15 September 2015

A Business About-face

Sylvia shows up one day and asks if I can do her husband's income taxes. After a bit of conversation, it became obvious why he wanted to give up his business and go back to work at his old job. Sylvia also disclosed that by the time she knew what was happening, she felt it was too late to turn the company around.

I like taking on these cases because on a good day, I not only handle the taxes and get the family on board with CRA, but I can help the client continue their journey as a business owner. I love being in business for myself, but it would be a nightmare with a financial dead weight hanging over me. Bad accounting habits by business owners along the way will get them into hot water. Incorporating a few skills and new processes into your daily practise can make every year an easier one.

I've learned from the school of hard knocks. My own personal bankruptcy gives me the right to claim the status 'Subject Matter Expert' about how not to do it. I feel an affinity for folks who have gone down that road and I love showing them how to get back on track with their finances.

Why did Sylvia’s husband end up in this predicament? There were a number of reasons for why the business fell into decline, including pricing the product too low in the good times, going after the 'fast' cash (such as doing jobs that generated income under the table), not keeping on top of the financial accounting aspect of the business, and not including the family in the business decisions from day one. All of these mistakes can be boiled down into one crucial element: not understanding cash flow within the business.

We have two programs rolling out that will help with this type of situation. The Buck Stops Here is all about taking control of personal finances and Business Boot Camp is filled with nuggets about the habits of successful business owners.

If your story is anything like Sylvia's, call me. It's never too late to put some processes in place that will help your business.

No comments:

Post a Comment