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The
BUSINESS
A C C E L E R A T O R
MAGAZINE
December 2021
The
BUSINESS
A C C E L E R A T O R
MAGAZINE
THE KEY INGREDIENTS FOR
BUSINESS SUCCESS
PART 2
There’s no secret formula that you’ll be inundated with online that contains calls to action course, if we’re talking about
guarantees business success, orders within minutes of your on every page, lead magnets marketing, it’s impossible to
however, in a series of articles website going live, think again. and videos. It should also have ignore social media channels
we are examining some of With websites, it’s not a case social proof that prove your like Facebook, Twitter, YouTube,
the proven key ingredients. of ‘build it and they will come’ customers love your products Instagram, and others
In part one we identified the because Google can take three and services.
importance of careful planning, or more months to index your You need to understand your Systemisation
developing a point of difference website content which means customers and tailor your How is it that some business
and a deep understanding you could be invisible on content to their needs. Only owners lack the marketing
of your numbers. In part two the internet for months after those businesses that really skills of their competitors,
we look at the importance of launching your website. know their customers deserve seem to work less hours but
having a marketing plan, a Don’t underestimate the their business. You need to
they are able to scale and grow
thorough understanding of your importance of your brand. know what is important to
them which could be price, their business? You’ll find these
competitors and developing It needs to resonate with
convenience, location, or same entrepreneurs have simplified,
systems. your target market and your
day service. You also need to systemised, and automated
ideal type of customer. Your
Marketing – Doom, marketing focus needs to be spell out your expertise and that large parts of their business so
Gloom or Boom? online because increasingly might mean building content their ‘machine’ runs on auto-
potential customers start that focuses on your niche pilot.
When you’re starting your markets or specialist services.
business, you need to wear a their research online and your The challenge for every
website is probably the first Don’t forget to heavily promote
lot of hats. Inventor, production your businesses points of business owner is to create
touch point with a potential
manager, receptionist, difference. and grow a business that works
new customer. You need to
bookkeeper and cleaner just to make a good first impression independent of them. That is,
If you haven’t already
name a few. You also need to fill and an amateurish website (or a business that doesn’t rely
downloaded our e-Book, ‘The 1
the role as marketing manager no website at all) is marketing Simple Secret to Growing Your on the owner’s technical skill
and successful businesses suicide in the digital age. Your Business’ you can download to produce the products and
have a clear marketing plan. In website is your online shopfront it for free from our website. It services. The objective should
the digital age, your marketing and if you want to appear on documents a ‘winning website be to create a valuable and
could be the difference between the first page of a Google formula’ that will help you build saleable asset.
Doom, Gloom and Boom. search you need original, a high performing website. Of
quality content including text, - Continued over page
Typically, business owners
videos, and images.
invest a huge amount of
time and money in their new In the internet fuelled world, a
business with research and great product or service isn’t
development, professional enough to build a successful
advice, a shop, or office fit business. Your website needs
out, plant and equipment to generate leads, store all
your content and be the hub of
plus lots of inventory to fill the
your marketing activities. You’ll
shelves. You might have the
probably find the majority of
best product or service in the your competitor’s websites are
industry but without marketing still just ‘online brochures’ that
you won’t sell a thing. If simply list the who what and
you’re expecting a queue of where of their business. They
customers and hockey stick treat their website as a cost
growth the moment you open not an investment, but you
the doors, you’re going to need to create a website that
be disappointed. If you think is a ‘lead generation machine’
The
BUSINESS
A C C E L E R A T O R
MAGAZINE
THE KEY INGREDIENTS FOR In a crowded market, it’s survival of the fittest,
fastest, and smartest. Smart business
BUSINESS SUCCESS
owners watch their competitor’s moves
PART 2
and eavesdrop on their products, pricing,
and marketing. It’s a form of espionage but
it’s legal and can give you a competitive
When Ray Kroc founded McDonalds, magnet that could be a valuable piece edge. Be careful not to become obsessive
he had no intention of working behind a of your content like an e-book, guide, about stalking your competition because all
restaurant counter, flipping hamburgers, or checklist, or free sample. The prospect’s the research takes time and can soak up
cooking fries. His vision was to systemise email address is automatically added resources and energy. You can learn from
the business and get hundreds, if not to your CRM system, and you can then their marketing strategies, product features
thousands of take away outlets to produce segment your customer database based and innovation plus you can also learn
consistent meals and service by getting on their areas of interest. You can then from their mistakes. Imitation is a form
team members to strictly follow his target them with tailored offers and then of flattery, but your competitors don’t like
processes and procedures. nurture the relationship by sending regular copycats. These type of businesses rarely
newsletters and offers. dominate their industry. Success doesn’t
Ray Kroc knew he couldn’t be in 100 stores
happen by chance and your competitors
at once so he developed and documented It sounds simple in theory, however, have a proven track record so they must be
systems and procedures on how to run the creating a business ‘machine’ that works doing something right.
