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!

What Records to Keep for Your Rental Property

By Caroline Gillies • August 3, 2025
If you own a rental property or holiday home, keeping the right records is key to maximising your tax deductions and staying ATO-compliant. This week, we’re highlighting what the ATO expects you to keep when it comes to residential rental properties. Here’s a quick checklist of the documents you should hold onto: Purchase & Sale Documents – Contracts, settlement statements, and legal documents. Loan & Ownership Records – Loan statements, refinancing documents, land tax assessments. Rental Income – If you don’t have a rental statement you will need to document all rental income received, including bond money retained, insurance payouts, and any other reimbursements. Expenses & Repairs – Keep receipts and invoices for expenses like advertising for tenants, property agent fees, council rates, strata levies, repairs, maintenance, insurance, and interest on loans. Depreciation & Capital Works – Receipts for assets over $300, depreciation reports, and capital improvement records. Before and after photos of any capital works. Holiday Home Use – If your property is rented out part-time, you’ll need evidence of when it was genuinely available for rent (e.g. booking requests, advertising, availability calendars). How long to keep records: You’ll need to keep most records for at least 5 years after lodging your tax return, or longer if claiming capital works or carrying forward losses. Keeping detailed records ensures you claim everything you're entitled to—and makes things much easier in the event of an ATO audit.  Need help getting your documentation in order? Reach out to our team at Clear Vision Accountancy Group—we’re here to help. To read a more detailed list of items you need to keep for your rental property visit: Records for rental properties and holiday homes | Australian Taxation Office

How Much Do You Need to Make? Understanding Business Turnover

By Caroline Gillies • July 13, 2025
Running a business isn’t just about making sales — it’s about making enough sales to cover your costs and pay yourself what you deserve. But how do you figure out how much turnover (aka revenue) you actually need to make each month? Knowing this number helps you: Set realistic sales targets Price your products or services properly Know when to cut costs or increase margins Understand when your business is sustainable This isn’t just about numbers — it’s about clarity and control. Once you know your required turnover, you can stop guessing and start planning. Whether you’re a solopreneur, a growing startup, or a small business owner, this is the foundation of making your business work for you — not the other way around. We love numbers — seriously. And we get that not everyone does. If you need help breaking things down in a way that’s simple, practical, and actually makes sense (even if numbers aren’t your thing), call Clear Vision Accountancy Group today on 4688 2500.

12% Superannuation Guarantee - 1 July 2025

By Caroline Gillies • June 22, 2025
From 1 July 2025, the Superannuation Guarantee (SG) rate in Australia will increase to 12%. This means employers will be legally required to contribute at least 12% of an eligible employee's ordinary time earnings to their superannuation fund. This increase is the final step in a legislated rise from 9.5% in 2021 to 12% by 2025, aimed at boosting retirement savings for Australian workers. If you use Xero for payroll, the SG rate should automatically update in the system. However, we recommend you double-check your payroll settings to ensure everything is correct. If you’re unsure or need assistance, please contact your bookkeeper or get in touch with us at: Clear Vision Accountancy Group (07) 4688 2500 We’re here to help you stay compliant and avoid any costly errors.