Business in General

No one person or company can pretend to be totally expert on every area of business, but countless numbers have experienced most of the problems, frustrations and worries that go with setting up, owning and operating a number of businesses.

This section was written with the express purpose of offering a few pointers, as so many people go into business without any planning or serious thought. The view of the IRD should also be clearly understood.

So You Are Thinking of Going Into Business

To run your own business and “do your own thing” will bring you may advantages:

  • you are your own person
  • you have the opportunity to benefit from your ability and creative ideas
  • you will possibly earn more
  • you will build a future investment with the increase in capital value of your business
  • you have flexibility and able to work the hours you desire … and no one can fire you, except yourself.

But the disadvantages are also there:

  • you are on our own
  • you need capital to set up and meet all running costs
  • you have no wages if you don’t make money
  • you will probably work harder and longer
  • you are subject to the many risks involved in “running your own show” … and
  • you can lose everything if it doesn’t work out.

So before taking your first steps in setting up a business, make sure you have given the project a lot of consideration. Many people rush in with little thought. The prospect of being your own “boss” and making a “fortune” can cloud some basic but vital issues.

Lack of planning and proper assessment is the reason for the high failure rate of so many new businesses today. Keep your feet firmly planted on the ground when researching a business opportunity.

Your accountant may be of assistance in the early discussion stage. But don’t, repeat don’t take your accountant’s word as “gospel”.

Accountants sometimes have a tendency to be inflexible. Many are good –especially those who have had first-hand experience setting up their own practice. Many more “haven’t got a clue” as to what they’re talking about.

The reason? All theory – little practice. Talk to someone who’s been through the “school of hard knocks”.