business without his hands on involvement. like clockwork to produce consistent returns
It included how to fit out stores, hire and without your daily involvement takes a lot of As a guide, look at your main competitors
train staff, manage the inventory plus heat planning and hard work. A business without and:
the buns and cook the fries. Trained staff systems and automation won’t achieve its Look to cherry-pick the best parts
provide leverage to help grow the business, full potential. of their product features, systems,
the profits, and the business value. processes, and marketing.
Successful business owners work ON the
Understand Your
Get to know their pricing
Business, not just IN the business. They Competitors
don’t waste time on low level tasks that Monitor their marketing and special
Let’s face it, you would love to have your
offers.
could be delegated to team members or competitor’s best customers in your stable.
outsourced. This can only happen if you Don’t worry, the feeling is mutual! Understand their point of difference
identify every repeatable process or task and unique selling point.
Competition is healthy and exists for a
performed in the business and document Monitor their social media activities
how to perform them. You also need to good reason. It provides customers with
options and can be the driving force behind and access their newsletters.
list who is responsible for each step in
the process, what tools or resources are product development and improvement. A Read their blogs – do they reveal
to be used and when these tasks should price war can erupt that forces all players something about their future plans or
be performed. The mission is to create to try and reduce costs and ultimately the products.
a business that runs on auto-pilot so consumer wins. - Continued over page
management can work on developing and
growing the business.
Of course, once you systemise you can
then explore ways to automate your
processes and technology is the key. One
area you can focus on automating is your
marketing. Technology can help you grow
your list of customers by automatically
adding new contacts into your customer
relationship manager (CRM) system.
Successful businesses recognise their
customer database is a key business asset
and an up to date, growing customer list
is gold. It can make your business more
valuable and saleable.
Visitors to your website are encouraged to
exchange their contact details for a lead
The
BUSINESS
A C C E L E R A T O R
MAGAZINE
THE KEY INGREDIENTS FOR BUSINESS SUCCESS PART 2
Remember, if you get traction There are lots of tools you can a team that can grow the of templates, tools, and
in the market your competitors use to ‘spy’ on your competitors business. If you’re looking to checklists to help you get your
will turn their attention to your and as a guide, Google Alerts build a successful business, business off to a flying start.
marketing and social media will let you monitor every time we invite you to contact us We have consolidated all these
accounts. For that reason, your competitor is mentioned today. If you’re thinking of resources into our 32 page ‘New
when setting up your business online and send you an email starting your own business Business Starter Kit’ that you
make sure you protect your notification. You can also we have developed a range can download from our website.
brand and intellectual property monitor keywords with this tool.
with appropriate patents,
trademarks, and copyrights. Summary
Think carefully about what you Businesses don’t succeed
post on your social media by accident and yours won’t
accounts. either. To succeed you need
The forensic investigation a plan that combines strategy
starts with your competitor’s with technology and tools. You
website that should provide then need to implement!
the names of staff and the
Successful business owners
management team, some
monitor their competitors
history of the business and
details of their main products marketing and have their
and services. It might provide own clear marketing plan.
more information than you They develop a clear point of
expected and give you an difference, systemise their
insight into their strengths operations, track changes
and weaknesses. Are there in consumer behaviour and
any obvious weaknesses you carefully monitor industry
could exploit? They will almost trends. They research new and
certainly have social media emerging technology that could
accounts so you can explore revolutionise their business.
their Facebook, Instagram,
and Twitter accounts plus their Smart entrepreneurs recognise
LinkedIn profiles. These could the fact that they can’t do it
uncover a treasure trove of all on their own so they hire
information. the right people and build
The greatest compliment we receive from our clients is the referral of their friends, family
and business colleagues. Thank you for your support and trust.
