How to Prepare for Business Growth

Living in the age of advanced technology tempts entrepreneurs to travel the globe in pursuit of data
that enhances business growth strategies. Gathering new business information is a valid pursuit for
owners of young firms, but before you begin importing data, make sure you are effectively
managing what you already have. The foundation for sustained business growth is the maintenance
of accurate information on which to base decisions and actions. Because record-keeping often seems
less important than producing or selling a product, many entrepreneurs place these tasks last on
their “to do” lists. Year two of the business can not be built on year one’s experience and so
mistakes are repeated, customers lost and expenses compounded. By years three and four when the
firm needs to secure financing for growth into other markets, to buy additional equipment or
acquire a computer, the necessary records for attracting lenders and investors is non-existent.
Technology has made the “cardboard box” method of record-keeping almost obsolete, but regardless
of the method of record retention, it is the owner of the small business who is responsible for
deciding which records will be kept and managed. A way to begin that process is to answer these
questions:

What records are mandatory? (Those required by state or federal law, insurers, investors and
lenders.)

What records are needed to continue operations in my absence? (Ask yourself what day to day
tools you use and what information you depend on regularly.)

What records are necessary for effective financial management?

What records protect the business and its employees?

What records are required to maintain and improve sales opportunities?
After answering these questions, make a list of those who have an interest in any of your records
such as shareholders, lenders, customers and suppliers. Determine what information they require.
With these items added to your list, you should have a thorough compendium of the information
you must maintain. Your next step is to decide which records are particularly sensitive and must be
indicated as such. You can then begin developing the record-keeping system that is easiest for you
to access as you make growth decisions.
Checklist for Record Retention
Contracts and leases
_ Patents, trademarks and copyrights
Tax bills and returns
Business plan, organizational objectives
Guaranties
Insurance policies
Financial reports
Accounting data
Human Resources files, benefits,
policies, performance appraisals
Goods ordered, goods sold
Suppliers and credit terms from
each
Customer lists
Sources of sales leads
Promotional literature
Competitors’ promotional literature