Free consult & free copy of book

E-Myth – “Why most small businesses don’t work & what to do about it”

Contact Us


Most 5 star CPA Google reviews in Canada

Read Reviews

Chartered Professional Accountants E Myth

1 Fixed Monthly Fee - Planning | Accounting | Taxes | Consulting

Helping Canadian businesses beat the odds!

Accounting Outsourcing | Increasing Wealth And Business

50% of businesses will fail within the first five years, and 42% of those failed businesses say that the inability to attract enough customers was a reason for their failure says accounting outsourcing. As Peter Drucker, the author of 39 business books says the bank happens until someone sells something. Business owners need to understand that to become successful in business, they need to focus on generating income and attracting customers. However business owners are struggling financially become fixated on minimizing expenses, even though that will not allow them to succeed.

Business owners who believe that minimizing expenses is a way they can help the business succeed are often in the employee mindset says accounting outsourcing. Most employees have a fixed income, and donít have the ability to change their salary, so in order to increase their wealth they must cut their costs. Whoever business owners must change that mind set to an entrepreneur mindset, which is businesses have infinite potential to unlock infinite revenue.

Once business owners can shift that thinking, they will stop spending all of their time and energy on the activities that will not affect their business. Often business owners who are struggling fixated on some of the most simple things that they can save money on such as phone bills, office supplies, bank charges and utilities. It is a very easy concept business owners to grasp, and they are often able to save a few dollars so they feel their being effective. Unfortunately says accounting sourcing even if business owners save a lot of money on these categories, itís not going to help them become more successful because theyíre not generating more income.

The most important activity the business owner can spend their money on that does have the ability to increase their revenue is on sales and marketing strategies and increasing productivity in their business. If business owners can spend the most of their time on these activities, they will be able to help their business attract new customers and generate new revenue. Once they have new revenue being generated, paying those expenses is not a big deal says accounting sourcing.

Once business owner has their revenue generating activities, they can spend time on minimizing costs, as long as theyíre looking above the midline on their income statement says accounting outsourcing. One of the most significant costs to a business is the administrative labour, and business owners can quickly affect this cost by optimizing their administration staff. Through either reducing hours, or having those administrative staff to work on billable tasks, such as Accounts Receivable or on sales and marketing, business owners can offset this cost.

Entrepreneurs need to focus their time and energy on the activities that all help them affect their bottom line greatly such as generating income, increasing productivity and not only sales and marketing, but evaluating their sales and marketing efforts says accounting sourcing. Because cutting expenses alone will not help their business grow.

Business owners who are struggling financially become fixated with minimizing expenses, even though minimizing expenses will not allow them to succeed says accounting outsourcing. And the biggest question many business owners have is why wonít minimizing expenses help them succeed?

The reason why you minimizing expenses will not help business owners succeed, is that no matter how many expenses they can eliminate in their business, without attracting new customers and generating new revenue, they are stuck with only a limited amount of money. By spending their time and money on ways to increase their revenue and attract new customers, business owners can start to make an unlimited amount of money.

A business owners most valuable resource in life is their time. And since time is limited, business owners need to learn how to spend their time effectively says accounting outsourcing. By spending the least amount of time possible on optimizing their expenses, and the most one of time possible on increasing revenue and productivity, business owners can start to make significant amounts of money in their business.

By organizing their income statements in numerically descending order, business owners can easily glance at the list to see quickly where they are spending most of their money. The least important expenses that affect the bottom line the least are at the bottom. By knowing that there spending most one of money on, business owners can make decisions very quickly about how to minimize affect and optimize the spending. Other than Brent the top two categories were business owner will spend most of their time is an administrative labour and on gross margin. The business owner can spend time on these two things optimizing the costs, you have good rate of return. Administrative staff can be optimized by re-tasking them to billable tasks such as sales and marketing or Accounts Receivable, or by reducing hours says accounting outsourcing. And gross margin can be optimized by sitting on the direct cost of labour, supplies and materials.

Once business owner has demised those categories, they can start spending their time on the activities that will help them generate revenue and increase productivity. Sales and marketing is a great way that business owners can start attracting new customers. Itís not just important to spend time doing sales and marketing, but business owners also need to evaluate those efforts, so they can see what is being effective continue working on, and what is not, so what needs to change. By spending the most amount of the time that they have on these activities, business owners can start to unlock the potential in their business to generate more income, rendering the need to minimize expenses on the lower half of their income statement unnecessary. Because saving money on those expenses at the bottom of the income statement, may help a successful business become more successful, however it will not save a failing business. I remembering the simple rules, business owners can start increasing the revenue in their business.