The
BUSINESS
A C C E L E R A T O R
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GOVERNMENT LOCKS IN
DIRECTOR ID DEADLINE
Existing Company Directors Applications for a Director ID director ID, new directors or intentionally applying for
are required to apply for a are free and opened last month appointed between 1 multiple director IDs.
director identification number on the newly established November 2021 and 4 April
The government expects the
(Director ID) by 30 November Australian Business Registry 2022 will have just 28 days
director ID regime to help
2022. Directors of Indigenous Services (ABRS), a single after appointment to apply for
prevent illegal phoenixing by
corporations that are platform administered by the their director ID. New directors
ensuring directors can be
Commissioner of Taxation who are appointed from 5
governed by the Corporations traced across companies,
that brings together ASIC’s April 2022 will be required
(Aboriginal and Torres Strait while also preventing the use
31 business registers and the to apply for their director ID
Islander) Act 2006 (CATSI of false or fictitious identities.
Australian Business Register. before appointment.
Act) will be required to apply The new regime, passed in
for the unique identifier by 30 Directors must apply for their Under the law, directors who
Parliament in June last year,
November 2023. Director ID personally and fail to apply for a director ID
is expected to cover over 2.5
will be required to produce within the stipulated time
million directors, or roughly
their myGovID alongside two frame can face criminal or civil
10 per cent of Australia’s
identity documents from a list penalties of 5,000 penalty
25.7 million population. The
including their bank account units, which currently stands
director ID will be attached to
details, super account details, at $1.11 million. Directors of
a director permanently, even
ATO notice of assessment, a CATSI organisation can face
if they cease to be a director,
penalties of up to $200,000.
dividend statement, Centrelink change their name, or move
Penalties will also apply for
payment summary and PAYG interstate or overseas.
conduct that undermines the
payment summary.
new requirements, including Find out more about the
While existing directors will providing false identity director ID regime on the new
have a year to apply for their information to the registrar ABRS website.
The
BUSINESS
A C C E L E R A T O R
MAGAZINE
P R E PA R I N G T O S E L L
YOUR BUSINESS
At some point in time, you’re going to make
the decision to sell your business. It’s a big
decision and an emotional time because
in many cases you could be selling your
life’s work. It might have taken you 10,
20 or 30 years to build this asset so don’t
expect to sell it in 5 days.
It’s an emotional time because you’ll
reflect on the long hours, staff issues,
customer dramas and the financial risks
you took to get up and running. Sadly, in
business, passion and hard work doesn’t
always translate into profit. Working 7
days a week and forfeiting holidays won’t
necessarily add value to the business and
the buyers want to see financial proof that
justifies the asking price. The figures are
a reflection of the owner’s years of blood,
sweat and tears.
As the vendor, your objective is to maximise
the sale price and protect the goodwill you
have created. You also want to look after
your loyal staff and make sure they still so before you start talking to prospective
have a job. You also want to ensure your buyers or list the business for sale, you Return on Investment – Annual Profit
customers continue to get the service they
need to get a realistic valuation. It’s a good & EBIT (Earnings Before Interest and
deserve and have become accustomed
idea to consult with a business broker who Tax)
to over the years. On the other hand,
ideally specialises in your industry.
buyers view the purchase as a business Longevity and History of the Business
transaction. They are now taking on the There are several different business Reasons for Selling – Retirement vs
risk and possibly debt, so they expect a valuation methods, however, as a guide, Distressed Sale
reasonable return on their investment. most businesses are valued on a multiple
When assessing the value of a business, of gross revenue or net profit. The multiple The Business Assets – Equipment
most buyers are focused on the historic (age, working order and debt free)
can vary dramatically between industries.
revenue and profit figures. Unfortunately,
Generally speaking, most industries tend Value of Inventory and Intellectual
in many instances, the vendor let’s their
to follow a specific valuation method and Property
emotions cloud their judgment which
business brokers and valuers will usually
explains why they think the business is Projected Cash Flows & Value of
have access to industry data including
worth more than the market will pay. The Future Contracts
emotion creates commotion. recent sales of similar businesses.
