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Business & Economy

Sunday, 24 July 2011 22:25

Its Time to Rethink Entrepreneurial Risk

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Contact Details Name : Chris Preen Company : Find An Accountant Phone :072 2000 830 / 021 - 783 2183 Email : This email address is being protected from spambots. You need JavaScript enabled to view it. URL : With nearly a million jobs lost in the formal South African economy last year, and plenty more predicted this year, the time has come to rethink the risk involved in becoming an entrepreneur. Traditionally the view has been that starting a new business was only for “risk-takers”. However, with the massive retrenchments in the past 12 months, the willingness to become an entrepreneur should you find yourself jobless may actually be the most secure way to ensure an ongoing and uninterrupted income.
One of the reasons starting a business is perceived as high-risk is because of the number of new businesses that fail. But according to Chris Preen, Director of South Africa’s specialist Accountant Directory –, the risk of venturing out on your own can be greatly reduced by finding the right accountant to assist at the very the beginning of the process. The biggest reason for the failure of small businesses in South Africa is undoubtedly a lack of financial planning and financial control.

It is critical that any new Business Plan include some kind of Break-Even Analysis and a good small business accountant is the best person to help with this. Besides number-crunching, accountants have a wealth of small business experience. They usually have clients in a broad range of industries and are privy to the financial failures and successes of these businesses. If the new entrepreneur can, they should try and select an accountant with experience in the same industry as their own. Each accountant's profile on lists the industries in which an accountant has experience, along with average fees and other valuable information.

When an entrepreneur has teamed up with the right accountant, and the financial viability of a new business has been thoroughly assessed, running your own business may be a lot less risky than previously thought, especially when large companies are on major retrenchment drives.

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