The Business Mindset – five common threads in every successful business
There are 250,000 new, small business start-ups created in Australia every year.
With a staggering three out of four businesses failing in their first year of trading, there is a need to help these businesses to beat these unfavourable odds.
According to CCIQ partner Ulton, a leading chartered accounting, business advisory and financial planning firm, the issue of starting business is not the problem. It is sustaining it.
Ulton partner Daryl Corpe said for many business owners, having the right information at your disposal gives you the power to make informed managerial decisions about your business direction.
"This information is critical when establishing your businesses presence in the market. It is often the difference between success or failure," he said.
"As a successful business owner and business advisor for more than 30 years, I have seen many of my clients businesses grow and achieve success. Over the years I have witnessed the importance of having the right business plans and strategies in place to help businesses navigate the ‘business labyrinth’.
"This ‘information’ that we refer to is commonly called ‘business intelligence’ or ‘knowledge’. How a business captures information and uses this knowledge is vital to its success.
"Every part of your business must be running with a clear plan and strategies in place to manage both internal and external factors that can either impede or facilitate a business’s chance of success. All businesses must adhere to a strict set of business fundamentals to ensure they return profits, run efficiently and remains competitive."
There are 5 common threads that every business must have to ensure its success and to reduce its risks of becoming another statistic.
1. The right mindset
Having the ‘right’ mindset from the get-go is very important in starting (or acquiring) a new business. You really need to go into business with your eyes wide open and with the right attitude and expectations. It is inevitable that you will experience ups and downs when you run your own business and it may be difficult and challenging at times, to say the least. But, if you are in business for all the right reasons and not just to ‘make a quick buck’… then you have the right mindset for business.
2. The right structure for your business
How you choose to set up and operate your business will have legal and tax implications, so it is important that your business is structured in a way that suits your business’s needs. There are four main business structures commonly used by SME’s in Australia and it is important to note that each structure has its advantages and disadvantages, but depending on what you wish to achieve, there’s a right structure for your business needs.
• Sole trader - an individual trading on their own.
• Partnership - an association of people or entities running a business together, but not as a company.
• Trust - an entity that holds property or income for the benefit of others.
• Company - a legal entity separate from its shareholders.
Have you set up your business with the right structure for your business needs?
3. The right growth plan for your business
Without the right growth plan, it’s like driving without directions or a destination. A growth plan details your business objectives and details every element and activity that requires your attention to achieve your objectives. It’s a tactical plan that is simple, direct and executable. Your growth plan will look at factors such as:
• Market conditions
• External advisors/Mentors/Advisors/Non-executive directors even business accelerators.
• Include other key members
Over the years, I have found that many business owners want to improve and grow their business, but they don't know how to do it.
4. The right review process
Every business needs to be reviewed from time to time to ensure its efficiency, productivity and profit generation. Usually businesses that are experiencing growth have outgrown their current operating systems and this adds extra pressure and stresses on other functions of the business. Now is the time to review your business to ensure you remain competitive.
5. The right advisory team
Having the right advice and support is crucial for your business to succeed. The right advisor for your business will have a good understanding of your industry, your business and will provide ideas on how you can improve your business to achieve greater success. The right advisory team will guide your business through the hurdles and to support your business decisions.
Ulton is one of Queensland’s largest business advisory, tax advisory and wealth management firms. We have been providing business advice for nearly ninety years and have helped countless business achieve business success. To help your business achieve greater success, give Ulton a call on (07) 4154 0400 or visit www.ulton.net
Register here for the September 18 webinar: The Business Mindset – Common threads in every successful business
This article was written by Daryl Corpe and edited by CCIQ's Darrell Giles