Lease on the Premises – Terms and
You need to understand that selling While every business is different, the Transferability
your business is a process that can take valuation could hinge on several factors
Structure of the Sale and the Terms
months. You need to plan the sale if you including:
of Sale.
want to achieve the best possible outcome
Industry Type
for you, your staff, and your customers. A - Continued over page
lot of the focus will be on the sale price Size of Business – Total Revenue
The
BUSINESS
A C C E L E R A T O R
MAGAZINE
P R E PA R I N G T O S E L L
YOUR BUSINESS
Let’s examine some key while ‘hockey stick growth’ 2) Timing burnt out it’s highly unlikely
factors that impact on the will always make a business The timing of your sale can that you’ll keep growing the
value of a business. look attractive. If you’ve made also impact on the value of business so it’s best to sell
the decision to sell you can’t the business. For example, in when the key performance
1) Financial Performance afford to take your foot off the recessionary times, finance is indicators are all positive.
When assessing the value of a accelerator. You might be burnt generally harder to raise and If the business is in decline
business, potential buyers and out, but you can’t afford to let the appetite from buyers to the buyers will devalue the
their advisors will focus on your the business performance fall purchase businesses is usually operation and there are plenty
financial performance starting away. It has to be business as subdued. Again, business of bargain hunters looking for
with your top line revenue. They usual right up to settlement owners should always be distressed businesses with a
will compare your turnover to date because plenty of sales investor ready and it’s no ‘fire sale’ price tag.
prior year figures and buyers fall over at the eleventh hour. secret that a well prepared If you sense your sales or
ideally want to see a business business will generally sell profits are likely to tumble in
that is growing not slowing. When buyers are evaluating
faster and for more money. the future, it might be time
your business, they generally
Buyers will also focus on your require at least three years’ The law of supply and demand to cash in your chips. For
bottom line profit because influences prices and a market example, if a major competitor
worth of financial information
this is their likely return on saturated with a supply of or franchise is opening a new
and the more formal your
investment. In some industries similar types of businesses store in a prime location close
financial statements the better.
the business valuation is based will give buyers more options to you and they offer cheaper
You should provide financials
on a multiple of the annual and price negotiation power. prices, that might be the trigger
produced or certified by an
profit while other industries By contrast, if there is high to list your business for sale.
accountant, not internally
(such as professional service demand from buyers with a If you know one of your major
generated statements from
businesses) base the valuation shortage of businesses on customers is selling or closing
your accounting software. their business this could put
on a multiple of gross revenue. Certified financial statements the market, vendors should
In either case, vendors will get a premium sale price. your business at risk. If you
will help buyers with their know your landlord is planning
often talk the business up due diligence and if there’s The key takeaway here is,
and sell the growth potential, to hike up the rent or a major
one aspect that will slow or build a business with a
however, buyers are focused supplier is looking to raise their
jeopardise the sale, it’s issues competitive point of difference
on profits not potential. prices, your profitability could
with the figures. For that to differentiate your business
be under pressure and that will
reason, we recommend you from the rest of the pack.
When looking at the financial affect your business value. Of
performance of the business, always have your business Business owners often hang course, this type of information
trends are also very important. ‘investor ready’ that means on too long and defer the sale might be in the public domain,
Buyers want to see the having up-to-date financial until the ‘time is right’. If you so it also serves as a warning
revenue and profit on an statements (profit and loss want to achieve top dollar to buyers and reinforces the
upward trajectory. Revenue statement and balance sheet) on sale you need to take need for them to do exhaustive
that is flatlining or in decline plus income tax returns for the into account the market and due diligence when buying a
can be a red flag for buyers last 3 financial years. economic conditions. If you’re business.
