How To Manage An LLC?

September 26, 2020
Business Basics
How To Manage An LLC?

Running a business is no easy feat. Depending on the industry your business is in and the type of product that you offer, there are usually several different processes that you need to monitor. This is why successful business owners are so impressive!If you have a new business structured as an LLC, you might find that managing your business, your time, or your stress levels are becoming increasingly difficult. However, there are some simple ways that it can be done effectively. To successfully manage your LLC, you’ll want to accumulate everything that you need to track and create a plan for staying on top of all aspects of your business. Here’s how to begin:

Getting Started Managing Your LLC

To identify how best to manage your LLC, you first need to determine what exactly needs to be managed. There are a number of items that a business owner will have to keep tabs on at any given moment. And these items will include both client-facing and internal processes. You’ll be able to easily identify these processes as they are largely required when you set up a new LLC. For example, you’ll have to provide an Articles of Organization to the state that your business is registered in. The Articles of Organization will describe your governance structure. It is also recommended that your business complete an Operating Agreement, so that the powers, rights, and other businesses belonging to the company are designated in writing. With this information, you should be able to get started.

Internal Processes an LLC Owner Needs to Consider

Accounting and payroll: Every business deals with money, whether it is dishing it out or raking it in. Therefore, you’ll need to establish how the money will be received or sent (most likely through a business bank account). You’ll also need to decide on accounting or payroll software to help manage payroll and to track operating expenses and payment methods for both accounts receivable and payable.Taxes: While one of the least enjoyable aspects of running a business, your company has to file and pay taxes. Be sure to have an accountant or CPA on hand to help manage this aspect of your business so that your company does not get into tax trouble. You’ll also need to consider withholding employee taxes and budgeting for the amount of taxes that your company will have to pay for each employee.  Employee management and benefits: Depending on how many employees you have (if any), you’ll want to consider how you are paying employees, the taxes that will need to be filed for each employee type, and if your business will offer them benefits. You’ll also need to consider who is managing the employees and whether or not you will need to hire someone to do this job. Compliance and privacy: Business compliance and user/employee privacy are also things to take note of. These are some of the most difficult items to assess as these types of regulations often contain unfamiliar lingo. And in this sense, you may not know if, or when, your company is non-compliant. You can refer to a professional to help you sort this information out.Productivity and project management: You’ll need to consider how projects, tasks, and productivity will be managed. Will you have a project manager, or will you be able to use project management software to keep track of your teams?Inventory, goods/supplies, and services: How you manage your inventory, goods/supplies, and services will largely depend on your industry; if you are providing a service, ensure that those providing the services are licensed/registered/certified or insured to do so. If you are providing a good, be sure to set up an inventory tracking system and likely source a software and logistics coordinator to track this aspect of your business. Communications and business governance: This establishes how you’ll be conducting business internally and communicating with your employees. You might use productivity apps, like an email communication client and a cloud service, but you should use a formalized business email under your business name.

Client-facing Processes an LLC Owner Needs to Consider

Brick-and-mortar store: If you are operating a storefront, you’ll need to lock-in a rental agreement, utilities, phone lines, and the furniture and items in the store in order to get up and running. You can run this yourself or hire someone to help you. Be sure that all the permits are obtained to operate your business there. Main client interface: This really means - how will customers, clients, or other businesses be interacting with your business? If you do not have a brick-and-mortar storefront, consider the way that customers will find you. Is it online or strictly through referrals? In either case, you’ll want to set up a website and obtain a domain address for your business.Marketing and advertising: Once the basic processes are up and running, you can start to send out marketing materials through a variety of advertising channels. Consider a marketing campaign that makes sense for your target audience and pick a financial and time budget that you can afford to spend. Customer service: You will most likely need to provide some form of customer service; and when you’re starting out, the “customer service” department will most likely be you! Be prepared to answer questions from potential customers and address concerns. POS and payment processing: In order to accept payment, be sure to set up a payment processor, which can be in the form of an online third-party payment process (TPPP) or point-of-sale (POS) system at a store.

Managing Your LLC

As an LLC owner, your business will likely be interacting with clients, whether they are actual customers or other businesses. Therefore, be sure to clarify the client-facing processes when managing your business. You’ll also need to establish internal processes, although these will depend on the type of service or product that you provide.While much of this might vary in importance and scale, managing all these items are necessary and something that every business owner needs to consider. Depending on how important one aspect is over another, you might need to outsource certain tasks to a contractor or freelancer or hire a service to help you manage this business.

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