Mistakes business owners make
SiDCOR Chartered Accountants
With over one million small businesses in Australia, how many of them do you think believe investing in their business is a priority?
If you think 50% or more then you’re wrong. Buying the great Australian property dream is what investing means to many people – including SME's.
Ask them to put $50k into their business and first gut reaction is when can I get my money back? Will I ever see it again?
The mistake SME's make is they don't think investing into the most important asset they have (their business) is actually investing. Yet your small to medium business is your life blood, it’s how you fund your lifestyle, your home, buying further property and so on.
Why do many think this way? Maybe they have made bad choices in the past and did not, tragically, plan where the money will be spent in their business and why they were spending it.
You have all heard of strategic planning – it’s a big undertaking, I know. But to simplify it a little here is a tip….
Give the investing you make in your business CONTEXT. The content of your business is everything you ‘do’ – everything you get caught up in in the day to day running of your business.
Context gives that content meaning.
Make a long term plan. Be clear on the commercial vision for the business and what are you building and working towards.
You might want to retire in 10 years. That should impact the way you do things today. You need at least a 5 to 10-year plan...not 6 months, 12 months or 2 years. That is what so many people do – including me when I was first starting in business.
Plan with the end in mind as we always underestimate what we will achieve over a 10 year period, and overestimate what we will achieve in a shorter 12 month period.