- Continued over page
The
BUSINESS
A C C E L E R A T O R
MAGAZINE
P R E PA R I N G T O S E L L
YOUR BUSINESS
Finally, make sure you have have with your key customers? businesses which partially Summary
an understanding of the true If you’re exiting the business explains why franchises are so While it’s an emotional time
value of the business. Buyers with no handover period, popular in this country. They when selling your business,
will base their valuation on a who can the buyer turn to for want businesses that have it’s fundamentally a business
formula and if you are basing help in running the business? incorporated email marketing decision. Think about what
your valuation on emotional The lesson here is, develop a and automated systems into
makes your business valuable
factors (including an amount management succession plan their operation. Email marketing
to buyers including the
you need for retirement) then before going to market. is inexpensive and proven to
financials, your team, and
it’s going to be an exhaustive generate repeat business.
and draining process. You 4) Systems, Customer We hear all the talk of people your systems. The timing is
might miss engaging the right Database Systems being overwhelmed by their important so make sure you
buyer because your valuation In the digital and social age, inboxes, however, that doesn’t plan the process to ensure you
is unrealistic and months later your marketing can be the mean email marketing is no get the best financial outcome.
your next offer is below their difference between gloom, longer effective. By segregating If you’re thinking of selling
offer. doom, and boom. Given your your database based on your business, we invite you
3) A Great Team customers are the lifeblood of your customer’s preferences to consult with us. We can
the business, your customer you can cut through all the
In the eyes of the buyer, your help you get your financials
database is an extremely noise and tailor offers to their
staff could be one of your most up to date plus assist you to
valuable asset and potential specific interests. Of course,
valuable assets. In fact, the develop a plan and timeline.
buyers will be very interested nurturing the relationship with
definition of a great business Most importantly, we can also
in the size and depth of your your customers through regular
is one that doesn’t require the provide some tax effective
customer data. An up-to-date newsletters and updates will
input of your technical skills advice on how to structure the
database that includes your keep your brand top of mind.
on a daily basis. Successful deal.
business owners work ON customer’s email address,
the Business, not just IN the gender, age and buying
business and they don’t waste preferences will make your
time on low level tasks that business more attractive and
could be delegated to team valuable.
members or outsourced.
Buyers target systemised
Using the Ray Kroc (founder of
McDonalds) example, he was
only able to achieve his vision
of a systematised business
model through recruiting
and training team members
recruiting and training team
members to follow his
processes and procedures. The
staff gave him the leverage to
grow the business, the profits
and ultimately the business
value.
A quality and experienced team
can add value to the business
and smart buyers will focus
their attention on your staff
as part of their due diligence.
Are they good performers? Are
they loyal and will they stay
on? What relationships do they
The
BUSINESS
A C C E L E R A T O R
MAGAZINE
WHY DO NEW
BUSINESSES FAIL?
The COVID-19 pandemic has impacted
the way we live, work and play. For many,
working from home and hosting virtual
meetings with no commute is the new
norm. It’s almost like a decade of change
has been compressed into just 18 months.
The snap lockdowns produced a whirlwind of
change with curfews, QR codes and density
limits. Cash transactions are disappearing
in favour of electronic payments and the
‘buy now, pay later’ concept has exploded.
The business landscape has changed with
many businesses forced into hibernation
and sadly, some becoming extinct.
