Six Steps to Small Business Success: Start, Manage, and Exit Your Business: 5 CPAs on Entrepreneurship - Softcover

Bert Doerhoff, CPA, started his own CPA firm in 1978 and his firm was later named one of the top fifty most innovative firms in the nation by CPA Digest. David J. Lucier, CPA, is an entrepreneur, real estate investor, and business adviser who has worked with hundreds of start-up and emerging companies over the past thirty years. Lowell G. Lillge, CPA, started his own accounting firm in 1983, specializing in bookkeeping, tax preparation, and accounting and has worked with hundreds of clients. R. Sean Manning, CPA, owns an accounting firm and either owns or invests in several other businesses. In 2008, his firm was awarded Innovative Accounting Firm of the Year. C. Gregory Orcutt, CPA, has owned an accounting firm for over twenty-five years. He was recently awarded the Small Firm of the Year from the Professional Association of Small Business Accountants.

BEFORE YOU READ THIS BOOK

We intentionally designed this book so that you can jump in and start with the chapter that fits where your business is today. Whether you're just developing a business idea or you're looking to sell your ongoing enterprise, the sections of the book can be used as you see fit.

Of course, we think everyone can probably gain from reading the whole book, because there are lots of golden nuggets throughout. However, to get the most immediate impact, you might want to ask yourself the following questions to get a sense of where you may need the most help. In general, your answer to the questions will help you determine the steps and chapters of the book that may be of most interest to you. For example, what consumes most of your time in your current business? Is it managing employees, trying to grow sales, or putting out day-to-day fires? If you decide employees are your biggest problems, then skip to Step Three on human resources to get some immediate relief. Then you can go back and pick up on other key areas. Now let's look at the six key steps of the book and examples of day-to-day questions that each step will address.

STEP ONE: Pre-Business Planning
First, there is the excitement of all the planning that goes into starting your own business. A little planning on the front end goes a long way to ensuring that the dream you pictured becomes a reality. Many businesses fail because the entrepreneur is a technician skilled at producing a particular business service or good but not necessarily a capable businessperson. So if you're starting a new business, take a few minutes and learn from the experiences of others who have succeeded there. Step One will help you answer these questions:

- Do you know what type of business or service best fits your dream?
- Have you selected the right business for you?
- Have you evaluated yourself for small-business success?
- Do you have the right form of doing business (corporation, sole proprietorship, etc.)?
- Do you have the right advisers supporting you?
- Should you look at a franchise, buy another business, or start from scratch?
- Do you have a business plan in place?
- Do you have a strategic marketing plan in place?
- Do you have the correct partnership agreements in place for multiple owners?
- Do you have the right tax structure for your business to minimize income taxes?
- How do you coordinate business and family life?

STEP TWO: Start-Up: Finances, Budgets, and Number
Once you start the business, there are certain key fundamentals and tracking mechanisms you must put in place to keep things on track and grow the business. Business success is a constantly moving target, so you have to take the time to learn what your tracking mechanisms and your customers are telling you. Step Two will help you answer these questions:

- Do you have the right type of financing and business loans?
- Do you know how to read financial statements and understand what they can tell you about your business?
- Do you know what the key operating statistics are for your business?
- Do you know how you compare to industry standards?
- Do you know what your tax liability will be for the current year?
- Have you considered your options for commercial real estate?
- Do you have the right insurance coverage?

STEP THREE: Human Resources: The People Factor
Hiring, training, and firing employees are all necessary parts of running a business. Step Three will help you answer these questions:

- How do you go about screening, interviewing, and hiring employees?
- Are you paying a fair wage and competitive benefits?
- How are you training your new employees?
- Are you managing your employees effectively?
- Do you know the right way to terminate an employee to protect yourself?

STEP FOUR: Operations: Work Flow, Customers, and Sales
Daily operations involve numerous decisions about your products, services, and customers. Step Four will help you answer these questions:

- Do you have systems in place so that your product or service is consistent?
- How do you manage your customers, grant credit, and respond to customer service issues?
- Do you have a sales and marketing plan in place, and do you adjust for market changes?
- Do you know when to expand your business?

STEP FIVE: Building a Salable Business and the Sale
Once you have the business running smoothly, you need to plan for the eventual sale. Growing that salable business takes some planning. Then, once you decide to sell the business, there is a whole new set of issues: What is it worth? How do I transfer the customers to the buyer? What about the employees? How do I negotiate the terms of the sale? Step Five will help you answer these questions:

- Does your business run smoothly without you?
- What is your business worth?
- Have you managed your debt so that you can afford to sell your business?
- How can you minimize the tax consequences of a sale?
- Who are the buyers for your business?
- What do you need to know to negotiate a sale contract, and who should be involved?
- How do you transition your customers to a new owner of your business?
- How do you transition your employees to a new owner of your business?
- What should you expect in the sale documents, and how will you structure the monetary transaction?

STEP SIX: Transitioning to Life after Business
Once you've made the decision to sell, how do you manage the transition for everyone involved? How will you adjust to your life after the business? Step Six will help you answer these questions:

- What do you need to know about wealth management?
- How do you adjust to life after work?
- How do you pass your values on to your kids?
- How do you leave a legacy after you’re gone?

Now pick the area that will have the most immediate impact for you, and start reading.

One last thought: Dream big, but always break down your dreams into small steps, because small steps are easy to achieve, and a lot of small steps equal one big step, and a lot of big steps equal your dream.