Starting, running and developing a successful micro business is hard. The odds of success are always stacked against the business builder, in no small part due to the very definition of a micro business, its’ size.
Unfortunately there are no size related exemptions for the “one man band”. They still have to perform in the core dimensions of a business:
1. Product/Service delivery
2. Sales and Marketing
3. Financial management
If they don’t at best they never reach their full potential at worst they fail.
1 Product/Service delivery : Micro businesses are most skilled in delivery, when you spend time with any micro businesses owner it is clear that this is why they started and what they want to focus on. The other dimensions are often not on their radar but if they are to be successful they have to be.
2 Sales & Marketing : Social media has changed the game for micro businesses. Many micro business owners already highly “social”in their personal lives have extended this to their businesses. Authenticity has enabled them connect deeply with customers creating product ambassadors across the social landscape. Platforms such as Facebook, eBay and Amazon provide seamless ways for micro business to sell products with minimal upfront costs. Looking after customers and the deep relationships micro businesses build with their customer base differentiates them against bigger businesses and drives further referrals and repeat business.
In the current social era the only barrier the micro business has between them and millions of potential customers is time. The time it takes to get “social”.
3 Financial Management The dimension that causes the fatalities, and it’s hardly surprising. Micro business builders have built their product/service delivery skills throughout their career and through their other interests. They have developed sales and marketing skills through the extension of their social activity. But financial management?
Running a personal budget is not so easily extended to a business. In addition the introduction of a whole new language of accounting and legal terms, penalties if they get it wrong makes it difficult to learn whilst trying to keep a business going. The result is micro business builders ignore it and hope for the best.
Effective financial management has always been the biggest challenge for the micro business. An unforgiving mountain whose slopes are littered with the hopes and dreams of too many failed businesses.
It has been difficult to see how the financial management mountain could be conquered in the same way social media has planted the micro business flag on the sales & marketing summit. There are so many dangerous drops that can kill the micro businesses through out their journey.
The only safe path to summit success for the majority of micro businesses is
Controlled incremental growth
Take the resources that are available, calculate the rate at which the business can grow and follow the plan. If the business has access to more capital it can grow more quickly if it doesn’t it has to grow slowly.
The problem is that many micro businesses owners have no real idea what this growth rate is never mind a reliable method to stick to it. Business planning is offered as a solution, however too often the business planing process is subjective, lacking in historical data and at the mercy of what the business builder wants to be the reality rather than the actual reality.
Many micro business builders do not fully understand the mechanics of their business model or the accounting concepts needed to plot the right path forward. This all results in the micro business attempting to scale a mountain blind folded, without the required training and preparation.
That is until now.
Invisible Accounting is set to change the game for micro businesses builders. Providing not only the most experienced team of digital sherpas to find the best path to the summit, but also a more actuate way of forecasting difficult weather that will inevitably be encountered along the way.
Invisible Accounting will do for micro businesses financial management what social media has done for micro business sales & marketing.
Invisible Accounting underpinned by Artificial Intelligence is a quantum leap for the micro business.
1 Invisible Admin through increased levels of automation to ensure data input and admin gets done in real time with higher levels of accuracy.
2 Realtime data access provides a clear path for controlled incremental growth and instant feedback on decisions. Good decisions accelerated bad decisions reversed before they become fatal.
3 AI covers skill and knowledge gaps with AI algorithms constantly learning and keeping up to date with the development of the business.
A choice of interfaces with which to access and interact – whether that is a is a chat bot via a messaging app, a simple app via a device or voice via a virtual assistant – the barriers to understanding are significantly reduced.
Finally, micro business builders will be able to truly focus on what they have always done, delivering amazing products and services to their customers. Now safe in the knowledge that the admin and accounting is happening behind the scenes, there for them when they want to check in or pushed in front of them when their input is required.
InvisibleAccounting will also be a game changer at a broader economic level.
Increasing the effectiveness of micro businesses financial management will significantly reduce business failures and increase the number of people being able to successfully start up. This has major positive implications for future economic growth and job creation in not only in the developed world but also in emerging markets.
Invisible Accounting the fuel for the Micro Business revolution, the only joining requirement ? An idea and a connection.
Product Manager, Mobile Applications at Sage – Linkedin