According to the Business Connect program, which is funded by the NSW Government and provides business advisory services and business skills training, many businesses fail because of three key reasons:
1. They don’t know how to get new customers – this is simply poor marketing skills and a belief that the most important part of business can be ignored. This is often not taught and people can put too much faith in word of mouth.
2. Cash flow issues – usually poor planning and sometimes not monitoring all costs, as well as not raising prices. Often people don’t even have forecast tools.
3. Not lodging BAS and tax returns – typically, these businesses have no relationship with an accountant and are too busy, or have avoidance issues at play. Sometimes, their accountant does not provide a service that can help them comply, save money, and help them grow their business.
Usually, a visit to a reliable accountant can correct these issues, provided it’s not left too late. Being in business means monitoring all of these.
Contact us for a second opinion at TaxAssist Accountants in Sydney, Mid North Coast, or Gold Coast.
Date published 27 Sep 2017 | Last updated 31 Jan 2025
This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.
