Are the odds in favour of your business surviving?
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 advisors 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.
Appointing your most trusted advisor
Most small business owners prefer to have their business affairs managed by one advisor: their most trusted advisor. Appointing your most trusted advisor means you will have one advisor 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 advisor.
- Does your advisor have broad business knowledge that can be tailored to your business?
- Does your advisor have an established network of professionals whom they can contact to assist you in areas they are not qualified?
- Can your advisor provide you with small business references of prior success?
- Is your advisor a small business specialist?
Preparing a business plan and appointing a most trusted advisor 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 Thnk Advisory 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.