Business by Design: Beating the Odds!

Clear Vision • August 31, 2016

Key elements of successful businesses – why building a business by design is the key to your success

I’m personally a strong believer in the principle of business by design.  That’s because I’ve seen examples time and time again of successful businesses that are created by careful design of each element of the business.  And in the opposite case, I’ve seen many otherwise viable businesses fail simply because they left large parts of their business to chance, rather than creating a business by design.

This series of articles will be addressing the key reasons why most businesses, primarily small to medium enterprises go out of business.  And help you to understand how to design your business to avoid these problems and succeed!

Part 1 – Beating the odds!

An article I read recently cited ASIC data which indicated that more than 60 percent of small businesses cease operating within the first three years of starting.  That’s a pretty daunting figure if you are thinking about starting a business.

Let that sink in for a minute – LESS THAN HALF SURVIVE BEYOND THREE YEARS!

Of course, not all of those that cease trading are financial failures or disasters for their owners.  Many businesses transition into other businesses, owners find that working for themselves is not what they’d hoped and some get acquired by other businesses.

But what about those that do fail?  What is it that pushes them under?  What leads to the demise of what may have been a long held dream of the business owner?

And most importantly, how can we learn from these failures and design a business that will succeed?

That same article provided some further data from ASIC around corporate insolvencies and the recorded reasons for the business going under.  These included:

  • 44 percent had inadequate cash flow or high cash use
  • 42 per cent suffered poor strategic management
  • 34 per cent suffered from trading losses

Already there is a pattern emerging here.  Sometimes a business is simply just a bad idea or there isn’t a genuine market for the product or service – but quite often the issue isn’t with the business idea – it’s with how the business is managed and designed.

Being the world’s greatest carpenter, dentist, builder or chef doesn’t guarantee you a successful business if you get the management and finances wrong.

Another issue identified was simply a lack of capital.  Many businesses need a significant investment to reach critical mass.  Without that, they may never thrive.

Other issues include:

  • Lack of management experience
  • Lack of a business plan or realistic business model
  • Insufficient marketing
  • Poor financial management

We have a variety of articles on this website to help you address each of these common causes of failure so that your business thrives and doesn’t become part of ASIC’s insolvency statistics!

Capital Gains Tax Implications of Subdividing Land in Australia

By Caroline Gillies • June 1, 2025
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Autumn Tax Tips: Make the Most of the Final Weeks Before Year-End

By Caroline Gillies • May 25, 2025
As we step into the final week of autumn and feel winter’s chill approaching, it’s a natural time for reflection—and that includes taking stock of your financial and tax situation. The end of the year is closer than it seems, and a bit of preparation now can make a significant difference come tax season. Here are a few things to consider as the leaves fall: 1. Review Your Income and Deductions This is a good moment to check your income year-to-date and consider whether there are any deductions you can still take advantage of. Charitable donations or investment losses might help reduce your taxable income before year-end. 2. Maximise Super Concessional Contributions If you haven’t yet maxed out your superannuation concessional contributions, there’s still time. Remember unused cap amounts carry forward for 5 years and the 2019-20 unused cap amount will expire 30 June 2025. These contributions not only help secure your future but can also offer tax benefits now. 3. Organise Your Records Autumn’s slower pace is perfect for pulling together receipts, invoices, and financial documents. Getting organised now means less stress later when tax season begins in earnest. 4. Consider Tax-Loss Harvesting If you’ve had investments that underperformed, selling them before the end of the year to offset gains can be a strategic move. Consult with us today to see if this makes sense for you. 5. Plan Ahead Winter may bring holidays and downtime, but it's also a good window to consult with a tax professional. A quick meeting before year-end can reveal savings opportunities or help avoid surprises when you file. So, as the days grow shorter and frost begins to settle in, use this time to bring clarity and warmth to your finances.

Have you Thought About Where Your Business Will Be in 5 Years?

By Caroline Gillies • May 11, 2025
At Clear Vision Accountancy Group, we offer tailored services to support your long-term success—from strategic business planning to high-end tax administration. Whether you're aiming for growth, improved profitability, or a clearer direction, we're here to help you build a plan that gets results. If you're ready to map out the next five years with clarity and confidence, contact us today on (07) 4688 2500. Our 1-Page Business Plan will help you with: 1. Vision & Purpose Where are you headed, and why does it matter? What is the core purpose of your business? In five years, what positive impact will you have made on your customers, team, or community? What do you want your business to be recognised for within your industry? 2. Growth & Scale What does success look like, and how will you achieve it? What revenue, profit, or market position are you targeting? How many clients or customers do you want to serve—and in which markets? Are you planning to expand your offerings or enter new territories? 3. Team & Culture Who is helping you build it—and how? What does your ideal team look like in terms of structure, culture, and capabilities? How will you attract, retain, and develop top talent? What kind of leadership values and workplace environment will you foster? 4. Operations & Systems How will you deliver at scale—efficiently and reliably? What systems and workflows need to be in place to support sustainable growth? Which technologies or platforms will you implement to improve efficiency? How automated or streamlined do you want your business operations to become? 5. Brand & Customer Experience What do customers say about you—and why do they keep coming back? How will clients describe their experience with your business? What kind of reputation or brand presence will you be known for? What sets your business apart from the competition ?  Our Dream it. Plan it. Get it! will help you with: 1. Lifestyle & Personal Goals How does your business support the life you want to live? What level of involvement do you want in the day-to-day operations? What does ideal work-life balance look like for you? What personal or financial goals will your business help you achieve?