While the pandemic has posed a threat to
lives and livelihoods, there’s clear evidence
that people have struggled to balance
the hybrid work model particularly when Let’s look at some of the main reasons why
combined with home schooling duties. The businesses fail.
impact on people’s mental health is real 1. The Wrong Person
with increased anxiety, employee burnout,
absenteeism, and a drop in productivity. Many businesses fail simply because of
After 18 months of uncertainty people their founder. When you start a business,
are doing a lot of soul-searching and a you’re probably operating on a tight budget,
chunk of the population are re-evaluating so you have to multi-task and fill the roles of
inventor, production manager, receptionist, and appropriate insurances, finance and of
various parts of their lives including course the business structure.
their employment or self-employment. bookkeeper, cleaner, marketing manager
According to Microsoft’s 2021 Work Trend and webmaster. You have to juggle a lot of In the internet fuelled world, a great product
Index, 41% of the global workforce is likely balls in the air while you’re on the run. Too or service isn’t enough to build a successful
to consider leaving their current employer often you become a ‘jack of all trades and business. Enthusiasm, money, hard work,
within the next year, and 49% of those plan master of none’. talent and a great idea are usually ‘must
to make a major pivot or career transition. While entrepreneurship sounds attractive, haves’ but they don’t guarantee business
As a result, we expect a surge in business success. Being a good technician is not
most successful business owners are
start-ups in 2021/22. enough anymore as you need to be able
disciplined, determined, organised,
to manage the business including the
While the reasons to branch out and passionate, skilled, and creative. It can be
compliance aspects particularly if you plan
start a new business seem logical, be a fine line between success and failure,
to grow and employ staff.
warned because entrepreneurship isn’t and you need to be resilient because you’ll
need to make sacrifices, work extended Successful entrepreneurs work ON the
for everyone. It can be a hard road and
hours, and manage pressure and stress. business, not just IN the business. You
if you need supporting evidence, talk
might be a great technician but lack the
to any business owner about the roller New entrepreneurs can get swept up in the
accounting, legal, HR, marketing, social
coaster ride of the last 18 months. You excitement of starting their own business
media, and website skills. Understand your
need to be resilient and have more than and in the rush, they bypass some important
strengths and delegate your weaknesses.
just courage, a good idea and plenty of steps and check points. Attention to detail
passion. Statistically speaking, the survival It might cost you more in the short term,
is important and there are a number of
rate of new businesses isn’t encouraging key decisions to be made in the set up but your opening moves are critical.
with around 20% failing in the first year and phase including business registrations, - Continued over page
around 50% not surviving beyond year five. choice of accounting software, adequate
The
BUSINESS
A C C E L E R A T O R
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WHY DO NEW
BUSINESSES FAIL?
Rushing the set-up process It should also identify the
or pulling the wrong rein can likely problems you might
have catastrophic financial encounter and how you plan to
consequences. overcome them. Your business
plan should list key tasks, a
You also need to be starting
timeline for implementation
the business for the right and identify who is responsible
reasons. If your motivation is for performing the tasks.
to make lots of money, stop The plan should incorporate
having to answer to the boss or a marketing plan and a
have more freedom and time financial plan including a cash
with your family - be prepared flow forecast for the first 12
for a long and winding road. It’s months of operation. Given
not that easy and only a small you’re starting the business
percentage of business owners from scratch, you’ll need to
get to enjoy those benefits. make a lot of assumptions but
It can take 10 years of toil to without a financial forecast you
become an ‘overnight success’. can’t prove the viability of the
The right reasons for starting business.
a business might include the
To secure finance from a bank Could you offer additional 3. Lack of Cash Flow or
fact that you have a real love
or third party you’ll need a
for what you are doing and
professional plan. You could
related services to increase Working Capital
based on your research there’s your revenue and are there new
burn a lot of cash and probably Plenty of start-ups crash
a market for your product or markets you could try without
burn yourself out trying to push because they run out of cash.
service. If you have the skills, stretching your resources or
square pegs into round holes This can often be a symptom
understand the risks, and have finances? Punch the changes
so if the numbers don’t stack of bigger problems like bad
the DNA of an entrepreneur, into your budget and see if that
up it’s time to go back to the financial management, a lack
make sure you also have the makes the business viable.
drawing board. Think about of planning, poor marketing
funds and business plan to putting your largest expenses Planning involves researching or a bad product or the wrong
bring the business to life. under the microscope and see the market including the prices location.
