Approximate reading time: 3 minutes
Did you know that in Australia somewhere between 50% and 75% of businesses fail within 3 to 5 years of their commencement?
Congratulations! You have recently become a small business owner or maybe have an opportunity to start a business. It’s now time for a reality check! Australian Government statistics provide a stark insight into business failures in Australia: somewhere between 50% and 75% of businesses fail within 3 to 5 years of their commencement. Obtaining professional advice and preparing a realistic business plan will significantly reduce the risk of your business failing.
Business planning
Having an effective business plan increases the odds
of your business succeeding. In other words, most businesses with realistic
business plans succeed. A business plan will help you objectively analyse your
business opportunity, pin point critical success factors for you to succeed,
forces you to consider the threats to your business, confirms the demand for
your products and/or services and documents goals and targets for you to
achieve within achievable time-frames. However, it is just as important when preparing
and implementing your business plan that you source independent quality professional
advice to assist you with the process required.
Independent quality professional
advice
Sourcing quality professional advice is essential for
your business to succeed. Not only will your professional advisers help you to
complete and implement your business plan but they will also help you navigate
through the maze of complex issues you face when starting a business. Common
feedback we receive from clients is around experiences with cheap advice and
that ultimately this was more expensive in the long run. Whilst cost is a
significant factor when establishing a business, consideration should be given
to the potential cost of opting for cheap advice. A good rule of thumb is that
if you have a sound business plan and believe in your business, you can’t
afford not to have quality advice.
The table below provides examples of professional
support and advice you will most probably need when starting your business.
Accountant
|
Financial
Adviser
|
Lawyer
|
· Business planning
· Financial accounts
· Tax
|
· Finance
· Insurance
|
·
Contracts
· Leases
· Structures
|
Appointing your most trusted adviser
Most small business owners prefer to have their
business affairs managed by one adviser: their most trusted adviser. Appointing
your most trusted adviser means you will have one adviser coordinating the
management of your business affairs. It enables you to focus on what is most
important for your business’ survival: new customers, growth, pricing etc.
Your accountant is usually well positioned to take on
this key support role. Here are some tips when selecting your most trusted adviser.
· Does your adviser have broad business knowledge that
can be tailored to your business?
· Does your adviser have an established network of
professionals whom they can contact to assist you in areas they are not
qualified?
· Can your adviser provide you with small business
references of prior success?
· Is your adviser a small business specialist?
Preparing a business plan and appointing a most
trusted adviser are sound business tactics. Taking time out to plan and
receiving targeted advice may mean the difference between your business not
only surviving but thriving.
At SJN Chartered Accountants we have a passion for assisting business owners (and those planning to become business owners) plan and achieve their business goals through a structured process of continual communication.
Please contact us to find out more.
Phone: 8333 7300
Email: info@sjnca.com.au
A great read, very informative!
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