By Andrew Griffiths
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Extra resources for 101 Ways to Boost Your Business
In many ways the business never really recovered, because I was always seriously short of money. If I could turn back the clock and use the experience I now have, how would I have approached this same situation? First, I would have negotiated much harder on the sale price. The previous owner wasn’t making any money and, in hindsight, I probably could have bought the business for next to nothing. Second, I would have paid a mechanic or an engineer to check all of the equipment to determine whether it was in good condition and what would need to be replaced.
Most importantly, you have to be completely honest with them. If your accountant submits your tax return based on the information that you have given them and it’s not true, you get into trouble, not them. So be open and tell it the way it is. If there are problems in the way you do things, your accountant should be working with you to help eliminate those problems. It may take a while, but as long as you are working together, virtually any problem can be overcome. A good accountant is a powerful weapon in the arsenal required to survive in business.
At the end of the week there is a lot of money left in the account and you can now start to reward yourself. Perhaps you buy yourself a new car, maybe even a new house, maybe a good holiday. While you are busy spending this money, phone calls aren’t being returned, customers are starting to leave, bills aren’t getting paid and you don’t notice. As you start the fourth year, your attention is shockingly brought back to the business when the tow truck pulls away with your shiny new sports car. At about the same time, the bank rings to say that your cheques are bouncing and finally you are forced to close the doors.
101 Ways to Boost Your Business by Andrew Griffiths