Macks Advisory observes the relatively high failure rate of new business start-ups. In our experience and from our research, we have learned the following broad characteristics of businesses that succeed and do not fail.
The list below may assist accountants and financial advisors in offering advice to their clients regarding business start-ups and early business survival.
1. There is no substitute for hard work and time must be spent by management learning about the business and working on the business, building relationships with customers, suppliers and sub-contractors
2. Management must keep a watch on competitors and new entrants to the market
3. Plan and design the business’s market position in the industry. Develop the firm’s identity on this
4. Have ready access to capital so that management is not distracted from managing and guiding the business by efforts to find cash for the business
5. Where possible, customize products and services
6. Plan and research the industry you are entering so that management choose only growth industries.
If management can adhere to these rules, their businesses are more likely to achieve a successful start-up and they do not necessarily have to be experienced in the industry to succeed.
Macks Advisory is a firm that practices exclusively in the areas of insolvency and business reconstruction and members with queries are invited to contact Peter Macks at Macks Advisory on 08 8231 3323 or [email protected]