CHARTERED Accountants, PS Alexander and Associate's Pita Alexander said that any successful business venture was only successful if the entrepreneur was fully aware of all aspects of their business' structure.
"You don't drown by falling into water, you drown by staying there. Everyone makes mistakes but the secret is to only make the same mistake once and learn from it the first time," he said.
Mr Alexander was addressing a group of dairy farmers at the Dairy Information by Demonstration (DID) Day at Boyanup last week and said that there was no better way to fail in business than ignorance of the market and economics.
"You must be an obstacle remover, it's no good to throw your hands in the air and give up, keep your options open and you can't go wrong, keeping options open is a form of investment and development," he said.
Mr Alexander described how the average farming enterprise often came unstuck due to insufficient planning and care.
"Remember, if something won't work on paper, it almost invariably won't work in practice and remember also that you almost always have to spend money to make money," he said.
Mr Alexander stressed that minimising losses was every bit as important as maximising profits and that it was very important for the entire household to be involved in farm management decisions.
"Listen to your spouse and children, they may know less about some issues but they will know you better than anyone else," he said.
"Invest in top advice, keep your bank manager in the loop right from the outset and prioritise your capital spending ruthlessly."