5 Tips For Scaling Your Business Higher

The key to securing dramatic growth in your business is to have an effective strategy. This includes planning for growth, setting realistic budget breakdowns, and implementing turnaround management practices when necessary. Turnaround management involves assessing and making comprehensive changes to revitalize a company and return it to profitability after a period of stagnation or decline. This is crucial as it prepares your business to handle rapid growth without running out of cash in its runway.

Formally defined, scalability means your business can handle rapid growth without going out of cash. It involves creating a client avatar, establishing core values and internal processes, and optimizing workflows.

Hire The Right People

Hiring the right people is the most important thing you can do to grow your business. A good employee will add value to the company, help you attract customers and build long-term relationships.

On the other hand, hiring the wrong person can be disastrous. They may require frequent follow-ups, retraining and disciplinary action, which takes away your productivity as a founder.

That is why it is crucial to take the time to find candidates that truly fit your company culture. Taking a little extra time over the recruitment process, particularly for senior roles, doesn't put off serious applicants. Instead, it shows you care about finding the perfect candidate to take your business to the next level. Here are some tips on how to do just that.

Build A Great Team

Whether scaling up from a solo operation to a team of four or adding 20 new employees, it takes a strong, well-managed squad to live up to your customer promises at scale. That means investing in team-building.

Start by identifying each employee's strengths through the Clifton Strengths assessment. Then you should match their strengths to jobs within your organization. This will help them feel like their work matters and that they have a purpose that aligns with the company's goals.

Managers are critical for this; the manager determines 70 percent of the variance in team engagement. Make sure your managers have time on their calendars to meet with each employee regularly. This can be as simple as scheduling 30 minutes each week to chat about how best to scale up successfully.

Create A Customer-Focused Culture

Many businesses focus on customer service and build loyalty and retention by delivering great experiences. However, creating a customer-focused culture goes beyond investing in high-quality customer support software. It is an entire shift in how a business operates and treats its customers.

A group of CEOs, including Patrick James of First Brands, says a truly customer-focused culture means every employee, from the CEO down, understands how their work affects the customer experience. Companies should consider implementing a monthly or bimonthly all-company email that includes key CX metrics and recent performance. They should also provide tools like office collaboration software to allow employees to discuss their work and how it affects customers.

Additionally, they should encourage non-customer-facing employees to listen and analyze customer calls to understand their needs better. This helps all employees feel more customer-focused and motivated to deliver on that promise.

Focus On Customer Service

Scaling a business involves increasing revenue and ensuring your systems and processes are ready for the additional work. For example, you may need to hire more staff or invest in new technology.

As you scale, it is important to prioritize customer service. This will help you create customer loyalty and increase repeat sales. You can do this by offering 24/7 support services, improving customer experience, and providing quality products.

Another way to focus on customer service is by creating a strong and trustworthy team. This will allow you to delegate tasks easily and provide the necessary support. It will also help you build a sustainable business without your presence. This is especially true in a service-based industry.

Invest In Technology

If you are considering growing your business, ensuring your current processes and systems can handle the growth is important. Investing in new technology to help you grow your business is also a good idea.

For example, using a communication platform can make it easier for your team to work from home, saving you money on office space and making it easier for your team to connect with customers. However, it's important not to invest in technology just for the sake of it.

Scaling your business to new heights can be a challenging but rewarding process. With careful planning and strategic execution, you can create a profitable and scalable company to further success levels.

What To Do If Your Business Owes Back Taxes

The weight of unpaid taxes can feel overwhelming for any business owner. Whether due to unforeseen circumstances, miscalculations, or simply a lack of understanding of tax regulations, finding yourself in debt to the IRS can be stressful and confusing. Knowing what steps to take and how to navigate the IRS bureaucracy is crucial to resolving your IRS tax problems and getting your business back on track. 

Understanding Why Businesses Owe Back Taxes 

There are several reasons why businesses may end up owing back taxes: 

• Miscalculations: Even small errors in bookkeeping or payroll calculations can lead to discrepancies in your tax filings. Hiring a qualified accountant can help ensure accurate tax preparation and minimize the risk of errors. 

• Missed Deadlines: Failing to file tax returns or make estimated tax payments on time can result in penalties and interest accruing on the unpaid balance. Staying organized and setting reminders for tax deadlines is essential. 

• Unforeseen Expenses: Unexpected business fluctuations or economic downturns might make it difficult to meet tax obligations. Exploring payment options with the IRS can help manage the debt and avoid further penalties. 

• Changes In Business Structure: Transitioning your business from a sole proprietorship to an LLC or corporation can impact tax filing requirements. Consulting with a tax professional during such changes can ensure proper tax compliance. 

The Consequences Of Unpaid Taxes: More Than Just Late Fees 

Ignoring your tax debt is not an option. The IRS has various avenues to collect unpaid taxes, and the consequences of inaction can be severe: 

• Penalties And Interest: Failing to file or pay taxes on time will result in penalties and interest charges accruing on the outstanding balance. These fees can quickly add up and significantly increase your overall tax debt. 

