At Knox Taxation we love business start-ups and enjoy helping clients buy and develop a new business.
However, a very large percentage of small business start-ups fail, so we thought that it would be worthwhile to highlight some of the most common reasons why!
Common reasons for failure include:
- Lack of in-depth planning prior to purchasing/creating a new business
- Unrealistic expectations regarding work load and return on investment
- Not enough capital invested into the business
- Did not effectively manage cash flow in and out of the business
- Lack of accounting and bookkeeping knowledge
- Focused on the features of their service/product as opposed to solving the true needs or problems of the customer
- Did not promote business services or products effectively
- Did not research competitors currently in the market
Some ways to boost the likelihood of your business being a success include:
- Being aware of new opportunities which will enable you to grow your business (new clients, special promotion campaigns, or mergers)
- Encouraging clients to provide referrals to your business if they are happy with the service
- Nurture your existing clients rather than constantly seeking new clients
- Think locally to ensure that you become well known in your local area and can be found easily
- Develop a strong vision and mission statement
- Have an in-depth understanding of your target market
- Research competitors
- Avoid making assumptions
- Understand your weaknesses, and then fix them.
If you are planning to start up your own business, PLEASE! PLEASE! PLEASE! seek advice before you do. There are many factors that you must take into consideration before starting up your business in order to avoid failure, and increase your business’ success.
At Knox Taxation, we can help you to determine the appropriate structure that suits your business and personal situation, set you up with the ATO and ASIC, register your business name if required, and assist you with managing your finances effectively.
Our accountants will also hold your hand and guide you throughout the entire process; highlighting ways in order for you to quickly get your business started and how to manage it successfully.
If you would like to book an appointment with one of our accountants contact us on 9762 7344 or firstname.lastname@example.org