Entrepreneurial Itch: Don't Scratch Until You Read This Book by David TrahairEntrepreneurial Itch: Don't Scratch Until You Read This Book by David Trahair

Entrepreneurial Itch: Don't Scratch Until You Read This Book

byDavid Trahair

Perfect | October 1, 2006

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Statistics show that 90% of businesses fail within their first five years of operation. What is the story behind these intimidating odds? Every year, unsuspecting entrepreneurs show up at their banks asking for small-business loans. The problem is that far too many people go into business without doing thorough research into what it really takes to be successful. The best way to learn is to learn from someone who has worked with hundreds of small businesses. In this new book, small-business accountant and author David Trahair lays out in plain language everything that no one else tells you about starting a business. Trahair stresses that it's important for most people to start their business first as a side job. The owner should market and develop the business until it becomes strong enough to survive those crucial first years, and profitable enough to provide an income for the owners. Trahair also offers excellent tips on what the major franchisors will never tell you. - 20130509
David Trahair is a chartered accountant with more than 20 years’ experience in accounting, finance, and tax. He has made many television appearances as well as being a speaker on numerous radio programs. He is also a feature writer on the web at Moneysense.ca and Microsoft.com, and he offers useful financial information on his website,...
Title:Entrepreneurial Itch: Don't Scratch Until You Read This BookFormat:PerfectDimensions:176 pages, 9 × 5.95 × 0.37 inPublished:October 1, 2006Publisher:Self-Counsel PressLanguage:English

The following ISBNs are associated with this title:

