On 15 August 2023, John Refalo who is one of our Directors from BYRONS Recovery presented to Fairfield City HQ about ‘Avoiding Business Failure’.
“Starting and running a business is the dream for many people. At the same time, it can also be one of the biggest risks that someone can take. Having seen why businesses fail, it is important to look at the financial side of a business. By presenting on this topic, I hope that business owners or those starting out, can and will learn key skills to give their businesses (or business ideas) the best chance of survival and hopefully avoid business failure” said John Refalo, Director at BYRONS Recovery.
As a Liquidator who has been practicing in insolvency for over 16 years, John has assisted countless businesses with either restructuring or exiting properly.
This seminar aimed to build awareness for entrepreneurs and business owners about some of the fundamental skills needed when starting and running a business, regardless of where their business or idea is at. These skills will also give entrepreneurs and business owners the best chance to avoid becoming a statistic of business failure. Some of these fundamental skills include:
- The importance of a business plan
Documenting the path that your business will take, encourages business owners to know about every aspect of their business beyond what it is that they do best. A good business plan will help owners to have an appreciation for their staffing, marketing and finance needs as well as looking opportunities and threats to their business.
Setting out the projected income and expenses for a period of time will help business owners determine when they expect to go through the good times and the ‘not-so-good’ times. Being armed with this information can help business owners save for that “rainy day” and minimise the surprises along the way.
Business owners need to set the price for their goods and/or services appropriately so that they are making a profit – this is why they are in business, to begin with!
- Separation of business and personal expenditure
When business owners start a company, they need to understand that a company is a separate legal entity. If a business owner takes funds from their company for personal use, then it creates a loan account that has to be repaid back. Also, importantly, it takes funds away from the business which can be used for growth and opportunities.
- Seeking professional advice
Business owners wear many hats but most of the time, they are not qualified professionals in certain fields. Seeking professional advice helps to maintain compliance and ensure that the business is on the right track to success.
John points out that there are some great valuable resources for entrepreneurs and business owners to use that are freely available:
- gov.au is a great starting point and includes:
A copy of the “Avoiding Business Failure” presentation can be downloaded here.
Please contact the team at BYRONS should you want to know more about any of the measures above and how they may apply to your business.
BYRONS are leading accounting specialists and as your trusted advisors assist you with your business.