Brealey Quill Kenny Accountants, Perth discuss 5 Key Components of being in Business

So often we are told “more than 50% of businesses fail in the first year”. At Brealey Quill Kenny we don’t subscribe to that theory. For the vast majority of businesses that seek professional guidance, adhere to basic principles, set realistic goals and plan their way forward, the future is much brighter.

We often advise clients on what we believe are the key components in ensuring a business is planning for a successful future.

Growth

This component covers strategies including identifying customer needs, target market, competitive advantage, branding and marketing. Growth can be achieved through financial and non-financial strategies.

Profitability

Profit is generally described as a measurement of the financial success (or failure) of a business. However, profitability means much more. Analysis and monitoring of the processes within a business are critical factors in determining a business’s profitability, as opposed to simply looking at the profit figure being reported.

Cashflow

Being profitable does not always ensure success. Even profitable businesses can fail if they are unable to generate sufficient cash to remain liquid. Assessing the amounts, timing and unpredictability of cash flow is paramount in planning for your business.

Succession Planning

Otherwise known as “Replacement Planning”, the strategy for passing on leadership roles and sometimes ownership ensures that the business can continue to run successfully after key people move on to new opportunities, retire or pass away.

Asset Protection

Often forgotten (or left too late), business owners should follow three key steps:

  1. Be Profitable
  2. Use the profits wisely through sound investment in assets
  3. PROTECT those assets

At Brealey Quill Kenny, we work with new and existing business owners in creating and monitoring business plans and strategies, tailor made for individual needs. If you would like assistance in this area, please do not hesitate to contact our office.

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