Starting up a business is one of the toughest decisions and undertaking anyone can make, but yet it can potentially prove to be one of the best, and most rewarding. Statistics unfortunately show that 20% of new businesses formed in the UK will fail in the first year alone, rising to nearer 50% within 2 years.
There are a number of reasons a business will fail, but many of the risks could be reduced, or even avoided altogether, if any new venture is approached in the right way, and with the correct support and professional advisors behind you. A new business owner should, but will not always, consider the following key areas:
1. A well thought out business plan
2. Detailed knowledge of your market and competition
3. Strength of business management skills and support lines
4. Business structuring and other legalities
5. Full utilization of social media and online marketing
6. The true cost of bureaucracy and regulation
7. Cash flow forecasts and financial management
No matter how strong a concept you think you have, coming across hurdles that your experience just doesn’t allow you to deal with, and not fully considering any of the key core areas listed above, could cost you your business before it has even had a chance.
Running a business can be a lonely existence and struggle at times. Therefore, having someone who is not directly involved, but who can be objective, able to discuss technical issues, to bounce ideas around with, and also more importantly, ask the questions that nobody else will ask, is invaluable.
Business mentoring can provide this crucial support line to help strengthen both your business and your own skill set, and prove to be invaluable in getting a new business off the ground, with strong foundations to give it every chance to accomplish and fulfill its potential to succeed in the long term.
A business mentor must be honest, with an unbiased view, in that they want to support your vision, but we will provide a challenge to your thinking and ideas.
This means they will look to understand your goals, but also question and challenge to assist you to achieve them. A good accountant will have all of these attributes and be able to provide the expert advice required.
An accountant should be more than a bean counter, but someone who will actively seek to take an interest in your business, to listen, understand and provide an objective view and opinion. Not to put obstacles in front of your vision, but to help steer a course through the hidden dangers that being in business will inevitably bring.
In summary, they will ensure the key areas have been thought through and considered in full, they will seek to help business owners achieve their goals by assisting to remove any barriers to performance, and releasing the potential in your ideas and concept.
This provides a basic outline of the advantages of mentoring, and the role a good accountant as a professional advisor plays. If you require any advice, whether you are just looking to start up or are a current business owner, please contact Raffingers.
Roy Butcher is an Associate Partner at Raffingers. Contact: firstname.lastname@example.org