When a new business seems to be successful, it’s tempting to want to make it grow. Whoa! Plan carefully so that you will have enough cash to cover the expansion. When the time comes to borrow from a bank or other lender, they don’t want to see noticeable gaps between money coming in and flowing out.

Trim your staffing costs. Don’t hire more people than your business can support. At first, it may make sense to hire temporary employees or outsource some work before committing to full-timers. And share the need for tight controls with the staff; let them feel they have a stake in the business.

Need more financing? Start early to line up sources, long before you desperately need money. Some smart business owners keep deposits in several local banks to maintain relationships with potential lenders over the years. Those relationships can pay off with easier loans on better terms.

For nearly 30 years, Mike Nickerson has owned and managed a small, full-service accounting practice in the Midcoast. He holds a bachelor's degree in accounting from University of Southern Main and a master's degree in financial planning from Bentley University.

He is a past board member and president of the Maine Society of Certified Public Accountants and currently serves on the Maine Board of Accountancy.

An aged rock musician, Nickerson now finds musical enjoyment playing upright and electric bass in a variety of bands spanning folk to jazz music genres. He and his wife have three grown children, and they enjoy their free time hiking, kayaking, golfing, bicycling and motorcycling.

http://www.nickersonpa.com/