Tough love needed on road to success
problems,” he said. “I’m in love with the business, the product is ancillary. Businesses are about making money, not what you love doing. There has to be a return.”
It is this tough love approach Mr Maguire will bring as a mentor with the State Government’s Mentoring for Growth program, travelling the state and dispensing advice to a wide range of small to medium size enterprises.
Next week he will take part in digital forums on Facebook and Twitter to promote Queensland Small Business Week, which runs from May 15 to 20. The business troubleshooter who has been in business for more than 40 years said he had “made all the mistakes you can think of. Now as a mentor, I ensure small business operators don’t make the same mistakes I did”.
In 1997, at 48, he was dumped from apparel firm Driza-Bone by the UK owners. Two years later, he bought the company with a consortium of investors and returned as managing director until 2005.
Driza-Bone is famous for its oilskin raincoats, synonymous with films such as Man from Snowy River.
Mr Maguire said small business owners needed to understand their weaknesses in order to overcome problems.
He said common mistakes included failing to adequately manage cash flow, taking wages out of profit to maintain a lifestyle, and doing inadequate market research.
“People do market research that suits them and reinforces their approach. There is a saying that niche businesses are only niche because the big boys don’t want The them,” he said. “If you have a niche then you have to work out if you can expand it.”
Mr Maguire said people also tended not to ask for help, or to seek out the wrong professionals for advice. And business owners also need to be able to read accounts.
“Every successful managing director understands accounting principles,” he said.
He says the primary ingredient for business success is a solid work ethic.
“Running a business is not easy. It is not a cheque for a better lifestyle, unless you put in the hard yards,” he said.