if they can get a ‘haircut’. What and your competitors. You need
2. Failing to Plan is about your prices, could the While it’s never easy to do
to know the suppliers, their
Planning to Fail market handle an increase and pricing plus study the industry
financial forecasts for a
In business and in life, failing what impact would that have business with no trading
trends and latest technology
to plan is planning to fail. on your projected profit? history, you need to make
and software. In business it’s
Building a business is akin to a lot of assumptions and
Could you source cheaper survival of the fittest, fastest,
building a house that requires entrepreneurs often make
inputs from suppliers without and smartest so do your
solid foundations and a master two obvious mistakes when
compromising the quality of homework and get educated on
plan. Your business plan must the things that matter. Monitor preparing their cash flow
your products? Could you
be realistic which requires your competitors online and budget. They:
manage to operate from
you to make forecasts and smaller or cheaper premises see what’s working for them a) Overestimate their
projections using data from in the short term? Could and learn from their mistakes. projected revenue
your research. It is the blueprint you outsource some of your Develop a point of difference
b) Underestimate their
for your business success and marketing? Could you lease and think about what you can
expenses
details your goals and how you rather than purchase some of innovate with your products,
plan to meet those goals. your equipment or vehicles? services, and marketing. - Continued over pageThe
BUSINESS
A C C E L E R A T O R
MAGAZINE
WHY DO NEW
BUSINESSES FAIL?
When preparing sales we often see the budget for and internet, insurance, rates don’t have a marketing plan?
forecasts, you need to look product development and etc.) before you work on your It needs to be a priority not
at the best and worst case shop fit out costs blow out. variable costs that change something you piece together
scenarios. You then need to Marketing costs are hard to based on your level of sales. just before you launch the
ensure you have the financial pinpoint with accuracy and For example, how much business. The plan should
resources to survive the worst equipment prices can change. stock do you order for your detail how you plan to use both
case scenario. You also need Again, your cash flow budget initial order? Stock is really digital and traditional (offline)
to understand the difference is critical, and it should your money tied up on the tactics and if you’re expecting
between sales and cash flow. calculate how much money shelves or in the warehouse, a queue of customers the
What percentage of sales you will have on hand at the so inventory control is a crucial moment you open your doors,
will be in cash and what end of each month. You need part of business management. you’re in for a shock. If you
percentage will be on credit to identify any shortfall well in think all you need to do is
with customer accounts? For advance to arrange finance No matter how brilliant your build a website and customers
the customers you extend including an extension of your idea, if you can’t make it will come, think again. You’re
credit to, what are their terms overdraft or new loan. profitable or scalable, you won’t not going to be inundated with
and when will you receive have a successful business. As online orders within days of
Build your cash flow budget accountants, we can help you
payment? A miscalculation your website going live because
commencing with your one-off do some financial modelling
can trigger an immediate Google can take three or more
start-up costs and don’t forget and prepare forecasts based
need for finance and banks months to index your content.
brand development, website, on ‘what if’ scenarios.
generally don’t respond well to This means your content could
IT requirements, shop fit out,
urgent calls for finance. 4. Marketing, Website be invisible on the internet for
equipment, furniture, and
months after going live.
In start-up mode, you’ll always fittings. Factor in professional & Social Media
find there are extra expenses fees and the cost of licences Increasingly your marketing
you didn’t factor into your and business registrations. If your business relies on foot
focus needs to be online
budget. These unexpected From there, identify your traffic, the wrong location can
because potential customers
costs always pop up and fixed costs (rent, phone prove a disaster. In the digital
start their research online and
age, if your business relies on your website is probably going
on-line traffic, a poor website to be the first touch point with
or a lack of social media them. You only get one chance
activity could prove fatal. to make a good first impression
Most start-up entrepreneurs and an amateurish website (or
invest a huge amount of no website at all) is marketing
time and money in their suicide in the digital age. The
new venture with research web is full of poor websites
and development, a shop or that are nothing more than
office fit out, new plant and ‘online brochures’ that simply
equipment, professional fees list the who what and where of
for accounting and legal advice the business. If you’re looking
plus inventory. These may well to penetrate the market with
be essential, however, too your start up, your website has
often new business owners to be outstanding with calls
put the cart before the horse to action on every page, lead
because all the planning magnets and videos. As such,
and investment will amount you need to plan the website
to nothing if you don’t have build early in the process.
customers.
