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Small Business

Small business – how to swim, not sink

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Small business – as those working in one will tell you – is not all it’s cracked up to be.

Many people dream about owning their own business but the reality is it’s hard work and many fail.

So, how can you stop yourself being another small business statistic?

Starting a business doesn’t necessarily mean succeeding in business. Approximately 80 per cent of businesses fail within the first five years.

Business collapses often coincide with divorce and other family difficulties.

So, it’s one thing to daydream about being in business for yourself but quite another to be in there putting in the hours and being responsible for your own income.

Money matters

In small business, a lack of funds – either from your own nest egg, or what you’ve borrowed – means you can’t afford to pay for the right help with a good accountant or business adviser. You’re a bankruptcy time bomb ticking!

Save up or borrow wisely. Many businesses fail because of cash flow problems, when those who owe you don’t pay as quickly as you pay the people you owe!

Tax could be one of your greatest expenses. Read about it on business websites like ours, there’s money-saving advice out there but you’ve got to be looking and listening.

Don’t do it alone

A great plumber generally is not a great bookkeeper and a great chef might know how to manage a kitchen but a cash flow problem could be too hot to handle.

Experts are needed and they will cost, but flying solo in small business is like flying blind!

Fail to plan

… and you plan to fail. Write a business plan, set achievable goals.

Write down where you want to be in 12 months time and then each day make sure you do exactly what’s needed to help you get to your goal.

A goal is just a dream with a date attached to it.

Friend or foe?

Business collapses often coincide with divorce and other family difficulties.

Think very carefully about who you go into business with, and ensure there are structures in place in case it all turns sour.

Eyes wide open
You must become an expert on your own market.

You must know as much as you can about what drives it; what kills it; what government plans are for it, and what’s happening overseas.

Get the money in

Businesses need to take a systematic approach to debt collecting because it’s one of the most important things to do for business survival.

Don’t forget the winning formula

Success in business means being focused on winning so keep learning new and better ways to succeed. Don’t ever think that you can stop learning.  

Protect yourself

Take out insurance. If I need to explain this, then forget starting a business!

Train hard

A sports star trains daily, eats right and competes hard. Take this attitude and discipline to your business and you will do business like a winner.

Be honest with yourself
Are you prepared to give your business 100 per cent?

Remember, it takes commitment and hard work to run a small business!

So, if you’re looking to work on your business rather than being stuck in it, book in for a complimentary business assessment today with Switzer Business Coaching

Published on: Tuesday, February 16, 2010

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