start your business
According to Industry Canada, the survival rate of a start-up business will decline over time. In the first year of a business there are approximately 85% of the start-ups that survive, but by year five there are only 51 percent that are still around. There are a hand full of reasons why most will not succeed, so it is important when you are starting your business that you increase your chances of success by having a handle on your business from the start. As an entrepreneur you have the technical know how and expertise on your product or service. Sometimes where we find start-ups need help is in finding expertise in the business areas where they they are not experts. Not doing so could lead to failure.
The main reasons that start-up businesses do not succeed are:
- Inexperience of the business owner: The inexperience can either be in the industry that you plan to start your business in, or the inexperience in starting or running of a business.
- Lack of understanding of the market or size: You can have the best idea, but if there is not a market / requirement for your product or service, or the market is not large enough to support or sustain your business, this is important to know before you begin.
- Lack of a value proposition or too much competition: If you are starting a business in a competitive market, it is important that you understand if the market is large enough to support and that you are adding value to the market and are not a "me too" business.
- Starting too big: It is important not to take on more than you can handle when you start a business as growth too early is a great predictor of business failure.
- Lack of financing whether lending or investment: Even if you plan to boot strap your start-up business, you must have enough available money to get your business off the ground. It takes money to make money.
- Costs are too high to support revenue: It is important that you can sell enough and have enough margin to more than cover the costs associated with not only cost of goods but your overall expenses.
- Bad partnerships and lack of the right team: It is important to go into business with individuals you trust whether investors or other shareholders or even employees in your business.
At Rudy Fischer, CPA, CMA, I work with start-up businesses to help them understand and financially plan and track their operations from sales to customer support. Working as part of RK Fischer & Associates, we offer additional business consulting and business coaching to help start-ups who are looking to invest in other services to make their business successful.
Strategy and Planning
We provide the following services under strategy and planning for start-up businesses.. These are full consulting engagements and are not a writing engagement. Our goal is to help you get your business off the ground and gain the proper financing for your business.
- Feasibility Study: A study which will help determine whether your business idea has the potential for profitability before you invest both your time and your money.
- Business / Strategic Plan: A plan which creates and validates your business strategy for all areas of the business for investment or financing and helps directs you as well in your business.
- Financial Model Development: The development of a mathematics based financial model of your business that allows the owner/operator determine possible outcomes.
Setting Up and Running Your Business
It is important when you are starting a business to get it set up the business properly from the very beginning. We provide the following financial business consulting and coaching engagements to help you getting started.
- Chart of Accounts Set-up: Based on your industry and what you are doing within your business, you will need to have your chart of accounts set-up properly for your business within your accounting system.
- Budgeting and Forecasting: The development of forward looking plans based on realistic goals and objectives.
- Cash Flow Management: The planning of your cash flow requirements based on your sales, collection cycle, purchases, payment cycle, and capital needs.
- Product and Service Costing: The determination of your short and long term fixed, step, and variable costs for any of your products and services. This includes identifying direct costs and allocate appropriate indirect costs for pricing purposes.
- Pricing and Packaging: The development of pricing and packaging for your products and services based on the market, costs of goods sold, competition, value-add, as well as sales channels involved.
Measurement and Performance of your business
When you start a business, you want to make sure that you are able to measure and monitor the performance of your business as you move forward so you are able to react and make changes as soon as possible.
- Management Reporting: Set-up and development of reporting that is tailored for management in order to run the business more efficiently and effectively.
executive management and coaching for your business
As you start your business, you might need to have business and financial guidance to help you get on track from the start. We are able to provide you with the level of help that suits you.
- Business Coaching: Acts as an advisor, counselor, and guide to the business owner to bounce ideas or gain advice for financial matters and if needed can act as a member of there team if needed.
- Executive Management: Acts as a senior member of the management team (CFO) on a part-time basis.
We are located in Durham Region, but are able to provide business coaching and business consulting services across Ontario. Our local service area includes Oshawa, Whitby, Ajax, Pickering, Clarington, Bowmanville,Peterborough, Lindsay, Port Perry, Uxbridge, Toronto, Markham,Richmond Hill, Newmarket, Vaughn, Aurora, Mississauga and Brampton. Outside our local area, travel and living expenses will be applied as required
Rudy Fischer, CPA, CMA |(289)279-1970 ext 102