Income Resource Club > Business
How To Achieve Financial Freedom
Through Business
Members of Income Resource Club can access over 230 printed interviews, books, audio interviews, video interviews, across all facets of Business. The materials that you can access range from how to plan your business, how to market it, all the way through to how to manage human resources and sales.
You also gain access to our committed business expert contributors and access to a network of like minded business people that can express your path to financial success through Business.
Our expert Business contributors cover areas such as:
- Business Planning
- Customer Service
- Expansion
- Finance/Cashflow
- Franchising
- Human Resources
- Management
- Marketing/Branding
- Operations/Systems
- Retail
- Sales
- Other Business Pages
If you would like to download the Audio interview with Entrepreneur and Business Guru Richard Branson plus 4 other gifts valued at over $147, click here.
To gain access to more ebooks, book summaries, audio and video interviews on trading, try our $1 membership test drive offer.
The risk of small businesses failing has long been overstated, and a foremost debt agency has set straight the myth that start-up operators are destined to go under in the first year of operation.
These business myths are to a certain extent like urban myths. They are usually embellished stories told by somebody's uncle's best friend, a person of indubitable authority. These stories have stood the test of time and have been perpetuated for so many generations that they're automatically accepted as fact. That is, until one day when the real facts emerge and the myth falls into disrepute. Today is going to be one of those days. Today will see the demise of one of Australia's most outstanding business myths.
A question for you: What percentage of businesses fail in their first year of operation in Australia?
It is not a trick question. What kind of numbers have you been told? 50%? 60%? 70+%?
Take a second to think about where you heard that statistic. Was it from a friend? A fellow business owner? A consultant? An accountant? Someone else?
To substantiate any 'fact' or statistic you need to go to the people who are essentially in a position to know the truth. In the case of business failure rates that would be the Australian Bureau of Statistics (ABS) and respective State government business departments or Credit reference checking agency Veda Advantage, formerly Baycorp who completed a recent study.
The Veda Advantage study of businesses entering financial administration in 2006-07 showed the following:
- Only 1.5 per cent of businesses close within this period.
- The learning curve for a growing business looks extraordinarily steep, but after the fourth or fifth year, the business challenges diminish.
- It may seem like an effort at the time, but once a business reaches a certain point in its development, it's time to take a more mature style of financial operation - or risk all of the upside of the establishment period.
- The study suggests that better cash-flow management and properly managed credit systems are essential to fail-proof a business during the growth phase.
- The paper found about 7.5 per cent of businesses ended each year, with cessations accounting for about 80 per cent, and changes in ownership the remainder.
- Less than 0.5 per cent of businesses exit each year due to catastrophic failure - bankruptcy or liquidation.
The point that needs to be emphasised is that most exits are not firm failures.
The closer you look at the exits, the more it becomes likely that some business owners find the challenges of growing a business, employing staff, paying taxes, getting entangled in government red tape and managing money all too hard. And a job with four weeks holiday and sick leave eventually looks too attractive to ignore.
If you would like to download the Audio interview with Entrepreneur and Business Guru Richard Branson plus 4 other gifts valued at over $147, click here.
To gain access to more ebooks, book summaries, audio and video interviews on trading, try our $1 membership test drive offer.
An Australian Bureau of Statistics analysis of business exits pinpointed the main reason for the discontinuance of the operation.
"The most common reason for businesses to fail is that they've undercapitalised, or don't have enough money on hand to keep going," it reported. "That often is the result of insufficient planning or the lack of a business plan."
The report listed the common reasons for business failure:
- Lack of financial planning and review.
- Over-dependence on specific individuals in the business.
- Owners concentrating on the technical, rather than the strategic work at hand.
- Inadequate capitalisation.
- Lack of management systems.
- Lack of vision, purpose, or principles.
- Poor market segmentation and/or strategy.
- Failure to establish and/or communicate company goals.
- Competition or lack of market knowledge.
- Absence of standard quality program.
Surprised? Take a moment to really think about it. How will knowing these statistics change your perspective on being in business?
If we summarise these reports and statistics we can see that planning and accessing expert help for key areas such as marketing and financial management are essential to avoid failure.
If you would like to download the Audio interview with Entrepreneur and Business Guru Richard Branson plus 4 other gifts valued at over $147, click here.
To gain access to more ebooks, book summaries, audio and video interviews on trading, try our $1 membership test drive offer.
We now hope that we have alleviated some of the fears of starting your own business and if you are already running a business provide you with valuable information to take it to the next level of success.
Below we have listed some further business pages which will assist both the new start up and existing business operators:
- Are you Ready for Business?
- Starting, buying or taking over the family business.
- Small Business Lifestyle
- A study on small business and the lifestyle rewards.
- Creating a Business Plan
- Why do a business plan?
- Buying a Business
- Considerations to be made.
- Checklist for Business Start-Ups
- Where to start and what to look for.
- Franchising
- Thinking of becoming a Franchise?
If you would like to download the Audio interview with Entrepreneur and Business Guru Richard Branson plus 4 other gifts valued at over $147, click here.
To gain access to more ebooks, book summaries, audio and video interviews on trading, try our $1 membership test drive offer.