Businesses come and go, and many entrepreneurs aspire to live the dream of being their own boss.
So, what makes the difference between success and failure?
We’ve pawed over the investigation report by our friends at Xero called, “Make or Break?” and we’ve picked out three key characteristics and habits that will lead you down the path to success.
- Know your numbers – it’s obvious to us number crunchers, but learning how to forecast cash flow may well save your business. A whopping 65% of failed businesses sited financial issues as their reason for failure – both visibility of cash flow or inability to borrow (hint – these two are very closely linked, need a loan? Show your forecast) were mentioned. The solution here is to use cloud software for your business, and use technology apps to go with it. In summary – very early on, know where your cash comes from and when, and where you spend it: timing matters.
- Be willing to spend some money – Those who succeed do spend money on marketing activities and/or customer service. The successful also invest in software to manage the business finances, 58% of business successes did this compared to 14% of failures.
- Don’t be afraid to fail – but pick yourself up and keep going, my friend. Those who succeed are those who just go for it, even though they may fail. Xero quotes, 58% of its survey respondents had a corporate position before starting their own business. What’s that saying? If you don’t start, you can’t finish.
Here’s the inside track – Some other key facts from the Xero report to help your blueprint for success
- 88% of UK Xero customers are still operating after 5 years compared to an industry average of just 41% – boost your chances even more by working with a Xero accountant. Invest in some time saving rocket fuel and find Xero Apps that add-on to Xero and will help your business. For example, if you run a job based business, take a look at WorkflowMax, if you run a small salon you can’t operate well without Timely.
- Stay strategic and invest in marketing activity.
- Find friendly business networks where you can gain support.
- Finally, make friends with your Xero accountant, and talk to them about your plans.
We wish you every success with your venture. You can follow us on Twitter @shaperaccountants.co.ukaccounts