For growing into a sustainable company, Startups go through three distinct phases: Designing the product, selling the product and maintaining the business in the market. On this last phase we can take concrete actions like; evolving the product and service offerings, streamlining operations, modifying the sales organizations and others.

Here you have 7 tips for companies preparing the growing process.

1 .Establish a customer-success team

If it hasn’t been done already, establish a customer-success team with the goal of maintaining customers for a long time. Measure and incentivize this team by gross churn.

Significant attention needs to shift from securing new customers to retaining and selling to current customers

2 . Invest in product marketing

Consider vertical sales and marketing teams based on industry, use cases and/or products. Establish a product-marketing team in charge of writing marketing requirement documents for products; these are called MRDs for products, creating sales collateral , developing customer advisory boards, messaging, and pricing, and simplifying product packaging.

There will be a diminishing productivity rate, largely because the salesforce is no longer only comprised by the founder. Counteract this by making sales easier.

3. Take a channel strategy

While a channel strategy isn’t for everyone, most companies opt for a combined direct and channel approach . It is a must to be patient, but also very critical of progress.

Determine if the channel’s sales team has the required knowledge to sell the product. Make sure they are correctly motivated to sell the product through a sales performance incentive fund , but consider compensating them in other ways, too. Allocate enough pre- and post-sales support

 4. Check product offerings

Challenge situations and consider new opportunities, including ones that would require more risks.

You can ask these questions: Can products be eliminated to double down on the successful ones? How profitable is each product line? How can the product’s market be increased? How can the average revenue per unit be grown? How can the product sales cycle be shortened to reduce the overall cost of sales?  How can post-sales maintenance costs are reduced?

5. Make tighter controls

While the company grows, the risk of losing control of spending and approval processes rise. So allocate resources to regulations and document-required. Make tighter controls that ensure compliance.

6. Open new channels of communication

Companies in the growth phase are typically large enough to switch from having two levels of management; for example, directors and vice-presidents to three levels of management, and the staff also increasing.

You can establish a culture of transparency. Schedule periodic meetings for all groups with all company  workers. Each senior executive should spend a significant portion of time to obtain an in-person assessment and encourage contact with all employees.

Challenge situations and consider new opportunities, including ones that would require more risks.

 7. Establish goals and key performance indicators in place

On the beginning Initial start-ups decisions are often made by intuition, but as the company grows, they must be checked by data collected and monitored regularly across the whole company.

Key performance indicators attainment should be shared transparently across the organization, and compensation should be tied to them also.

Leaders at every level must define and track key yearly and quarterly goals.

 BONUS TIP: Outsource the payroll

Choosing to outsource the payroll does not mean, we don’t have any blame for an unwanted situation it might occur. We can avoid investing in training and payroll software. These are reasons why choose an outsourced service is a right choice.

All we will have to do, is to provide a person with basic knowledge of the payroll function, who will be the connection with the outsource service . It is necessary a person in charge for making decisions. The outsource service like payroll in chile, has a detailed service level agreement, so we can contract the services we require from the outsource service, keeping in-house others.

 

 

Reducing tax is a wide concept. Most businesses want to contribute the tax that they owe, however they don’t want to pay more than they have to.

Technically it’s impossible to reduce your tax, as everyone is charged the same rate, set by the tax agency. In the case of Corporation Tax, the applicable rate is paid on your profits; the money left after all allowable deductions for expenses, salary and others, and is set depending on your profit level.

Most contractors, freelancers and small businesses pay the small profits rate, and large companies pay the main rate .The key to making sure you pay no more Corporation Tax than you have to, therefore, is making sure you take advantage of every allowable deduction and expense to give an accurate picture of your profits.

For example, If you paid 500$ for a new piece of equipment but forgot to claim it, your profits will be overstated by 500$, so you will pay 100$ depending on the profit rate, as an extra in Corporation Tax. It literally pays to stay on top of these things.

Every situation is different, and there may be deductions or allowances for your specific industry, we recommend check with a professional. There are a few basics every business owner should know to make sure they’re not paying more tax than the necessary.

Record everything

Record every train or bus ticket, and each pad of paper, because over the course of a year those items add up.

You’ll have industry-specific items to claim too, remember your tax agency rules. Basically anything you claim must be entirely for business use.

Use Gift Aid

When making a charitable donation, make sure the Gift Aid box is selected so that the charity gets the full donation tax-free. Higher rate taxpayers can claim the difference between the higher rate of tax and the basic rate of tax, on the total value to the charity of your donation.

Claim all allowances and benefits

While some benefits are being cut, make sure the state is giving you what you are owed.

Pay yourself a salary

Do not forget that you and your business are different legal entities; the money made is not yours so you need to pay yourself a salary. Also salaries are business expenses, which reduce your profit and, in turn, your Corporation Tax.

Check tax codes

Be tax aware and make sure your tax code is correct. Some people may be paying too much tax without knowing it. If a tax code is not correct, the wrong amount of tax and deductions will be made. If you think there is a problem with your tax code, contact your local tax office.

Buying new equipment

If you’re in need of a slightly heftier piece of equipment, new premises or other assets, you can take advantage of your government’s annual investment allowance; things like commercial vehicles, building fixtures and office equipment for tax purposes.

Consult a chartered certified accountant

Tax is confusing, so when it becomes too complex to deal with you, it is an intelligent option to consult a qualified chartered certified accountant, like accounting in Chile

.