5 Building Blocks of Operating a Corporation: Part 2

Posted by JasonBlumeron Feb 9, 2021 in 5 Building Blocks of Operating a Corporation

5 Building Blocks, Video 2 from Blumer CPAs on Vimeo.

Transcript:

Hey, hey, Jason Blumer here with Blumer CPAs. And if you saw our previous video, we're starting a series on the Five Building Blocks of Operating a Corporation. This is actually a slide deck we use to teach clients, and our team uses it to teach clients how to form and bring structure into their creative company. And so we've talked about this title last time. So what I want to hit are these five different areas here. What Got You Here Won't Get You There is the title of the slide. Here's five different ways to look at phases or growth as you go through, needing to bring more structure. So you see the end column of this is a structured company. So let's talk about how we got there real quick.

So a lot of creative agencies start as solopreneurs basically. And they just start out operating under their same name and that's fine, but what happens is, they start thinking about becoming an LLC when they start needing some help. So they start subcontracting out and that's the first step towards using and leveraging a team because the owner can't do everything at that point.

And then when you get to the Steady phase, that's where you're starting to... You got clients that keep coming back and you have steady revenue. You can predict a year in what that revenue's going to look like. And so you start really needing to produce a team and processes to support the steady production of revenue. So you're at a steady movement and you can predict and know that you've got a real business. You've got to start bringing some things in.

Now, the next phase is important. As the owner, you have to start really pushing off a lot of that technical, creative work, the stuff you did that you were so good at when you started the business. So in this fourth stage, you have to shed a lot of your processes. You have to pour your thoughts in mind into your team so they can help you grow. And if you, as the owner stay really involved in that technical work at this phase, it's going to bog you down and keep you from scaling. And then of course, what we want to do is, lead companies to be structured. So as you have more revenue, more team or processes. You actually need not only a more structured legal entity to manage your taxes in a different way. You actually have to grow in a different way. So you're eventually going to lead towards a more structured environment.

And if you're struggling with some of this, probably at some of these stages, if you're not shedding a lot of the past and embracing some new things, realizing what the title says is, what got you here won't get you to the next phase, if you're not doing that, just contact us at [email protected] and we'll help you figure out what growth ceilings you hit. And that's what we do. And then our team supports that accounting tax part of our work. So just reach out to us. Thanks so much. We'll see you.

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