Entrepreneurship can be a fulfilling, exhilarating, and yes, challenging experience. While many business owners start with big dreams and hopes for success, the reality is that one in five new small businesses shutter their doors in the first year, and 50% do so within five years.
Forbes names lack of knowledge and financial preparedness — including unrealistic cost and revenue projections, and an insufficient financial cushion — as some of the factors impeding entrepreneurial success.
To address these issues early on, Robert Madzej, a seasoned business advisor at BlueShore Financial, based on the North Shore, recommends taking the time to thoroughly evaluate a business idea from many different angles before moving forward.
For someone embarking on entrepreneurship for the first time, this should include seriously considering whether they’re truly cut out for the ups and downs of owning a business, whether it is a new startup or an existing business or franchise, and the reasons why they want to pursue this path over traditional employment.
“Being a small business owner often requires passion, creativity, a higher level of risk tolerance, and the willingness to pivot and adapt to a changing landscape at times. I help my clients weigh the risks and benefits of running their business, and navigate important decisions,” Madzej says.
Entrepreneurs usually have to wear multiple hats, often taking care of bookkeeping, sales, fulfillment and more. Many are so busy putting out fires in the present that it’s hard for them to also invest the time in looking ahead. “At the beginning, business owners don't always factor in every cost associated with services that can either save them time or potentially save them money,” Madzej explains. He can advise clients in identifying their unique business needs, and help them map out a plan for success for the years ahead.
Investments are an important piece of a businesses’ financial security, and often clients need guidance in optimizing their portfolios. “I have one client that had a strong business, and they had been growing. They had a holding company that was accumulating a lot of the returns, so I connected them with our wealth group to help find more ways to grow their investments, but also minimize the tax implications of those investments,” Madzej explains.
For entrepreneurs who’ve hit a plateau, a fresh perspective with ideas for new revenue streams can be all that’s needed to reinvigorate the venture. “I like to plant seeds to encourage my clients to think creatively about other aspects and avenues that they may not have thought of that could help them save money or grow their business further,” Madzej highlights.
And behind many successful businesses is a team of trusted insurance, tax, accounting, and legal experts who can help protect and optimize an organization’s assets. As an experienced advisor based in North Vancouver, Madzej can draw on his rolodex of local connections to guide business owners in assembling a highly knowledgeable business advisory team that includes vetted professionals, setting clients up for a prosperous future.
To learn more about how BlueShore Financial can help set up your business for success, visit Blueshore Financial.
