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It’s quite unlikely that any small business owner will be lucky enough to succeed in business if they don’t have a plan, says CFO services. In fact, the statistics are grim in that 15% of small businesses will fail in the first year, 30% in the third year, and 50% of all small businesses will dissolve within the fifth year of inception.
This likely is because, according to CFO services, that the business owner thinks that they have a plan a can do it all themselves. They have not yet retained the professional services of people who specialize in working with small businesses in order to survive, and thrive.
What the small business owner should do immediately upon planting the seed they want to own a small business is to retain the services of a charter professional accountant. Bear in mind that this needs to be a experienced charter professional accountant, and not just one that is still in school, or just out of school. Make sure that your charter professional accountant has experience with all different types of businesses of all different levels, all different sizes, all different industries, and all different occupations.
This is so important in that they will be able to have seen what works for small businesses and what hasn’t. They will be able to counsel you in decisions such as buying no quit for your business for efficiency purposes, or hiring new people in order to give you a little bit of a break to enjoy with your family, or to focus on different parts of your business.
Oftentimes what will happen is your charter professional accountant will discuss putting into play a template for you. That template is designed to make the business plan and easy exercise to follow throughout the fiscal year. As a charter professional accountant and a firm, they cannot be charging the average small business owner, who has potentially sunk all of their life savings into owning a small business, thousands of dollars to do a business plan. It potentially has to be a financial number that they will be able to afford. Having a template will help everybody to be on the same page and work in an efficient manner.
These clients who come into see charter professional accountants and they look exasperated because they have come in and the 11th hour when their businesses failing. However the question is is they don’t often know why their businesses failing. Oftentimes what has happened is the business owner has taken it upon themselves to do everything. What this means, says CFO services, is they have taken all of the financials and done it themselves. They have been the go to a between themselves and the Canada revenue agency, they have dealt with tax, they have dealt with financials, etc. However, often times what happens is the business owner is not a charter professional accountant and does not have expanse with this. This could be financially detrimental.
Benjamin Franklin is attributed with the quote “if you fail to plan, you are planning to fail.” This is very true, and you can take this wholeheartedly into the idea of owning a small business. Success stems from and fosters planning. It can make or break your business quite frankly, and the latter is obviously failure and potentially the loss of your life savings.
What often happens with charter professional accountants when a client come in is that they have a great idea for marketing, but they don’t often quantify that idea. They don’t know how may flyers they’re going to put out, they don’t having networking events that they are going to go to, and they don’t know how much they’re going to spend on their ad spend budget, etc. In order to get an accurate forecast, you have to start quantifying everything within your business. Make sure that all of the initiatives with which is associated with your business and your marketing strategy is a good in fact quantified, and then you’ll be able to properly quantify a forecast as well.
Do not allow yourself to believe that retaining a charter professional accountant is as easy as walking into the first door and hiring them. You need to do your due diligence as there are different kinds of chartered professional accountants with different experience levels etc.
First of all, do not allow yourself to fall into the idea of getting and retaining a chartered accountant. Yes, chartered accountants do in fact have a four-year degree in accounting and or business. However they do not have the charter professional accountant designation. That is a three or designation that allows the student to work for three years in a working accounting firm alongside successful CPAs.
As well be aware, says CFO services that there are chartered accountants out there who continue to masquerade as charter professional accountants. This is because they have started the CPA designation course, however they have either failed out of it or they have dropped out of it. Consider your small business, particularly if you are a new small business, says CFO services. Do you want to retain and have somebody responsible for all of your finances the one that has failed?
What you need to do is make sure that you when walking into an office ask to see both of the charter professional accountant designation. What that is is that is a four-year degree. As well as a three year charter professional accountant designation course, says CFO services.
What can happen is as well there are proper charter professional accountants that will stick with just one firm right of the school and only does one or two business plans a year.
What you do need is your charter professional accountant with lots of experience in writing hundreds of business plans for all different types of businesses throughout the year.
