Start-Up Issues


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Starting out in business is complicated and confusing.  What do I do first?  What’s next? Learn the basics from having the idea to developing a plan.  Learn where to go to find capital, learn about negotiating contracts and working with customers, employees, and vendors.  Begin the process here in start-up issues. 

This website is designed to provide guidance and information for the small business owner.  These articles are in-depth in nature and oriented to educate the entrepreneur.  If you should have any questions, please contact me via e-mail – dave(use the standard ‘AT’ symbol) and I’ll get back to you in a short period of time.


  • How to Make Money in Business

    How to Make Money in BusinessIn my career as an accountant I’ve noticed the same 3 elements of all successful business operations.
  • Cash is King – The Value of Cash Flow

    Cash is King - The Value of Cash FlowFor any small business operation, getting cash into the bank account is critical to survival.  Without cash, the probability of success dissipates quickly.  So how do you get cash into the bank account?  There are several sources of cash: they include capital, loans and customer payments.
  • Basic Economic Principle of Time and Money

    Basic Economic Principle of Time and MoneyI have heard about 40 different folks try to explain economic principles to me and others.  Some were enlightening, others, well let’s just say they weren’t well read individuals.  But the best one I ever heard was a basic economic concept story of prostitution. 
  • Do I Need a Business Plan?

    Do I Need a Business Plan?Whenever someone wants to start a business, they ask their friends and professionals what they should do. The standard answer is always, ‘You need a business plan’. Really, do you? If I do, what is it and how do I proceed?
  • Research Your Business Plan – Part I

    Research Your Business Plan - Part IIf you read my section on ‘Do I Need a Business Plan’ and followed those steps, you are now ready for the next step in this process.  Hopefully two important barriers have been breached in your quest to be the next new business.  First, you have answered the most important questions of who am I ...
  • Research Your Business Plan – Part II

    Research Your Business Plan - Part IIThere is a process to determine the where of your plan. Sometimes it is obvious, if retail, then a retail location is ideal. If service and the customer travels to you such as a professional, then an appropriate office location is important. Focus on the type of office environment, medical should try to locate in ...
  • How to Find Investment Capital – The Family Connection

    How to Find Investment Capital - The Family ConnectionThere is one responsibility of all business entrepreneurs that is loathed more than any other.  It’s asking for money.  First off, you have to find financial resources and then you have to ask for money.  This article is dedicated to finding money and how to ‘ask’ for the money from a family member.  It is easier ...
  • How to Find Investment Capital – The Vendor Connection

    How to Find Investment Capital - The Vendor ConnectionAll vendors look for avenues to expand their market share or maintain their market share.  Many times it is to their benefit to provide start-up capital to potential point of sale opportunities.  If they can assure themselves of a long term buyer of their product or service, then they will give serious consideration to a new ...
  • Research Your Business Plan – Part III

    Research Your Business Plan - Part IIITiming is everything, you have heard this before.  Well, it is applicable here.  I once had a potential client come to me in the middle of June seeking my endorsement to his business plan.  He needed to borrow money for his idea.  He wanted to sell fireworks.  July 4th was less three weeks away.  I ...
  • How Much is a Fair Profit? Part I of V – Owner Compensation

    How Much is a Fair Profit?  Part I of V – Owner CompensationA fair profit for a small business is between 9% and 37%. 
  • How Much is a Fair Profit? Part II of V – The Economic Cycle

    How Much is a Fair Profit?  Part II of V - The Economic CycleOne of the primary purposes of a profit is to provide funds during downturns in the business cycle.  Often referred to as the economic cycle, there are two types of cycles.  The first is industry related.  The second is broader in scope and is economy wide.
  • How Much is a Fair Profit? Part III of V – Risk

    How Much is a Fair Profit? Part III of V – RiskA third factor in determining a fair profit percentage is risk.  Risk is divided into two types.  The first is insurable and the second is uninsurable risks.  Insurable risks are mitigated and have very little to no effect on the profit formula due to transferring the risk to a third party known as the insurance underwriter.  ...
  • Tax Basis of Accounting – Accrual or Cash

