Survival tips for small and seasonal businesses
There’s a widespread myth that most start up companies fail in their first year of business. The truth is that just over half (51%) make it past the five-year mark.
However, did you know that a staggering 88% of businesses that use online accounting software Xero, get beyond that five-year milestone?
After the initial period of getting established, the longer the doors of a business stay open, the less likely they are ever to close. Here are some factors small and seasonal businesses striving for sustainability should bear in mind.
Cash flow can be hard to sustain. Indeed, many business failures can be attributed to cash flow problems. So it’s important, particularly within seasonal businesses, to manage this carefully. Proper cash flow management and business forecasting will help you prepare for the future and tackle any problems that may arise.
Most businesses experience peaks and troughs in their income. So it’s important to remember that income needs to stretch across the entire year. Spread the wealth by diversifying business streams where possible. For example, tax accountants can take on payroll work to keep them busy the remainder of the year.
Prepare for the unexpected
Most companies suffer some form of major disruption at one time or another. A simple bout of freak weather can affect deliveries or make it difficult for employees to get to work. Cloud accounting software enables you to access orders, essential accounting information and customer and supplier details from anywhere. This means those unexpected ‘acts of god’ are less likely to disrupt your business.
Don’t just survive, thrive
Small businesses success is all about making smart choices and implementing efficient solutions. Businesses that use cloud apps, such as Xero, generally grow 30% faster than those that don’t. Now that’s a smart choice.