There are numerous stories of new businesses that have reached the stratified heights of success. Such stories are usually motivational and inspiring and encourage entrepreneurs to have diligence and optimism in all of their future ventures.
However, what these stories fail to point out is the countless other businesses which sadly, failed to make the cut. How can you make sure that your business is a success and why do some individuals make amazing progress in the market while 70 per cent of other businesses fail within the first few years?
Part of the problem, of course, is failing to plan for their finances. There is a rule of the thumb while starting out in a small enterprise – when you are drafting a business plan and you are considering the input, ensure that you will have access to about 3 times the amount of starting capital – within the period of 1 year.
If you don’t have the money, there are funding methods out there that are bound to be suitable for your type of enterprise. Think about debt financing. How about pooling together with like-minded individuals with almost equal net worth? Better still, why not convert assets in holdings to liquidity so as to facilitate easier operations?
Once you have researched your target market, developed your product and created a business plan you need to ensure that your business finances are sound.
Well, it is easy to sit down and scheme about grand ideas that will make you millions of dollars within 5 years but you need to make sure your financial goals are actually achievable in the real world. Without proper planning and taking into account different market parameters like taxation, rent and other financial aspects of a business you won’t have a realistic idea of what you business can potentially achieve.
One of the most important things a new business owner can do is hire an accountant. If you want to hire an accountant in the Wellington area look for a professional company that is registered with the accounting professional body CAANZ. This registration means that your accountant undertakes ethical, professional practice. This means that before they are given the appropriate certifications, they undergo rigorous training and testing that ensures they know the world of business accounting inside out.
An accountant does much more than look through your numbers and project the future cash flows. They know which banks have the most competitive advantages for business owners and they can track, plan and forecast your business financials to keep an eye on your long term performance.
Count on Us is an experienced team of accountants in Wellington. Visit their website today for affordable financial advice and keep your business on the road to success.
Contact our friendly team at Count on Us to make a booking!