Even when the money's there, if the entrepreneur lacks the confidence in their endeavor, the business will fail.
As a CPA building my own firm, I discovered that the most beneficial clients were those that were starting their own business as well. The lessons I learned from my own experience translated to the advice I began to give, and my relationship with these burgeoning businesses became invaluable to my own growth as a business owner. Through the examples they set, I can honestly say that I am a better CPA with a stronger firm because of these basic concepts I saw develop in their own experiences and my own.
Most businesses begin small. At least my own accounting company did, and the businesses I advised were no different. There was not a huge purse of money that guaranteed our success, nor an investor that backed our plans. My first lesson stemmed from this reality: in the face of such risk, business owners must believe in their own abilities. Even when the money’s there, if the entrepreneur lacks the confidence in their endeavor, the business will fail. This truth becomes even more evident when the financial safety nets are not present, and the belief in oneself becomes almost literally life and death.
So, the risks are big, but, again, our businesses begin small. I learned from my clients (and hopefully they learned from me) that this means that businesses begin in small ways. With seemingly simple steps. Across the board, all the businesses I advised, including my own, demanded two “small,” often overlooked habits of their owners in order to succeed.
The first: listen.
Many business owners have such a strong vision and passion for their plan that they are sometimes in jeopardy of closing off any deviation based on learned information. They must have their ears open, become a full time learner, and base their decisions on the things that they learn.
Second, a business owner cannot learn if he doesn’t have people with whom to converse.
No matter the business, knowing others in the industry and building a rapport with them is exceedingly important. Cultivating that network leads to opportunity and ultimately the more experienced members of the industry will teach the newcomers either through collaboration or competition. There are multiple ways to build this network. Sometimes this necessitates “sucking it up” and attending a networking event or a conference, but even more importantly, sometimes it demands taking on clients at a lower cost or discounting key stakeholders in your industry.
As I worked alongside these new businesses, I also noticed more practical similarities. Each industry has its own set of regulatory standards. It is extremely important to become aware of the entire code of operation and even understand the reasons behind that code. One step outside of compliance could fold a business. An owner must educate themselves on these standards. This also includes tax considerations. Every business has different tax consequences. That is why I believe securing a trustworthy accountant is important to a young business, while also choosing the right software to fit the needs of the business. The industry standard for this is Quickbooks, but many young businesses do not need a system that is that robust (or expensive). I will often point my clients in the direction of Wave, as a safe and less expensive (it’s free!) option.
I learned that whether you’re starting your own accounting firm, opening a consignment store, or launching a security company, there are basic practical commonalities to success. I’m glad I listened to my own advice, and learned from my clients.
Michael Shane Moore CPA, weekend cycler, family man, outdoorsy Floridian.