    Tax Basis of Accounting – Accrual or CashThis is the most often asked question by all new businesses.  Should I be on the cash or accrual basis of accounting for tax purposes?  The common layman would always answer ‘CASH BASIS’ for tax purposes.  They say this because they understand that you only pay the tax on the cash that you keep.   But ...
  • Three Primary Characteristics of Successful Businesses

    Three Primary Characteristics of Successful BusinessesOver the last 19 years of working in the world of accounting, I have become convinced that to be successful in business, you must have three primary characteristics.  It is the common thread that binds all successful operations in every industry I have witnessed.
  • People, Process & Product – The Profit

    People, Process & Product – The ProfitMarcus Lemonis is the star of a TV series show called ‘The Profit’.  He helps failing business turn around and become successful operations by fixing the three core elements of every business.  He refers to these elements as the 3 P’s: People, Process and Product.  It is an interesting show as it falls into the ...
  • Substitution Principle in Business

    Substitution Principle in BusinessThere are a multitude of principles used in business, some are industry specific, others are functions of business.  But there is one that is a general principle that is used across the board in all areas of business.  It is called the ‘Substitution Principle’.  It works just like the substitution principle in math that we ...
  • How Much is a Fair Profit? – Part IV of V Return on Capital

    How Much is a Fair Profit? – Part IV of V Return on CapitalFor all investors in business, capital is the fronted equity an investor risks in exchange for a return.  This return can range from zero to infinity depending on the success of the business.  A fair profit is really a function of four different factors.
  • Types of Business Models

    Types of Business ModelsIn business there are four distinct business models.  Just about any business can be identified with one of the four.  The following are the four types of business models: 1) Low-Volume, Hi-Margin, 2) Hi-Volume, Hi-Margin, 3) Low-Volume, Low-Margin and 4) Hi-Volume, Low-Margin.
  • Shareholder Dynamics in Small Business

    Shareholder Dynamics in Small BusinessThe majority of small businesses are owned by a single individual.  An additional pool is family owned or controlled.  The balance usually involves friends or relatives that are passive in ownership.  These forms of ownership create some interesting shareholder dynamics and if not thought out, can create some legal and financial issues in small business ...
  • Mission Statement

    Mission StatementA mission statement is a written document identifying the businesses’ primary reason for existence.  It should convey the core values and the principles of the company.  It should be reviewed with staff frequently to remind everyone of the chief goals of the company.  
  • Microbusiness

    MicrobusinessMicrobusinesses are all around us.  Often overlooked and rarely given a second thought they are the backbone of our economic system.  From the local beauty salon to the Mom and Pop pizza shop; microbusinesses are everywhere. Microbusiness is defined as the small closely held operation that provides a family a supplemental or primary source ...
  • Stock – Fundamentals of Ownership and Control

    Stock - Fundamentals of Ownership and ControlThe basic principle of stock is an ownership right of a company based on the percentage of outstanding shares in possession.  It is essentially a mutual understanding between shareholders that each investor’s percentage of ownership is similar in rights based on that percentage of ownership.
  • What Startup Owners Can Learn from Expert Traders

    What Startup Owners Can Learn from Expert TradersWhen it comes to managing a successful business, expert traders can teach entrepreneurs a thing or two about how to gain from a competitive market. It may not be too obvious, but trading and entrepreneurship have much in common. In fact, some of the most successful investors and traders have started their own profitable companies, ...
  • Feedback Loop in Business – Identification and Parameters

    Feedback Loop in Business - Identification and ParametersThe goal of accounting is to make continuous improvements in operation by monitoring economic results over a period of time.   Any changes to economic value is analyzed for impact and the source of the change.   In effect, management is constantly tweaking the business to gain marginal improvements via  financial results.
  • Business Barriers

    Business BarriersNo business is instantaneously successful.   There are multiple obstacles referred to as barriers all owners and managers have to overcome.   There are three primary groups of barriers for every business out there.
  • Business Leadership Tips

    Business Leadership TipsBeing a boss or business owner is easy. Being a leader; that’s a whole different story. It can be challenging to become capable of motivating & inspiring staff. Is this what you want to achieve? Look no further.
  • Three Ownership Interests Exist as an Entrepreneur

    Three Ownership Interests Exist as an EntrepreneurThere are three distinct ownership interests with a closely held company. There is an economic expectation, a right to manage the company and right to hold the ownership position as an asset.

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