively, & there is a requirement to scale promptly to continue to stay updated with innovation & client demands. This is an ultimate scenario for any businessperson, but rapid success involves a series of staffing & other financial challenges

Pursuing excellence in in-house talent consumes both time & effort, & the accounting department is often considered a priority. As you’re looking to onboard salespeople, customer representatives, & other front-line staff, accountants are usually replaced with software. Most of the time the current staff has no knowledge or training on the usage of accounting software. This can convert eventually to a major problem.

Some of the common issues seen by entrepreneurs unprepared for rapid expansion:

  • Increases in accounting errors
  • Decrease in company/accounting morale due to overwork
  • Unforeseen costs & errors related to your current accounting solution used by your company

 

Outsourcing is a brilliant solution for a start-up.

When you’ve just commenced on a small start-up, it may get a little difficult in hiring urgently required staff. Even if you do hire in-house talent, your finances may just burn out & the company may get unsustainable.

Recruiting staff is a strenuous & time-consuming process. It can get hard to get a true measure of someone’s capabilities if you don’t have a lot of background in finance.

As you scale, you’ll have to constantly consume effort on this process, including more salary & benefits to your overhead, & if one of those people you hire does not sustain with your company, you have then just wasted time & effort on onboarding.

These common issues in attempting to source in-house talent are often what brings people to an outsourcing firm like Brooks Management Consultancies, your one-stop shop for outsourcing accountants & financial consultants.

Benefits of outsourcing for start-ups:

  • Outsourced accounting services provide entrepreneurs with more time to focus on their business
  • Applying best practices from outsourced accounting makes accounting easier
  • Advice from their outsourced accountants eventually results in increased profits
  • Financial management & forecasting is taken care of
  • Regular cash flow management. A professional accounting firm will provide you presentations & attend business meetings to assist in the procurement of more funds from investors & lenders (wherever required)
  • Implementation of proper or new accounting & reporting systems
  • Confront financial challenges, such as poor cash flow, elevated business overheads, incompetence to raise capital, debt management, etc.

 

How can we help?

At Brooks Management Consultancies we are ready to help scale your start-up hassle-free. Our consultants will help you take the right calculated decisions that will assist your business scale towards growth.

We will help you scale successfully by:

  • Guaranteeing that your financial foundation is ready & sturdy
  • Our tax agents will establish the most cost-economical tax structure
  • Helping to acquire finance or loans, if needed
  • Performing financial forecasts & financial risk assessment
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