ISBN - 10:1551807351

ISBN - 13:9781551807355


Table of Contents

1 WHY DO YOU WANT TO BE SELF-EMPLOYED? 1You Hate Your Job 1You Hate Aspects of Your Job 2The commute 2Annoying coworkers 2Making money for others 3You Lose Your Job 3Your Life Changes 4Maybe You’ve Just Got the Urge 4Why Listen to Me? 4The Self-Employment Alternative 5Do You Have the Entrepreneurial Itch? 7How This Book Will Help Scratch Your Itch 7vCONTENTS2 WHAT DOES IT TAKE TO SUCCEED? 9The Key to Success 9Attributes of a Successful Entrepreneur 10Attributes of a Successful Business 12Leg 1: Operations 12Leg 2: Selling and marketing 13Leg 3: Finance and administration 143 WHAT DO YOU WANT TO DO? 17“A Restaurant Sounds Good” 18Something Old? Something New? 19Research, Research, Research 20The Business Plan 23Research Should Never End 25Niche Today, Gone Tomorrow? 26What is good about a niche? 27Always be thinking about your next niche 274 IF YOU CAN SELL, YOU’LL DO WELL 31What Doesn’t Work 32The mailing list 32Expensive one-time advertising 33Newsletters 33Build a website and they will come 34What Works (for Me) 35Personal contacts 35The story of my dentist 36Other Keys to Marketing Your Business 375 GIVE YOURSELF A CHANCE:START ON A SHOESTRING 41The Home Office 42Advantages of a home office 42vi The entrepreneurial itchDisadvantages of a home office 42Start-up Costs 43Why Not Get the Bank to Help? 44Where Does Cash Come From Besides a Bank Loan? 45Your savings and “sweat equity” 45Friends and family 45Credit cards 46The bank again 46The Cash-Flow Crunch 47Tips for easing the cash-flow crunch 47Track your daily cash flow 496 BOOKKEEPING: LIFEBLOOD OF A BUSINESS 53Basic Accounting Concepts 53Accrual accounting 54Debits and credits 55Financial statements and journal entries 56Equity 57Capital assets, amortization, and depreciation 58Bookkeeping for Sole Proprietors 59Recording business finances separately makestax time easier 60Recording business finances separately gives aclearer view of your personal finances 60Recording business finances separately lets yousee how your business is doing 61Act Like a Corporation 61Bookkeeping Made Easy 62Invoicing and accounts receivable 62Paying bills 63Other bookkeeping entries 63A word about using spreadsheets for bookkeeping 64Contents viiSetting Up Your Books 65Bookkeepers versus accountants 65The chart of accounts 66Schedule C — Profit or Loss from Business (US) 66Form T2124 — Statement of Business Activities(Canada) 67Group your expenses 68Focus on the Key Numbers 71Improving the Bottom Line 72Increasing revenue 72Cutting the right expenses 72Keeping Current Is Key 747 AIM FOR THE IDEAL BUSINESS 75The Ideal Client 75Pick and choose your clients 77Make sure your clients are in a solid industry 77Get Others to Do the Work 78What kind of help do you need? 79When can you afford to hire someone? 79Competing with You Is Difficult 80Your Whole Family Is Not Tied Up in the Business 81Could It Be Web-Based? 818 RUN YOUR BUSINESS; DON’T LET IT RUN YOU 83Juggling Three Balls at Once 84What’s On Your Dashboard? 85My dashboard 86Other useful information 88The Early Stage 88The Growth Stage 89viii The entrepreneurial itch9 IT’S NOT THE TIME, IT’S THE EFFORT 91The Good Old Hourly Rate 92Disadvantages of Hourly Billing 92It focuses on hours, not results 92It limits the amount of money you can make 93Billable hours become more important thanbusiness growth 94It treats customers unequally 94It doesn’t reward the “finding” function 95It penalizes technological advances 95Hourly Billing Versus Set Fees 95Setting an hourly rate 96Going beyond time 97Value points 97Time-Tracking Secrets 98Keep track during the day 98Use increments of less than one hour 99Track chargeable and nonchargeable time 99Time-Tracking and Reporting Software 100What to look for 101The quest for five-star time-tracking andreporting software 101Why I chose BillQuick 10310 INTEGRATE YOUR LIFE WITH YOUR BUSINESS 109Life Tip 1 — Do What You Don’t Want to Do First 111Life Tip 2 — You Get What You Expect 111Life Tip 3 — Balance Is the Key 113Life Tip 4 — Plan on a Weekly, Not a Daily, Basis 113Life Tip 5 — Be Flexible with Your Time 114Life Tip 6 — Don’t Be Afraid to Ask a Stupid Question 115Contents ixLife Tip 7 — Stay Away from Those Who Say YouCan’t Do It 116Life Tip 8 — Don’t Be Afraid of Your Competition 117Life Tip 9 — Leave Lots of Time for CompletingEach Task 118Life Tip 10 — Don’t Wait for Everything to Be Perfect 11911 THE MILLIONAIRE DREAM: I’LL SELL IT ANDGET RICH! 121Business Valuation Methods 121Business valuation method 1: Profit multiple 122Business valuation method 2: Book value 124Business valuation method 3: Service business 125Are You Building It to Sell It? 126Make it work without you 126Make it big enough 127Take time for planning 12812 COULD A FRANCHISE BE FOR YOU? 131What Is a Franchise Anyway? 131Advantages of a franchise 132Disadvantages of a franchise 133How Much Is a Franchise Worth? 135Questions to Ask Before You Buy 136Watch Out for Scams 137Examples of franchise fraud 138How to spot a scam 139The Five Most Frequently Asked Questionsabout Franchises 140Where can I get a company’s presale disclosuredocument? 140How can I find out if there have been complaintsagainst a company? 141x The entrepreneurial itchHow can I file a complaint against a company? 142How do I know what must be included in adisclosure document or offering circular? 142How can I find a lawyer who specializes infranchising? 14313 THE SELF-EMPLOYMENT PENSION PLAN 145Cushy Pension Plans Are Dying Out 145Keeping a Job Is Getting Tougher 146What Are You Going to Do? 146Freedom 55? 147I Love What I Do Now — Why Stop? 14814 DO YOU STILL HAVE THEENTREPRENEURIAL ITCH? 151FIGURES1 Cash versus accrual method of accounting 552 Sample journal entry: Income 563 Sample journal entry: Expense 574 Balance sheet 585 My dashboard 876 BillQuick work in progress report 1057 BillQuick write up/write down report 1068 Sale price based on a percentage of future billings 126 - 20110713