Reality - between 50% and 75% of new businesses won't make it past the first 3 years!!
So why is that?
Well, many business are started because the person wants to be their own boss, they want to seize an opportunity, are looking for a change, or may have been made redundant. The reason doesn't matter, but the approach taken does.
Commonly, start-up businesses fail for reasons such as;
- lack of business experience
- not managing stock
- poor cash flow management
- not enough working capital at commencement
- poor invoicing practices
- not collecting from debtors
- insufficient planning, including no business plan
- bad location
- lack of training
and the list goes on.
So what can you do to avoid being a statistic?
- Have an effective business plan, including marketing, cash flow, performance indicators.
- Make hard work the cornerstone of your every day. Read What It Takes by Mark Bouris.
- Take action, because a plan without action is useless. As a friend of mine Michael Sheargold says "The power of an idea is in its implementation".
- Insure for what you can't control, and don't skimp.
- Minimise your risk, including having the right structure. A company might be a bit more expensive up front but you'll be thankful.
Success has always had characteristics such as control, planning and decisiveness.
And remember, you don't have to do it on your own. Do what your good at and pay for quality legal, accounting and financial advice.
For great start-up advice from THE Business Specialists, Contact Us at Clifton Accountants today.