• Wage Garnishments: If you fail to respond to IRS attempts to collect the debt, they have the authority to garnish wages and bank accounts to recoup the owed amount. This can disrupt your cash flow and make it difficult to operate your business. 

• Tax Liens: The IRS can place a lien on your business assets, hindering your ability to sell or refinance property. This can significantly limit your financial flexibility. 

• Federal Tax Liens: In extreme cases, the IRS can file a federal tax lien, which becomes public record and can damage your business credit rating. This can make it difficult to secure loans or lines of credit essential for business growth. 

Taking Action: Addressing Your Tax Debt With The IRS 

The weight of back taxes can feel insurmountable, but it's important to remember you are not alone. The IRS offers a variety of solutions to help businesses resolve outstanding tax liabilities. The first crucial step is to gather all your financial ammunition. This includes tax returns, bank statements, invoices, and any other documents that paint a clear picture of your business's financial health. Having this organized information readily available will be instrumental when working with the IRS. 

Take a proactive approach and don't shy away from contacting them directly. The IRS offers various taxpayer assistance programs staffed by individuals who can understand your specific situation and guide you towards the most suitable resolution. Whether you choose to connect by phone or schedule an in-person meeting at a local office, open communication is key. By initiating contact and demonstrating a willingness to address the issue head-on, you will be well on your way to finding a solution that works for both you and the IRS. 

Exploring Solutions For Repaying Your Back Taxes 

While completely eliminating your tax debt in one fell swoop might be ideal, the IRS recognizes that such a feat isn't always achievable for businesses. They offer a toolbox of options to help you chip away at your back taxes and move towards financial solvency. The most straightforward approach is the full payment option. Settling the entire outstanding balance immediately eliminates the burden of accruing interest and penalties, offering a clean slate. 

This solution hinges on having the necessary resources readily available. If a lump sum payment seems insurmountable, consider an installment agreement. This option allows you to spread out your tax debt over a defined period, typically stretching up to 72 months. This provides manageable monthly payments that ease the strain on your cash flow. Consistent and timely payments are crucial to maintaining this agreement and avoiding additional penalties. 

For businesses facing significant financial hardship, an Offer in Compromise (OIC) might be a viable option. An OIC essentially allows you to negotiate a settlement with the IRS, offering a lump sum payment that is less than the total amount owed. The IRS will carefully evaluate your current financial situation and future earning capacity when considering your OIC proposal. 

If your business is experiencing extreme financial duress, you might qualify for "currently not collectible" (CNC) status. This status acts as a temporary pause on collection efforts by the IRS, granting you some breathing room to focus on improving your financial health. It is important to remember that CNC status doesn't erase your debt, and interest will continue to accrue during this period. 

Seeking Professional Help: Navigating The Complexities Of Tax Resolution 

The world of tax law can be intricate and overwhelming for business owners. Consider seeking professional assistance from a qualified tax attorney specializing in tax resolution. 

Here are some of the benefits of hiring a tax attorney: 

Understanding Your Options 

A tax attorney can help you understand the full range of options available to resolve your tax debt and navigate the complex IRS procedures involved in each approach. They can analyze your specific situation and recommend the most suitable course of action for your business. 

Negotiation Experience 

Attorneys have the experience and knowledge to negotiate effectively with the IRS on your behalf. They can help you seek penalty abatements, negotiate favorable installment agreements, or build a strong case for an offer in compromise. 

Reducing Stress And Saving Time 

Dealing with the IRS can be time-consuming and stressful. A tax attorney can handle all communication and paperwork with the IRS, freeing you to focus on running your business. His or her experience can also expedite the resolution process and minimize further penalties. 

Moving Forward: Building A Tax-Compliant Business 

Resolving your outstanding tax debt is a crucial step towards financial stability for your business. 

Here are some strategies you can implement to prevent future tax problems: 

Accurate Recordkeeping: Invest in a robust bookkeeping system to ensure accurate and organized financial records. This simplifies tax preparation and minimizes the risk of errors. 

Tax Planning: Schedule regular consultations with a tax professional to discuss your business income and expenses and develop a tax plan that minimizes your tax liability while remaining compliant with regulations. 

Estimated Tax Payments: If your business income fluctuates throughout the year, consider making estimated tax payments quarterly to avoid penalties for underpayment. 

Stay Informed: Tax laws and regulations can change periodically. Staying informed about updates can help you ensure your business remains compliant and avoid future tax burdens. 

Facing back taxes can be a daunting experience for business owners. By understanding your options, taking proactive steps to address the debt, and implementing strategies for future compliance, you can navigate this challenge and ensure the continued success of your business. The IRS offers various programs and resources to help businesses overcome tax problems. By working with a qualified tax attorney and adopting sound financial practices, you can put tax issues behind you and build a more secure financial future for your business.