Will Your Business Fail?
Smart Company reports that small and medium-size businesses are most likely to fail because of an inability to manage costs or anticipate rising costs, according to a survey of more than 1000 Australian owners of small and medium enterprises (SMEs).
Some of the other results were very interesting, too.
61% of the SME operators surveyed believe that small businesses fail because they don’t know how to manage their costs while 50% blame either inexperienced management or poorly designed business models. Almost 35% blame failure on operators not having enough time to manage their accounts.
When you began your business did you seek professional advice on how to structure the business and how to manage your finances?
If you answered “no” you aren’t the only one.
Other surveys on similar topics have discovered that most business start-ups focus on the work rather than their business model.
So what happens when you haven’t properly structured your business, have no clear idea of cashflow and finance and just want to get out and do the work your business is supposed to do?
Your business fails.
No matter how great you are at what you do, how desperate the market is for your product or how good it is, if you haven’t set your business up properly in the first place it will not be sustainable.
Too many SME operators trust in luck because they don’t want to invest in business planning and support services. They tie money up into products before they even know how they plan to sell them or what the demand might be.
Ask yourself what happens if you close down? What happens to your customers? What happens to you? No business can run efficiently without some professional business and accounting advice and support.
Will your business fail?
If you would like to chat with me about the way your business is running at the moment, give me a call. We do more than just keep books.