The first 90 days - why new businesses fail

Many businesses owners launch their business and go directly to work for their customers; they quickly get busy dealing with performing the product or service that they offer -  which is of course a fantastic position to be in.

However, sooner or later, paying due diligence to the routines required to run a business soon catch up with them. HST reporting comes along, payroll needs to be handled, cash-flow squeezes create sleepless nights, time becomes scarce and as a business owner you find yourself constantly doing the urgent rather than the important.

Peace of mind and a well run business start with careful planning. If you create a clear blueprint of exactly what you will do in the first 90 days of business, then you will stay in control of your business, your time, your money and most of all, your peace of mind.

It is never too late to create the plan, but the sooner the better, as the quicker you have your business structure in place, the easier it will be to focus on doing what you do best.

“Get the facts. Get the real facts. Not the hoped for facts, the assumed facts, or the possible facts. Get the real facts. Facts don’t lie.” Harold Genneen of ITT

Each year your accountant produces a set of financial statements that you are required to submit to CRA and perhaps your bank. Do you know how to read those statements? Are there other “numbers” that you should be reviewing? How often should you review the numbers?

Don’t worry one bit if all of the above seems confusing; you are not alone. Many business owners have absolutely no idea how read a financial statement let alone analyse the story the numbers present.

In order to develop your business into a successful, stable financial position, you need to understand the numbers of your business. They will enable you to understand exactly where your business financial health is. Accountants & bookkeepers are there to help you gather the numbers, YOU are responsible for leveraging these numbers to understand where your business is and how to get it where you want to be – and keep it there. Knowing the numbers is also beneficial if you are looking for capital or for an exit strategy. 

It is absolutely essential for your success that you know the financial facts of every aspect of your business, especially your cost to produce and offer your product or service and the prices you charge for what you sell.