Are You Setting Your Business Up for Failure?
This post first appeared on the CA4IT Blog on June 3, 2016
For those considering starting a business as an independent contractor, they face many decisions in the initial launch of their endeavors. However, some also jump in feet first with no real long-term plan for the growth and success of their business. They assume that they can utilize their professional skills and experience to build a brand one client at a time. While a successful independent contracting business truly begins with personal talent and motivation, you should also create a comprehensive business plan that has clear benchmarking built into it.
What is Benchmarking and Why is It Important for Independent Contractors?
While benchmarking sounds like a term business majors learn in college, it’s truly a principle that applies to any successful business model. Benchmarking is a measurement of the quality of a business’s policies, products, programs, and strategies, as well as a comparison of those to peers or competitors. When you incorporate the principles of benchmarking into your business, your goal is to determine what improvements you need. You also want to analyze how similar contractors achieve their high performance levels, and then use this information to adopt your own plan for success.
Benchmarking seems like commonsense, but new independent contractors often get so caught up in the everyday workload that they fail to take that objective step back. For example, have you reached the point that incorporating a small business makes sense for you, or are you too focused on building your brand or client acquisition? Unlike larger corporations, independent contractors wear all the hats. Therefore you not only must perform all of the day-to-day tasks for your clients, but you are also responsible for marketing, bookkeeping, and future planning. You have to look at the bigger, more long-term picture even if that’s the last thing on your mind right now.
Our CA4IT member firms believe that benchmarking, especially in terms of financial practices and tax planning, helps promote successful small businesses. Whether you need a partner in virtual bookkeeping, or want to know more about incorporating a business in Canada, we have the assistance you need to construct the most effective business model. Contact a representative today, and treat your business like the well-planned organization it needs to be.