Let’s be honest, how can you - Continued over page
estimate your sales if youThe
BUSINESS
A C C E L E R A T O R
MAGAZINE
WHY DO NEW BUSINESSES FAIL?
Think about your ideal type of you can’t afford to ignore and a warning for budding of demand are other factors.
customer and produce content Facebook if 70% of your target entrepreneurs looking to start a Sometimes expanding too
(text on website pages, videos, audience are active users. business. quickly can bring a business to
blog posts, articles, white It’s horses for courses and its knees and conflict between
You need a business plan
papers, webinars, and e-books) strategic marketing involves key people is a time bomb ready
that details the strategies,
that is relevant, interesting, and delivering targeted messages tools, technology, tactics, and to explode. Many bankruptcies
valuable to them. The mission at the right frequency using resources you plan to use. have been caused by rapidly
is to appear on the first page of the appropriate resources. The Your game plan must prove the expanding businesses who
Google searches for keywords beauty of digital marketing is business is financially viable so simply couldn’t keep up with
and phrases, but you need to it’s a level playing field that it must incorporate a financial the production requirements,
understand, search engine allows start-ups to compete plan and marketing plan raise more capital or have the
optimisation (SEO) requires with established high profile big together with a timeline of when right systems in place to cope
research and planning. The businesses. tasks should be completed. with a surge in sales. Running a
purpose is to communicate Successful business owners business can be a roller coaster
If you haven’t already
your expertise, build trust research new and emerging ride and high speed may
downloaded our e-Book, ‘The 1
and demonstrate to potential technology that could provide thrills, but it can also
Simple Secret to Growing Your
customers how you can help revolutionise their industry and kill. Burn out will bring a start-
Business’ you can download
them. Think about what topics monitor their competitors. They up business to a grinding halt.
it for free from our website. It
and issues appeal to your target develop points of difference,
documents a ‘winning website Smart entrepreneurs recognise
market because the content is systemise their operations,
formula’ that will help you the fact that they can’t do it all
what fuels your social media, track changes in consumer
design a high performing on their own so they hire the
blogs, webinars, and emails. behaviour and carefully monitor
website. right people and build a team
Ideally, your content should be industry trends. that can grow the business.
original, educational, helpful, Summary If you’re thinking of starting
or entertaining, rather than The list of reasons why
Businesses don’t succeed by businesses and particularly your own business, we have
promotional or sales-oriented.
accident and yours won’t either. start-ups fail is long. The wrong developed a range of templates,
You can’t afford to ignore social Without doubt, planning is the person with a lack of a lack of tools, and checklists to help you
media channels like Facebook, most important ingredient and management skill, inadequate get your business off to a flying
Instagram, YouTube, Twitter the adage, ‘people don’t plan cash reserves, poor planning start. We have consolidated all
and TikTok but you need to to fail, they just fail to plan’ and the wrong marketing mix these resources into our 32
research which platforms certainly applies. A lot of start- are all red flags. The wrong page ‘New Business Starter Kit’
your target audience engage ups fail because the founder location, no website or social that you can download from
with because there’s no point simply didn’t do enough media, poor quality products, our website. If you’re looking to
choosing Twitter if your target research and planning. This the wrong pricing, bad timing build a successful business, we
audience isn’t on it. Similarly, serves as both valuable advice (economic issues) and a lack invite you to contact us today.The
BUSINESS
A C C E L E R A T O R
MAGAZINE
Suite 4, 210-214 Lower Heidelberg Road, East Ivanhoe 3079
PO Box 2234, East Ivanhoe 3079
Phone: 03 9497 2222 Fax: 03 9497 4477
IMPORTANT DISCLAIMER: This newsletter is issued as a guide to clients and for their private information. This newsletter does not constitute advice. Clients
should not act solely on the basis of the material contained in this newsletter. Items herein are general comments only and do not convey advice per se. Also
changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of these areas. The information
provided in this bulletin is not considered financial product advice for the purposes of the Corporations Act 2001.You can also read
