WORLD ACADEMY OF INFORMATICS AND MANAGEMENT SCIENCES
ISSN : 2278-1315
Except it doesn’t, they see almost no results. Add this to
problem, a well develop financial plan is needed to make
perhaps the most fatal small business mistake or startup
provision for the future. Without good financial planning,
mistake, being underfunded, and you have got a recipe for
cash withdrawal will be a great mistake by business owners.
failure.
Lack of Product or Service Differentiation
LACK OF MAINTAINING BALANCE BETWEEN
It’s rare that a business creates its own category or a product
EQUITY AND BORROWED FUNDS
or service that’s never been seen before. In most markets,
A balance between equity and borrowed fund is relevant to
small businesses face competition, which is why they need
protect the business especially from bankruptcy proceedings
to communicate their unique value proposition why they are
by debts owners. The best balance can be between 60-40%
different. Owners need a solid reason that’s easy to explain
equity/debts ratios. Business owners should make sure this is
and gives people an obvious reason to do business with
maintained to protect the business in the future.
them instead of their competitors.
We all make mistakes. The key is being aware of them and
Use your marketing to educate potential customers, not just
consistently working to make smart, well-informed decisions
sell to them. Educating consumers in a way that defines
in your business. Above all, we, startup owners, small
what differentiates you from your competition makes it
business owners, companies, and organizations need to
easier for them to make a buying decision. If you can’t
develop SMART Goals, the only lead way and direction to
define why your product or service is unique, you can’t
potential success. If business owners can do that, and remain
expect a potential customer will be able to deal with you.
resilient when mistakes are notice and properly address,
success will be within every business reach.
Wrong Selection Methods for Key or Management Staff
Prepared by:
Selections of management staff or key staff most come from
Orshi Terhemba Ephraim AAT, ACILRM, ACA
a credible selection method. Selection process must be
inclusive of technical and otherwise exposing all relevant
ENDEAVOR NEWS
skills needed for the job role to get a credible candidate.
Each news start on a new page and the news headlines or title
There is no alternative to this as this will be a great mistake
full capitalized and bolded
of time for any business organization to make.
Treating Marketing as an Expense vs. an Investment
ACCOUNTANTS AND ARTIFICIAL INTELLIGENCE
An expense is something you buy and depreciate. An
(AI): ADAPTING TO THE DIGITAL FUTURE
investment is something you purchase that will deliver value
By LACHLAN COLQUHOUN
in the future. The sole purpose of marketing is to drive more
(Accountants should remember that they will remain the
leads into customers and keep them as raving fans. So if you
“anxiety transfer experts” for clients, allaying fears and
run your small business looking at marketing as an expense-
concerns and delivering insights into their business. Digital
ready to cut marketing campaigns and programs when
technologies such as artificial intelligence (AI) and blockchain
things get tight, you may want to reshape your perspective
would “cut out the middleman” in financial services, leaving
on small business marketing.. Often when turbulent times
the accountants of the future to focus less on compliance and
hit and sales fall in the tank the first inclination is to reduce
more on strengthening relationships and delivering insights to
your marketing spend. This is the absolute wrong decision.
clients, the World Congress of Accountants (WCOA) heard
Marketing is the very catalyst you need to spur growth and
on 05 November, 2018).
drive new opportunities.
Failing to recognize the value of your existing customers
What will accountants do when compliance work is taken
While attracting new visitors and buyers is key for your
away?
small business, don’t forget about your existing customers.
CPA Australia policy adviser, reporting, Ram Subramanian
asked a WCOA 2018 panel discussion
Studies show that acquiring a new customer can be nearly 6
times more costly than cross-selling or upselling an existing
“How is the changing digital landscape impacting your
one.
business?”
If owners only focus their marketing efforts on acquiring
Subramanian asked the panel speakers how the future would
new customers, you are also likely to neglect your existing
look for accountants in a world where much of their
customers and provide them with less than stellar customer
compliance work would be performed through AI, robotic
service. According to Forrester Research nearly 70% of
process automation (RPA), blockchain and other technologies.
consumers check out customer reviews prior to purchasing a
“As accountants we have a challenge to enhance our
product or service. That means that if you make a mistake
profession”, he says.
and forget about your current customer base your sales
“So much of what we do is compliance work, so what will
growth is in jeopardy. So allocate a portion of your
we do when that is taken away?”
marketing budget to customer advocacy and retention, you
Blockchain Cuts Compliance Work
will find it will propel your brand and deliver more referrals
Panel speaker James Evangelidis, author of the “What do
in the long run.
Clients Really Want” series of books and podcasts, agreed
that while blockchain technology would eliminate a
CASH WITHDRAWALS WITHOUT FINANCIAL
significant amount of compliance work, it would help
PLANNING
accountants but not replace them.
Withdrawal of cash in a business by the owners results to
“I imagine that accountants want to do less compliance, not
cash depletion. This create short and long term financial
more”, he said. “All blockchain will do, will be to eliminate
deficit. When a business is facing cash flow
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