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Business by Design: Beating the Odds!

Clear Vision • Aug 31, 2016

Key elements of successful businesses – why building a business by design is the key to your success

I’m personally a strong believer in the principle of business by design.  That’s because I’ve seen examples time and time again of successful businesses that are created by careful design of each element of the business.  And in the opposite case, I’ve seen many otherwise viable businesses fail simply because they left large parts of their business to chance, rather than creating a business by design.

This series of articles will be addressing the key reasons why most businesses, primarily small to medium enterprises go out of business.  And help you to understand how to design your business to avoid these problems and succeed!

Part 1 – Beating the odds!

An article I read recently cited ASIC data which indicated that more than 60 percent of small businesses cease operating within the first three years of starting.  That’s a pretty daunting figure if you are thinking about starting a business.

Let that sink in for a minute – LESS THAN HALF SURVIVE BEYOND THREE YEARS!

Of course, not all of those that cease trading are financial failures or disasters for their owners.  Many businesses transition into other businesses, owners find that working for themselves is not what they’d hoped and some get acquired by other businesses.

But what about those that do fail?  What is it that pushes them under?  What leads to the demise of what may have been a long held dream of the business owner?

And most importantly, how can we learn from these failures and design a business that will succeed?

That same article provided some further data from ASIC around corporate insolvencies and the recorded reasons for the business going under.  These included:

  • 44 percent had inadequate cash flow or high cash use
  • 42 per cent suffered poor strategic management
  • 34 per cent suffered from trading losses

Already there is a pattern emerging here.  Sometimes a business is simply just a bad idea or there isn’t a genuine market for the product or service – but quite often the issue isn’t with the business idea – it’s with how the business is managed and designed.

Being the world’s greatest carpenter, dentist, builder or chef doesn’t guarantee you a successful business if you get the management and finances wrong.

Another issue identified was simply a lack of capital.  Many businesses need a significant investment to reach critical mass.  Without that, they may never thrive.

Other issues include:

  • Lack of management experience
  • Lack of a business plan or realistic business model
  • Insufficient marketing
  • Poor financial management

We have a variety of articles on this website to help you address each of these common causes of failure so that your business thrives and doesn’t become part of ASIC’s insolvency statistics!

Embracing the Bright Side: Finding Joy in Everyday Moments

By Caroline Gillies • 07 Mar, 2024
In a world that often feels chaotic and uncertain, it's easy to get caught up in the hustle and bustle of life, forgetting to pause and appreciate the simple joys that surround us. But amidst the challenges and hardships, there is always a glimmer of light waiting to shine through the darkness. Today, let's embark on a journey to explore the uplifting and positive aspects of life, reminding ourselves of the beauty that exists in every moment. Gratitude: A Key to Happiness Gratitude is a powerful tool that can transform even the most mundane of days into something extraordinary. Take a moment each day to reflect on the things you're grateful for, whether it's the warmth of the sun on your face, the laughter of loved ones, or the beauty of nature. By shifting your focus to the blessings in your life, you'll find that joy naturally follows. Embracing Imperfection Life is messy, unpredictable, and imperfect – and that's what makes it beautiful. Instead of striving for perfection, embrace the flaws and quirks that make you unique. Celebrate your successes, no matter how small, and learn from your mistakes with grace and humility. Remember, it's okay to stumble along the way – it's all part of the journey. Finding Joy in the Little Things Happiness doesn't always come from grand gestures or monumental achievements. Often, it's the little things that bring the most joy – a kind word from a stranger, a hug from a friend, or a quiet moment spent watching the sunset. Pay attention to the small moments of beauty and wonder that pepper your day, and you'll find that happiness is never far away. Spreading Kindness and Love In a world that can sometimes feel cold and indifferent, kindness is like a ray of sunshine breaking through the clouds. Make it a priority to spread love and positivity wherever you go, whether it's through a simple act of kindness or a heartfelt compliment. By lifting others up, you'll find that you lift yourself up in the process. Cultivating Inner Peace True happiness comes from within, rooted in a sense of peace and contentment that transcends external circumstances. Take time each day to nourish your mind, body, and spirit – whether through meditation, mindfulness, or simply taking a walk in nature. Cultivate a sense of inner peace that will sustain you through life's ups and downs, allowing you to navigate challenges with grace and resilience. Embrace the Journey Life is a journey filled with twists and turns, highs and lows, but it's also a journey filled with beauty, wonder, and endless possibilities. By embracing the bright side of life, finding joy in everyday moments, and spreading love and kindness wherever we go, we can create a world that is a little brighter, a little kinder, and a little more beautiful for us all. So let's embark on this journey together, with open hearts and open minds, ready to embrace all that life has to offer.

Boosting Your Superannuation: Seven Powerful Strategies

By Caroline Gillies • 22 Feb, 2024
Boosting Your Superannuation: Seven Powerful Strategies

Changes to Company details and ASIC – How to avoid a fee

By Caroline Gillies • 19 Oct, 2023
When it comes to being a Director of a company, there are administrative requirements that must be complied with, including keeping ASIC in the loop. We all hate paying unnecessary fees, and ASIC loves to charge fees. To avoid late fees, ASIC must be told about any changes to company details, including your business or residential address, within 28 days. If your company's information changes, please let us know so we can notify ASIC on your behalf. Example: Jarryd gets a late fee Jarryd recently moved his company to a new storefront. In the rush of changing to his new principal place of business, he forgot to update his address details with ASIC. A month later, Jarryd logged into his online account to change his address to reflect the address of his new principal place of business. Because it was outside the 28 day timeframe, the company was charged a $93 late fee. If he had waited longer and lodged the change of address more than a month late, the company would have been charged a $387 late fee. To avoid fees in the future, Jarryd realises it's important to update his details as soon as they change. In summary, be like Jarryd and realise the importance of advising Clear Vision Accountancy Group of any changes. Example supplied by ASIC
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