Starting a Business
Services for Starting a Business
According to Industry Canada, the survival rate of start-up businesses will decline over time. In the first year of a business approximately 85% of the start-ups survive, but by year five there are only 51% that are still around. There are a handful 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.
Rudy Fischer, CPA, CMA will work with a start-up business to help them understand and financially plan and track their operations from sales through to customer support. Through RK Fischer & Associates, we are able to offer additional business consulting and business coaching to help start-ups who are looking to invest in their business to help make it successful. The reasons that most start-ups fail:
- 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.
Strategy & Planning Services
We provide the following services under strategy and planning for start-up businesses. Our goal is to help you get your business off the ground, gain the proper financing, and help you ensure your business achieves the financial goals that you have set.
- Business Strategy: Strategy is about defining where you want your company to go not necessarily how you are going to get there. If you are a start-up business it is important that you define your strategy before you move forward and look for investment in 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 Plan: A plan which creates and validates your business strategy for all areas of the business for investment or financing and is the blueprint that helps direct you 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. A financial model is developed for both a feasibility study or business plan, but can be used on its own if the premise is determining only the financial feasibility of your business. A financial model will help test your assumptions about your business and facilitates "what if" analysis. Five years of proforma statements are developed.
Setting Up Your Business
It is important when you are starting a business to set up the business properly from the very beginning. We provide the following financial business consulting and business 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 within your accounting system. If you do not set up the chart of accounts to reflect your business, it will be difficult to determine how your business is performing.
- Budgeting and Forecasting: The development of forward looking plans based on realistic goals and objectives. Your budget needs to be created at the beginning of each year and sets the expectations for the year which is based on your goals and objectives. Your forecast is performed throughout the year to track how you are performing against the budget. This can be done within most accounting systems, so you are able to track and report. Forecasting can also be done within a CRM (customer relationship management) system.
- Cash Flow Management: Starting a business consumes a lot of cash and it is key that you have sufficient cash to fund your growth. The planning of your cash flow requirements is based on your sales, collection cycle, purchases, payment cycle, and capital needs which are levers that facilitate cash flow management.
- 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 allocation of appropriate indirect costs for pricing purposes. Product & service costing helps you determine your breakeven point which helps you better manage your business.
- Pricing and Packaging: The development of pricing and packaging for your products and services is based on the market, costs of goods sold, competition, value-add, as well as sales channels involved. The value your products and services offer will help dictate your pricing. Pricing directly supports your cash inflows.
Measurement and Performance
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.
You want early measurements so that you don't find out until the end of your fiscal year that your business did not perform as expected.
- Management Reporting: Set-up and development of reporting that is tailored for management in order to run the business more efficiently and effectively. This is a mix of financial and operational metrics that are key to your specific business.
- Business Performance: When setting up a business it is important to set it up based on best practices. We offer a free business performance assessment to help you determine where you are today in relationship to industry best practices. Increasing performance can then be worked on through business coaching.
Business Coaching and Advisory Services
As you start your business, you will want 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 and your business.
- Business Coaching: Teaches and guides the business owner on the skills and knowledge they need to run their business. No two businesses are the same, so business coaching is specifically tailored to you and your business needs.
Our offices are located in Southwestern Ontario, but we are able to provide services remotely across Canada. We do not provide business coaching onsite except within our local area, but provide other consulting services onsite that are a minimum of a day if you are located in Peterborough, Orillia, Clarington, Bowmanville, Oshawa, Whitby, Ajax, Pickering, Scarborough, Toronto, Markham, Aurora, Newmarket, Richmond Hill, Vaughan, King City, Brampton, Caledon, Bolton, Mississauga, Etobicoke, Oakville, Burlington, Milton, Hamilton, Guelph, Kitchener, Cambridge, Waterloo, and Windsor. Our local service area for onsite services under one day is Sarnia, Chatham, and London.
For services outside our service area within Canada who require onsite services, please contact me to determine how we may best service your requirements.
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Rudy Fischer, CPA, CMA |(877)504-2049 ext 102 | firstname.lastname@example.org