Think about a business that you want to start …
Now think about how you are going to start this business …
Alright, now think about what kind of work you will be getting yourself into if you started up a business all by yourself…
Fast forward 1 year… Imagine that you somehow survived a whole year of running this business and you managed to rack up enough money to pay off your expenses, awesome you broke even! BUT WAIT! Suddenly, you realize… you have kids to feed, you have bills to pay, you have to buy your mom a birthday gift because her birthday is in 2 days! And guess what?! Your money that you earned for the whole year from that business, has been used for the expenses of running your business!!
What does this mean?! Well, it looks like you’re gonna have to find other ways to get additional money.
You decide to make a note of yourself, I’ll try to increase my revenues next year so I can ACTUALLY PROFIT and have money to pay for all my lifestyle expenses.
But guess what? Your business failed, you filed bankruptcy, your wife (or husband) left you with the kids, your mom didn’t call you back, sad life isn’t it? You’re probably wondering why your business failed… Well, it’s probably because you don’t have a CPA or Management Accountant to support your startup company!
In the article provided by Samantha White and Jack Hagel in the CGMA magazine (Issue 1- 2016), called “How Management Accountants can Support Start-Ups” explains how accountants and CFOs are very beneficial and important to the survivability to a startup business.
Entrepreneurs who start up their businesses ventured into the business world to bring in new innovative creations and services to themselves wherever they can. According to CGMA magazine, 36% of businesses fail within the first two years of operation (The owners probably went through the same rough situation as the above blog post).
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