Steps To Take When Your Business Is Struggling
In this episode, we will be hearing from Mitch Griffiths of Rhapsey and Griffiths Insolvency and Advisory. From keeping track of the financial standing of your business to learning on focusing on your strengths as a small business owner, you will learn that and more in this episode of Get to the Contest Small Business Podcast so make sure to stay tuned.
Get to the Contest Takeaways!
Be prepared to say no, always be on and ignore the noise
Starting or running your own business can take the unnecessary noise with it. You’ll hear a lot of opinions, suggestions, and criticism. It is important to reflect and ignore all the noise.
Do what you do and do it well.
Identify what you are really good at, focus on it, and you are sure to do it well. With success comes a lot of different opportunities as well, but also be prepared to say no to projects that are not the right fit. If you focus on things you truly excel at, this will allow you to specialize and be a lot more successful in your chosen field.
Know your numbers.
Always have updated records of your business finances to keep track of your financial standing. By having this information available at any given time, you can review and see if the business is doing well or is struggling. This will allow you to make decisions, take actions early and turn the business around before it’s too late.
Don’t stick your head in the sand.
If you are facing business or financial difficulties, face the music and never ignore them or tend to them on a later date. These challenges are part of the reality of owning your own business. Sticking your head in the sand will not make them go away but only worsen them. Do all that is necessary to have a quick turnaround with regards to challenges: communicate with your key stakeholders, talk to your accountant, talk to the ATO, just don’t ignore them. There is always a way out.
Stay close to your accountant and lodge on time.
One of the best relationships you can invest in, especially throughout your professional career, is to find the accountant that fits you perfectly. The guidance of an accountant can be priceless because this allows you to focus on the growth of your business. Your accountant can help you analyze your figures, make sure that you jump on things early, and take action. An accountant can advise you very well on ATO matters and lodging your taxes on time, which if you consistently do on time, will benefit you and your business in the long run.
Don’t trade as a sole trader or a partnership if at all possible.
It is really cheap insurance policy to have a company or a trust with a corporate trustee rather than trading as a sole trader or a partnership. If you do the latter, you are really exposed. Remember that when you are trading as a sole trader or partnership, there is no differentiation with regards to your personal and business assets so in a situation where liquidation is a possibility, trading as a company can help you save your significant personal properties and key assets.