Small business is not a job or a career, it is, in most cases a lifestyle choice. In fact it could be considered a family member

• Small business is not predictable - it may be successful or it may not, the reasons for success or failure are unlimited
• The odds for success in small business are improved by:

1. CASHFLOW MANAGEMENT
2. Good planning
3. Attention to detail
4. Good staff
5. A strong relationship with customers and suppliers (often forgotten)
6. A good relationship with bank selected by the business
7. A clear understanding of the business goals
8. The owner/s must enjoy being involved - not necessary that everyday is wonderful, but on balance, that 80% of the time it is fulfilling and enjoyable.
9. The owners family is supportive
10. The owner must be flexible - enjoy the good times, however able to pull back in the bad times

Business Failure is more likely when the following occurs:

1. Over commitment – eg. Too many cars
2. The owners spend too much - eg. The GST collected is not yours, it belongs to the Government
3. Other people’s money is not put aside:

-       Tax from employee’s wages

-       Superannuation

-       GST

• The owners spend the profit/surplus/drawings and forget that that this is their NETT income, not gross- what about the tax!
• Don’t be the big man about town, ego kills small businesses, generous donations of cash or goods is wonderful, but it should be done from achieved profits!
• Bookkeeping and record keeping are a legal requirement, but more importantly – you must know where you are financially, as every decision you make has financial impacts.