Aperture Accounting – Your Vision, Our Focus

Why do so many small-medium businesses fail to succeed?

Causes of company failure are varied, however, a 2011-12 report into corporate insolvencies by the Australian Securities and Investments Commission found:

• 44 per cent suffered poor strategic management

• 40 per cent fell victim to inadequate cash flow or high cash use

• 33 per cent went under because of trading losses

One could argue that the first point above most likely lead to points 2 & 3 – regardless of how you look at it, the overall theme for failure is lack of proper insight by the business.

Business owners, in general, are very good at the business of doing what they do best – for example, an electrician is very good at being an electrician, a café owner know how to make great coffee, an engineering shop know how to fabricate just about anything.

However, most business owners do know how to run their businesses and for good reason – most likely no one has ever shown them how to.