Smith's Accounting and Tax Service Performance Remediation Advise Essay

1357 Words6 Pages
Dear Ms. Smith, according to According to Dun & Bradstreet and INC. magazine, 33% of all new businesses fail within the first six months. Fifty percent of new businesses fail within their first two years of operation and 75% fail within the first three years. (Pendrith, 2010). The author Mike Pendrith goes on to provide his assessment of why new businesses fail. I will use the reason highlighted by him as the framework to my remediation advice. All these are consolidated in the four functions of management that are planning, organizing, leading, and controlling (POLC). 12 REASONS WHY NEW BUSINESSES FAIL 1. No Business Plan 2. Under Funded 3. Lack of Operating Goals and Objectives 4. Failure to Measure Goals and Objectives 5. Failure to Pay Attention to Cash Flow 6. Failure to Understand the Industry and the Target Customer 7. No Means of Differentiation – Just Another “Me Too” Business 8. Poor or No Marketing Programs in Which to Attract New Customers 9. Underestimating the Competition 10. Not Cost Competitive 11. Lack of Attention to Accounts Receivables and Inventory 12. Poor People Management Skills Dear Ms. Smith, as the owner-manager of Smith Accounting and Tax Service firm, you are well aware that you have the appropriate technical skills, and you had a good start as shown when you identified and seized the opportunity to grow your business. As a new entrepreneur rolling out a new company you are worthy of praise; with that said, I most point out some P.O.L.C. functions where you could make some improvement. Ms. Smith, planning is very important for any business regardless of size. This is because all the other functions connected to the management fall under the planning and the lack of planning is planning fail (Raje, 2008). Your initial actions upon realizing that opportunity for expansion was available, seizing the opportunity, and

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