The statistics on small businesses going broke in the first 12 months of operation are nothing short of obscene and seriously scary. In Australia and other western countries such as the United States 70% of all small businesses fail within the first 12 months of operation but let me tell you from experience, surviving after that 12 months is no less harrowing.
After 10 years of running four small businesses and creating them from scratch I can tell you with some authority, that I did not do this on my own. In fact, I reckon I have made every mistake in the book on how not to run a small business, but yet I have still survived. The secret to staying in business is all down to being able to talk to my ten Small Business Mastermind Advisers.
My ten Small Business Mastermind Advisers are there as my support team in helping me make the right decisions. See often when we make a decision in small business, it might be right at the time but down the track it can do you a lot of harm. Having your small business mastermind advisers on call, you can simply call them and ask them the consequences of the choices you are about to make.
For example, having the right business structure and putting your business assets in the right structure will play a major roll in the success of your business when you decide to exit the business. Se e most people who go into business only ever think of the business as a job they do not look at it from the perspective of how they will exit the business when they have built it into an enterprise.
Those ten small business mastermind advisers will help you to ensure that you have met your obligations and that there are no hidden issues that might come up in the future for your business. For example, we recently chose to sell off our car cleaning business as my wife wanted to pursue something different. Because of the way I had structured some of the trademarks in my company that related to hers, when we went and sold the business it created a number of headaches in the sale process. Essentially we had to shift ownership of those trademarks to her company prior to the sale which created a number of financial costs that we have had to endure even though my company never made any money. This issue arose simply because in the early days, I did not have my 10 Small Business Mastermind Advisers to tell me how my choices would impact on me in the future.
Adviser 1: Accountant
In business today, with the complexities of superannuation, sales tax or GST, income tax and all the other taxes out there an accountant is a must. As a small business owner you need to find an accountant that is a small business specialist and is proactive in working with you.
What I have found is that some accountants will only do what you ask them to do and will not step in and give you advice if you do not ask. You want an accountant that if they see you are doing something wrong then they will tell you without you asking.
The other thing you will need to ensure is that you hire an accountant that outlines where all of their hours are going. It is very easy for you with accountants and solicitors to end up with 5 or 6 figure bills.