Thursday, August 15, 2019

Majority of Recent Graduates Plan to Start a Business: AICPA Survey - Yahoo Finance

Majority of Recent Graduates Plan to Start a Business: AICPA Survey - Yahoo Finance


Majority of Recent Graduates Plan to Start a Business: AICPA Survey - Yahoo Finance

Posted: 15 Aug 2019 04:00 AM PDT

Be your own boss, CPApowered.org is here to help with free resources. (Graphic: Business Wire)

NEW YORK--(BUSINESS WIRE)--

Free AICPA tools and resources available to offer guidance and help new businesses get off the ground

The entrepreneurial spirit in America is alive and well. As they prepare to enter the workforce, seven in ten (70 percent) young adult job seekers say the freedom of being their own boss is worth more than the benefit of job security working for someone else. Additionally, more than half (53 percent) said they are likely to start their own business in the future.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20190815005075/en/

This, according to research conducted by MAVY Poll on behalf of the American Institute of CPAs (AICPA) among millennials who graduated from college in the last 24 months or will graduate in the next 12 months and are currently looking for employment – referred to as "young adult job seekers."

"It's not surprising that the generation currently entering the labor market is looking beyond the traditional approach of rising through the ranks in a well-defined career path," said Gregory Anton, CPA, CGMA, chairman of the AICPA's National CPA Financial Literacy Commission. "Developments in technology and the internet have made it easier than ever to start a business. However, they have not necessarily made it easier to succeed."

Small Business Startups Don't Need to Go It Alone

Ambitious young entrepreneurs are not alone. Each month, approximately 540,000 people become new business owners. Contrary to the commonly-held belief that most businesses fail to gain any traction, according to the Small Business Administration (SBA), roughly 80 percent survive the first year. However, the success rate of small businesses begins to fall sharply as time goes on. Only about half survive past the five-year mark, and beyond that, only about one in three get to the 10-year mark.

"I don't know of anyone who sets out to start a business that closes in three years. But the reality is, the first few years are almost always the hardest. That means every financial decision needs to be well thought out, with a clear eye to the future." said Teresa Mason, CPA member of the AICPA PCPS Executive Committee. "Working with a CPA helps small business owners ensure their business plan is structured to be as tax-efficient as possible. CPAs also partner with business owners to help them work out their cash flow consideration and opportunities for growth."

For those looking to start a business, the AICPA's National CPA Financial Literacy Commission share these tips to help to set yourself up for success:

1. Start with a Solid Financial Foundation
"The stronger of a financial foundation you build early in your career, the more options you'll have in the future. Paying off your student loan debt, getting a head start on saving for retirement and having an emergency fund affords entrepreneurs a degree of flexibility that they wouldn't otherwise have." - Gregory Anton, CPA, CGMA, chairman of the AICPA's National CPA Financial Literacy Commission

2. Ask Yourself the Tough Questions
"Being your own boss means looking only to yourself for the income you'll need to meet your obligations and save for your goals. This means asking yourself some tough questions. Do you have enough set aside to cover your expenses during a potentially slow start-up period that new businesses often face? Do you have a 'Plan B' in the event that your expectations aren't realized within a reasonable time frame? Address these scenarios proactively and have a plan in place." – Neal Stern, CPA member of the AICPA National CPA Financial Literacy Commission

3. Prepare for All the Costs Involved
"Before going out on your own professionally, it is important to compare your current budget with your forecasted budget. Know what you are currently getting verses what you may or may not have available if you start your own business. For example, if your current employer provides healthcare, retirement benefits and pays for out of pocket expenses-- you will now need to factor those expenses into what it is going to cost you to be on your own. These expenses can quickly add up which is why talking to a CPA about the costs involved in running your own business is critical." – Michael Eisenberg, CPA/PFS member of the AICPA National CPA Financial Literacy Commission

4. Keep Finances Organized & Build an Emergency Fund
"Maintain a bill-paying checking account where all your fixed monthly bills with a due date and a consistent amount are paid. Make sure that account always has at least 2 months' worth of bill payment money in it, ideally 3+, and set up as many as you can for auto-pay on their due date. This not only helps eliminate late fees, but it's an easier way to quickly see how much is 'leftover' to reinvest in your business. It can be tempting when you get a big check to take care of that month's bills then spend the rest on wants, but until you can consistently keep 3+ months of expenses in that account, you have to resist the wants. This will give your business the chance it needs." – Kelley Long, CPA/PFS member of the AICPA Consumer Financial Education Advocates

5. Take Advantage of Free Tools & Resources
For those who want help turning their idea into a successful business, the AICPA's #CPApowered website provides free tools designed to help small businesses grow. Experienced CPAs share insight on a range of topics such as the risks involved in starting a business and how to acquire financing. And to help those who don't know where to begin, there is even a small business checklist. The AICPA's 360 Degrees of Financial Literacy website also features free resources including information about how to plan for a career change as well as a wide-variety of calculators on topics like loan repayment and setting a monthly budget.

Methodology
This MAVY® Poll was conducted online within the United States from September 17 through September 28, 2018 using The Agency's proprietary on-line community, supplemented with sample provided from Pegasus™ by InnovateMR. The poll was distributed to 1,984 young adults between the ages of 18 and 34 years old, with 547 respondents who have graduated from college in the last 24 months or will graduate in the next 12 months. Of those, 413 respondents indicated they are currently seeking fulltime employment. This report contains the results from those respondents, referred to as, 'Young Adult Job Seekers.'

