How we can help!
A new business starting today has <30% chance of being around in 10 years. This is a sobering statistic, and one which we would like to see improve. Through years of experience in seeing what not to do, in the work we do day to day, we have compiled some thoughts on how to best help your clients not become a statistic.
Many of our readers experience seeing the colloquial "writing on the wall" long before their client is willing and able to. Those signs often build incrementally through the regular how-is-business-going discussions with clients. We are hoping that early in those discussions you can help to identify issues in your clients' businesses that can be improved.
To survive to the 10-year mark and beyond, we recommend advisors focusing their clients' efforts on the following four areas of a business:
- Systems.
- Marketing.
- People.
- Finances.
Best practice in each of these areas, or at the very least a focus on continual improvement in these areas, will do wonders to ensure business longevity. The pattern that tends to emerge over many failed entities, is that most have neglected their development in systems, marketing or people, which ultimately significantly contribute to the company's demise.
While it is rare to see the sole cause of business failure for an established business being not monitoring the finances, we do think it is something that should be monitored. As a result, we have complied a short list of basic issues to consider with your clients, in the quadrants above.
Your local Worrells partner can help by shining a light on your clients' potential susceptibility in business operations and insolvency matters. If we can intervene early enough to influence decisions at critical junctures, failure may be avoided. We hope that some of these small changes will allow clients to flourish over an extended period of time.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.