CPA Helps Business Owner Reach Goals
A Designer’s Vision: CPA Helps Business Owner Reach Goals
Janet began her interior design business three years ago with a promising idea. The designer planned to work three days a week and help families achieve the home of their dreams by offering them her experience and creativity.
But, as happens often with small business owners, the dream didn’t quite come true. Instead of working three days a week, she found herself balancing a 70 hour work week while looking after her three children.
At the end of the year, Janet met with her CPA to review her accounts and tax position. The good news: she was profitable and had cash in the bank. The bad news: she confided she was becoming more and more unhappy with the business. She even said she thought about selling it.
The CPA talked to her to help align her business and personal goals. Together, they discovered that:
- Janet’s overriding motivation was to make enough money so that she could spend more time with her children
- She had taken on all comers and felt obliged to squeeze in more and more clients
- Her brand in the marketplace was premium, but her pricing did not reflect that
- By running the numbers together, they found that 23% of Janet’s clients had contributed 82% of her profit the previous year.
Following the session, Janet agreed to work with her CPA redesigning the business to suit her lifestyle goals, by starting with the numbers and going from there.
Not surprisingly, revenue jumped significantly as a result of understanding the numbers. But more importantly, within 12 months, Janet had her life back, meaning she could be with her kids more.