6 Reasons Why Businesses Fail and How to Avoid Being Next

Entrepreneurs are exposed to many risks when starting a business; foreclosure is one of the inevitable ones. 

Today we will go over 6 common pitfalls as to why businesses fail and how you can protect your prized business from being the next one. 

1. A staggering 61% is the inability to manage costs – cost to start up, pay rent, pay staff and their super and tax, pay ATO tax and GST, pay for overheads and on going costs just as professional accountants and solicitors.

2. 50% poorly designed business models or no business plans. Business owners who has a business plan to map the future, develop and communicate a course of action and manage cash flow need to ensure that the business plan are renewed and innovated over time to meet the needs of customers.

3. 49% insufficient capital. The business failed to have sufficient operating funds as business owners underestimated how much money to start up as well as how much they need to continue to run the business.

4. 37% Poor or insufficient marketing. The business’ brand is weak and hence very little prospects know about their brand.

5. 26% failure to seek professional advice. The business did not acquire professional advice when starting, growing or ending a business.

6. 50% of businesses fail because of inexperienced management. Those who break free from the corporate world to start their own business soon find that they are great technicians of what they do but don’t do so well at running their business. If you are starting your business from scratch it is recommended that you seek help from accountants to help manage costs, prepare business plan and up skill by enrolling into a success business accelerator. This will ensure you stay on the other side of the 50% of businesses who do succeed. Will you hide your head in the sand like this man below and do nothing or read on and take the solutions below on board?

 

 

What is the solution?

Do you have an accountant who cares and has the knowledge to help you with the 6 steps above?

Well you are in luck as our Success Accounting Group family this year is recruiting new business clients who are willing to embrace technology and are ready to innovate and grow their profit.

To qualify, we will like to have an initial strategy session with Lan Nguyen to seek to understand your business and personal goals.

If you are ready to make an appointment, please call (03) 9583 0550 to schedule your initial strategy session today!

To learn more, please register for the upcoming webinar ‘5 Ways to Accelerate your Business’ by clicking here.

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