Login
iscover
Individuals looking to establish a business must understand the sacrifices and challenges that can accompany it, according to the co-founder of Four Pillars Gin.
Profitability and sustainability goals crucial for long term SME success
13 March 2025
•
8 minute read
Establishing a small business can come with multiple hurdles and considerations that often go ignored by new owners, eventually leading the business to failure.
You’re out of free articles for this month
To continue reading the rest of this article, please log in.
Create free account to get unlimited news articles and more!
At the Accounting and Business Expo yesterday, Stuart Gregor, co-founder of Four Pillars Gin and director of Liquid Ideas, said he was often irritated by new business owners who built a business with an exit plan already in mind.
“One thing that slightly frustrates me about a lot of young start-up businesses today is that they're going into the business looking for an exit,” he said.
“When we started our business, we never went into the business looking for an exit. We went into the business to create a great business.”
“Never go into a business thinking about how you are going to manufacture an exit. Go into business thinking about how you can build the best customer base, the best business, the best practice, and the best advisory service.”
Gregor said the outcome of building a great business with all factors accounted for and thoughtfully planned out would hopefully land business owners with a successful exit later on in life.
Despite succession planning being a popular piece of advice from multiple sources, he attributed a successful business and a successful exit to the creation of a business, its profitability and its sustainability.
“No one wants to buy a business that isn't profitable or sustainable, right? So, make a profitable and sustainable business, and you will suddenly get a much better chance of finding someone who wants to succeed you,” Gregor said.
“People buy businesses because they want to take on something that they can see. They want something that is already sustainable and profitable and has a good reputation so that they can grow it, enhance it, or build it in a different direction. That’s what business owners need to focus on.”
Challenges often faced by the small business community would need to be considered by aspiring business owners as they often acted as a significant hindrance.
The lack of attention, focus and legislation from the government towards the small business community often made the operation of a small business unenjoyable and unsuccessful, Gregor said.
“The small business community doesn't get a fair cut from the government. We don't get enough attention, especially when we employ a lot of people.”
“It seems to me that as a small business community, either we need to be better at lobbying and better in effective communication, or we just need to crack a few more heads at a government level to see what can be done. I think that we don't get the attention we deserve.”
This lack of support was linked to the increase in insolvency rates, as the government and some business owners sometimes failed to understand the importance of fostering successful and sustainable small businesses in the broader community.
Gregor recommended that aspiring business owners understand the integral impact or detriment their business could have on Australia and its SME community.
“The continual insolvency rates that are going on in the small business space, it doesn't just affect the economy or employment. It affects communities, and it affects families, and that's what the difference is between, you know, being mindful in what it takes to start a small business,” Gregor said.
He also advised that individuals looking to start a successful business should never go into it without the essential basics: “An accountant, a lawyer and a bookkeeper.”
You need to be a member to post comments. Become a member for free today!
