Why So Many Small Businesses Die Prematurely

BusinessSmall businesses are more prevalent in Australia today than ever before. Not since every member of the community had their own stall bartering for daily necessities in the streets has small business been so common as a means for income for so many people, however the rules and regulations have changed drastically, and the cost of running a small business is causing its renewed inception to become almost obsolete again.

Integra Business Accounting itself started as a small business and prides itself on the ability to assist its small business clientele with experience and valuable financial advice.

With so many new small businesses owners popping up and with government grants and incentives to get them moving forward, why is it that so many close their doors prematurely? What is causing the death of small business?

  • Atrophy
  • Neglect
  • Stress

Atrophy

The drying up of all funds and capital. A common misconception of small business start-up is that it will not cost a lot to get up and running, but once all the ‘little’ costs are added up, there is often not a lot of wriggle room to actually run the business for long. Most small businesses only have one or two people that are working for free to find customers and deliver a quality product, resulting in a loss of income as well.

Neglect

The sales predictions and market research was wrong, or wasn’t even done and now nobody wants the product. If it can be adapted to suit, re-branded, re-priced or made more appealing to a different target market at a minimal cost, that’s great! But if your product doesn’t have that kind of versatility and you cannot afford to make it for less, then you may find you are stuck with a lot of stock and no one wanting to buy it.

Stress

The biggest instigator of giving up. When it all gets too hard, too unpredictable, too chaotic or too ‘much’, the business owner cuts their losses and shuts their doors. Although our government strives to provide numerous resources and assistance channels for small business owners, at the end of the day, it is all down to the business owner to find and utilise them. By this time, their business is usually running at a loss and their mental health is suffering so quitting whilst they are ahead seems a much safer, more saner idea.

But Your Business Can Be Different – With Help From Integra Business Accounting

Integra Business Accountants thrive on the success of their clients’ business and work with you to ensure your business is running as efficiently as possible. Make accounting one less stress in running your business and call Integra on 9527 3071 today.