Have you wondered why more than 90 percent of new San Diego businesses fail in the first 3 years? After decades of experience as a business owner, and as an experienced business and tax attorney I can share that the primary reason for the failure of new businesses is decision making based upon emotional factors, often fear, instead of relying upon genuine numbers and the nature of the business environment and transactions at hand. The first goal of anyone who is serious about running a company should be to ensure that they have systems in place to capture and measure critical business metrics and financial data associated with every facet of the business.
Many decisions are based upon fear. Fear cannot be a primary factor in any sound business decision. You may “fear” a business audit by the IRS, for example, but you do not make decisions based upon these fears. You take action based upon the facts at hand and the steps required to reduce costs, or to increase revenues and associated profitability. Your valid concern about reducing the likelihood of an IRS audit informs your decision to document all relevant details and to have substantial accounting systems in place to back up information that will be provided to the IRS.
One of the reasons more than 90 percent of new San Diego businesses fail in the first 3 years is the owners don’t really understand the difference between “risk” and “fear.” Business decisions based upon “fear” or “security” are not usually sound business decisions. However, “risk” and “fear” are two completely different things. It is prudent to take all available actions to reduce risk whenever possible. The presence of risk will have an impact on the range of associated reward. Successful business people take calculated risks every day, but they are informed decisions based upon substantial information, business knowledge, market factors, and internal systems.
The integration of legal, tax, accounting and business advisory services at Allen Barron helps our clients to navigate through challenges and leverage opportunity. We help to ensure that our clients have the tools, counsel and availability of experience and expertise to guide their business decisions. We help them to capture and measure critical internal business metrics. We advise them as they approach important business decisions and help them to understand the decision from every possible perspective and to avoid unnecessary risk. Our counsel is based on actual business experience across decades. It isn’t theoretical, it’s practical, informed, and earned from the same challenges you face – meeting payroll, growing your business, understanding the genuine nature of all transactions, personnel decisions and changing market factors.
Now you know a few of the reasons more than 90 percent of new San Diego businesses fail in the first 3 years. Why do the 10% succeed? If you seek sound business counsel, we invite you to contact Allen Barron or call today to schedule a confidential, complimentary and substantive consultation at 866-631-3470. Business is about decisions, and we help our clients to develop the sound business systems and insight to inform their decisions so that they may continue to grow and ultimately accomplish their primary objectives.