Propelling away from the limitations of micro business mentality.

We frequently meet new clients who are on the verge of burnout, working 80 hour weeks and with no way out of their predicament.. Many times this stems from their lack of technical ability to make the leap between making just enough money to growing a sustainable business. The path to growth requires a forum of experience – it is not something one can do in isolation. Entrepreneurs obsess with expenses and tend to ignore the bigger picture, taking on more and more responsibilities. In local terms I have seen it all: startups trying to do all on their own: forming a company, bookkeeping, VAT returns, tax returns. It often gets messy when startups fail to consider important key factors:

• Has the company been setup correctly?
• Is it ready for external investment?
• What is the tax implication of the business model?
• What is the 12-month cashflow cycle looking like?

Things get worse when startups take on professional solutions – accounting packages, ERP implementations and industry specific solutions that require a deep understanding of the data model to get it right. And while all this is happening, who is managing the product and service? Who is driving sales?

Local businesses also tend to resist partnerships or associations. On the other hand, on the other side of the continent, US companies tend to think big, and the local expression is ‘Go big or go home.’ This leads to us investing our money happily in US corporations. We are happy to trust others on the other side of the globe to manage our investments but not confident enough to trust growth in our own Maltese companies. This is a reductive mentality that leads entrepreneurs to stay small, with no one to share their worries. Sometimes not even family members have faith in a clear path to succession.

Employees follow suit. In the absence of a clear growth and career path, the small enterprise suffers to stimulate employees to go beyond their salary. Organising social events can only do so much to motivate people to stay on.

A modern, future-proof enterprise needs to think big, and big inevitably brings in more people. Adding partners to a business is not a problem if:

Bringing in new partners and sharing the growth path of an enterprise is rewarding in the same way that any positive relationship is. Good partnerships enjoy the peace of mind of trusting each other and the ability to distribute the load of an operation. Just as importantly, new partners bring in fresh ideas, new ways of working and investment in kind or in cash. It is also one of the fastest methods of accelerating business from Micro Size to Small and then onwards. Having the final word and being ‘boss’ of your own little company is nothing more than being as successful in business as being a homeowner.

True success comes with growth and innovation, reaching out to new customers and markets, and launching new products and services that disrupt market expectations. It also brings the often-missed job fulfilment: walking away from the office thinking of what a good day it has been and how interesting the journey is. It also takes experience to manage a growth path and the various elements that come into play ensuring a balance amongst investors. This is where independent professionals come in. Professional external advisors can give premium quality advice, impartially and rapidly. Highly qualified and warranted experience matters in the field of advisory.

At Credence we often live with business owners and company directors from inception to an exit plan. We pride ourselves on walking the path together with business leaders, understanding their journey, and giving a helping hand in areas we specialise in.

Our service offers a forum for discussion, a place where owners can open up about concerns and discuss their future and its risks privately. Working with us also means you have what it takes to drive change and believe that micro enterprise is limited, growth is the only way forward, and nothing lasts forever.