Whatever the reasons are for starting up or buying a business, owners to be or current owners must bear in mind that, apart from such external factors as economic climate and location, there are also a number of factors which play a vital role in the degree of success achieved by a business.
- Adequate capital to avoid a crippling debt burden
- Positive attitude towards business demands and relationships
- Knowledge and understanding of sound business management practices.
- Administrative ability to put those practices into operation.
- The knowledge, understanding and application of sound business management practices together with adequate finance are essential, if a business is to achieve maximum profitability and avoid mediocrity or failure.
We will cover the following matters:
- Setting up or buying a business.
- Review of business relationships, such as those with customers, suppliers and the bank. Terms like mortgages, charges, guarantees and “all money clauses” which are mentioned in bank contracts will be covered.
- The accountant’s role.
- Factors to consider when a business is distressed or about to fail and the mechanisms available for rehabilitation. In other words “Before any business proprietor decided to ‘call it a day’ he/she should seek advice from a specialist and, if the business is salvageable, set in place a programme for its rehabilitation. More often than not there is a solution for every financial problem.
Remember a business is dynamic; the learning process is endless. Once you find that you can learn no more, it is probably time to retire.