5 Warning Signs of Risk for Small Businesses

The owner of a small business or startup company needs to carefully monitor his business for warning signs of trouble. The majority of new businesses fail within three to five years. A small business does not have nearly the same margin for error as a large, established firm, and can much more easily be financially derailed into unprofitability or bankruptcy. If a small, relatively new business runs into financial problems, as the result of operational problems or a general industry or overall economic downturn, it is unlikely the business owner will have the same ability as a larger company with a longer history to access credit sufficient to weather the storm.

Another factor that makes a small business more vulnerable than a larger one is a small business generally has fewer sources of revenue than larger, more well-established companies. For example, a local “Mom and Pop” flower store with only one location in one city is in a much more precarious position in the marketplace than a nationwide chain of florist operations. The nationwide chain can make up for falling revenues in one area of the country with positive revenues generated in other areas, or it can utilize profits from some locations to at least temporarily cover losses suffered at other locations. It also has the option of closing unprofitable locations. In contrast, closing one location for the local Mom and Pop store means going out of business. Read more…

Need Help with Accounting Services in your Business?

We can help you in your business through our list of services.

Accounting
Bookkeeping Services
Tax Consultancy
Business and Financial Management Consultancy
Audit & Assurance?
Company & Secretarial Services
Allied Services
Assurance and Confirmations

If you are interested in any of our services click here

What do you think?

Did you like this issue? Love it? Hate it?

Go ahead and click “reply” if you have any questions or comments.

Or, click here to post a comment online.

Need one on One Consultation?

you can have a free consultation up to 60 minutes with me about financial, accounting etc. issues you are having with your business or even with anything you did not understand about the article. 0802 318 3590 or 0809 318 3590 J.T Popoola (FCA)

About Taisha Associates

Since its inception, TAISHA ASSOCIATES core services have been built around providing small and medium-sized companies with the timely financial information needed to make informed operational decisions on a daily basis. When you are looking for accounting outsourcing, we can provide you with the solution you need to succeed in today’s competitive environment.

Our team of professionals has about two decades of operational accounting experience and understands the challenges you face on a daily basis. We have used our experience to develop systems designed to streamline accounting processes. From beginning to the end, we will help you process, record, and analyze your data.

Our goal is to offer qualitative, accurate and affordable accounting and bookkeeping , taxation, secretarial and consultancy services that provide good financial analysis/information and guidance for making sound and informed decisions that lead to growth and profitability.

Need Help with any of our Services?