About the American Institute of CPAs
The American Institute of CPAs (AICPA) is the world's largest member association representing the CPA profession, with more than 429,000 members in the United States and worldwide, and a history of serving the public interest since 1887. AICPA members represent many areas of practice, including business and industry, public practice, government, education and consulting. The AICPA sets ethical standards for its members and U.S. auditing standards for private companies, nonprofit organizations, federal, state and local governments. It develops and grades the Uniform CPA Examination, offers specialized credentials, builds the pipeline of future talent and drives professional competency development to advance the vitality, relevance and quality of the profession.

About the Association of International Certified Professional Accountants
The Association of International Certified Professional Accountants (the Association) is the most influential body of professional accountants, combining the strengths of the American Institute of CPAs (AICPA) and The Chartered Institute of Management Accountants (CIMA) to power opportunity, trust and prosperity for people, businesses and economies worldwide. It represents 657,000 members and students across 179 countries and territories in public and management accounting and advocates for the public interest and business sustainability on current and emerging issues. With broad reach, rigor and resources, the Association advances the reputation, employability and quality of CPAs, CGMAs and accounting and finance professionals globally.

View source version on businesswire.com: https://www.businesswire.com/news/home/20190815005075/en/

Small business owners’ advice for expanding in a downturn - Washington Post

Posted: 14 Aug 2019 12:37 PM PDT

NEW YORK — Many small business owners decide to expand their companies even as they see the economy starting to slow, but some are proceeding with caution. Here are tips from owners and consultants about how to expand in a downturn:

— Keep a lot of cash in the bank. "Before you start taking risks, make sure you have a comfortable amount of reserves," says Gene Marks, owner of The Marks Group, a small business consulting firm in Bala Cynwyd, Pennsylvania. Even companies that aren't expanding need extra cash in the event of a downturn. And if you do expand, don't go too heavily into your reserves to fund it.

— Be selective about who you work for. Screening customer and client prospects to improve your chances of having those who pay on time and won't flee when the economy weakens can help keep cash flow healthy. Monica Guzman Escobar, owner of Los Angeles-based public relations firm Startr Co., interviews her prospects to be sure they're serious, well-funded and well-managed.

"You can never be 100% certain of this, but by doing our homework in advance, we hope to work with clients who are also being strategic and smart about the future so that we do not grow our business around instability," Escobar says.

— Expand in a way that will make your business more recession-resistant. Jacob Landis-Eigsti, owner of Jacob LE Video Production in Lakewood, Colorado, wants to bring in more revenue, but he's focusing more on consulting rather than video production. Consulting pays more, and clients are more likely to need that kind of service rather than video production in a downturn.

— Don't be cautious to the point where you unnecessarily inhibit your growth. Owners may be conservative about expanding their payrolls, not wanting to take on more expense or risk. But Marks advises, "never walk away from a really good strategic hire. Find a way to make it work."

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Follow Joyce Rosenberg at www.twitter.com/JoyceMRosenberg . Her work can be found here: https://apnews.com

Copyright 2019 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

New small business services coming to the North Peninsula - Forks Forum

Posted: 14 Aug 2019 01:30 AM PDT

Aspiring entrepreneurs and early-stage small business owners on the Olympic Peninsula are slated to receive expanded business advising services this fall.

Duane Fladland, state director of the Washington Small Business Development Center (SBDC), has announced that the SBDC is partnering with the Center for Inclusive Entrepreneurship to provide early-stage advising to entrepreneurs who have an idea for a business but don't know where to start.

"The entrepreneurial spirit is integral to the communities of the Olympic Peninsula," Fladland said. "With local funding support from Clallam County, the Port of Port Angeles and the cities of Sequim and Port Angeles, we are excited to be able to provide additional expert advising, tools, and resources that small business owners can trust to help them start and grow their business."

The Center for Inclusive Entrepreneurship (CIE) has been working with aspiring entrepreneurs and early-stage small businesses in underserved communities on the Olympic Peninsula since 2013. This fall, CIE's Community Enterprise program will start offering ongoing training and one-on-one advising on the Olympic Peninsula out of a new Port Angeles branch office.

"Through the Washington Coast Works Sustainable Small Business Competition, the Olympic Wildcraft Alliance, and other initiatives, CIE now has nearly 100 clients on the Olympic Peninsula at various stages of launching and growing a small business," says Mike Skinner, CIE's founder and executive director. "We're excited to collaborate with SBDC to provide ongoing support for our existing clients and to bring our accessible and inclusive first-step approaches to more folks in the region."

CIE's Community Enterprise program will kick off in September with the First Step training, a no-cost four-session course that helps aspiring entrepreneurs pencil a business idea and get to a quick "go-no do" decision. Starting in Sequim, the course will be offered monthly both virtually and at various locations throughout the North Peninsula. Already existing early-stage businesses can go straight to one-on-one advising to get ready to grow.

CIE's office will be co-located with the SBDC at 338 West First Street in Port Angeles. While CIE will focus on aspiring entrepreneurs and early-stage businesses, the SBDC will focus on helping existing businesses expand exponentially to bring new jobs and new investment to the region.

The collaboration will create important synergies and offer a seamless continuum of services from startup to growth. "Our intention is that by locating CIE adjacent to the SBDC, we will create a mini-hub for small business development," Fladland said. "We believe that bringing CIE to the North Peninsula will produce a multiplier effect that spurs economic growth."

The Washington SBDC has been providing no-cost, confidential, one-on-one advising to small business owners across the state of Washington since 1981. SBDC advising is funded through contributions from institutions of higher education and economic development agencies and civic groups, with matching funds from the U.S. Small Business Administration. Washington State University provides administrative support and oversight for the entire Washington SBDC network.

For more about the Washington SBDC, visit www.wsbdc.org. For more information about the Center for Inclusive Entrepreneurship, go to www.cie-nw.org.

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