Congratulations! At some point this year your company will celebrate its third year of operations. You have managed to reach a milestone that some of your competitors have not. So congratulations from Evans Business Advisory Service, Inc. a business management consulting firm whose target market is companies that generate ($100k-$8MM) in annual revenues.
In banking terminology, your company has graduated from being a “startup company” to being an “established company”. You are now ready to begin “working on the business and not in the business.” The first time I saw this phrase was in Michael Gerber’s book, The E Myth Revisited. Basically it means that now your efforts should be focused on managing the company and not so much on the daily routine things. Most of those financial institutions that would not give you the time of day three years ago because of the perceived risk of failure, are now ready to discuss loaning the company money. So, on this anniversary you should convert your business plan to a strategic plan for the next five years. In addition you should have on hand three years of financial statements. Now you can review the financial statements (balance sheet and profit & loss statement) in more detail rather than just filing them away. You should also have three years of federal income tax returns to document the company’s financial performance. Depending on your choice of incorporation, you should minutes form the annual stock holders meeting for the last three years.
If your management team needs help in organizing documentation that will allow you to make sound decisions for your company, or other time management questions, please call Evans Business Advisory Service or send us an e-mail and request an appointment.