Research, Research & Research – And Adapt
This list of companies is quite impressive: Blockbuster Video, Xerox, Kodak, U.S. Steel, Polaroid, Borders Books, Sears, Pan-Am, Hummer, Blackberry, Abercrombie & Fitch, JC Penny, and many other major brand-name companies. These companies used to be considered some of the brightest and best in their industry. However, their failure to assimilate and adapt led to their ultimate or eventual demise. Tunnel vision is common today. When one has a successful business, the assumption is often made to just keep doing what has always been done and those profits will continue to pour in.
Successful companies (and individuals) need a business plan to succeed. Companies need to be aware of technological changes and how those changes affect their industry, customer needs and wants, and consumer trends. Tech.co reported in January 2016 that the major contributors to the failure of start-ups include incompetence (46%), lack of managerial experience (30%), and lack of experiences with goods and services.
Incompetence included emotional pricing, living beyond the means of the business, nonpayment of taxes, lack of planning, no knowledge of financing, and no experience with record keeping. Bottom line: A very experienced accountant and tax professional can be a life-saver!
Lack of managerial experience included poor granting of credit, expanding too rapidly, and inadequate borrowing practices. Again, having an experienced accountant and tax professional could be the difference.
Lack of experiences with goods and services included carry inadequate (or excessive inventory), no knowledge of suppliers, and wasted advertising budget. Yes, once again having an experienced accountant and tax professional could be the difference between success and failure.
Planning Tip: Continuous survey your customers so that you understand their needs and wants and rely upon experienced professionals to help you manage your business or personal finances. Planning for the future is a MUST for business owners and individuals.
If you would like to discuss your business or personal tax planning, tax preparation and other financial concerns with an experienced tax professional, we invite you to call 610-594-2601 today to make an appointment at our Exton PA CPA office to discuss your situation. You can also schedule a consultation at Click Here.