OINP Business Plan - Ontario

XXXX, Chartered Accountant Company A., Accounting and Advisory Business Plan

Executive Summary

I am XXXX, a Chartered Accountant by profession and a member of The Institute of Chartered Accountants of India which is one of the most prestigious accounting qualification recognized across the globe having more than 200,00 members globally. I am looking to start my accounting and advisory business venture in Ontario, Canada through Ontario Immigration Nominee ProgramEntrepreneurship Stream (outside GTA). I will be making an investment of CAD 300,000 in the business that will be invested from my personal funds to establish this new venture. I have over 20 years of experience in accounting, finance, strategic consulting and financial management through my own Chartered Accountant firm KJMA & Associates Chartered Accountants. Having experience working for a variety of clients over the past 20 years I have gained diversified experience in multiple fields related to financial management, accounting, bookkeeping, taxation and strategy development that will help me to establish this business in Canada where I will be providing these services to my new clients through dedicated setup in Ottawa, Ontario.

Company A, Chartered Accountants will provide accounting, bookkeeping, advisory, consulting, tax services along with other business services to small, medium sized as well as corporate businesses across the country. Initially, I will be hiring three full time accountants including a senior accountant along with one office assistant and one marketing manager working with me on this venture. My aim is to further increase employment and contribute towards economic growth by hiring new resources in future that will help business to grow over time and achieve long-term sustainable growth.

CAD 486K

Cash balance after 4 years of operations

3% Growth in annual revenue

100% Gross Profit

9% Average Net Profit after depreciation

CAD 57K

Net Profit – 4th Year

Business Model

OEP Requirements Review

Business experience

I have fulltime experience of working as a lead partner of YYYY in India that has given me an experience of more than 20 years of directly managing accounting, audit, bookkeeping, financial management and other related services. Thus, my experience and expertise are completely relevant to establish this business in the country.

Net worth

Since I would be setting in Outside Greater Toronto Area therefore the net worth requirement of CAD 400,000 would apply in my case and my net worth is significantly higher than this.

Personal investment funds and minimum equity

I will be investing CAD 300,000 in the business with my own equity that will help me to get 100% of the business.

Active involvement

I will be actively involved in the management of the business as the Chief Executive Officer since my experience and expertise are in accounting & finance operations, business valuations, expansions & startups, corporate strategy development and other such accounting and finance services segment has helped me to gain significant experience in this field.

Capital investment purpose

The investment will be made in setting up the business in outside GTA including procurement of computer equipment, office equipment and required leasehold improvements including procurement of furniture for setting up the office.

Job creation

Since our business will be located outside the Greater Toronto Area therefore the requirement is for 1 full time job but I will be creating five permanent full-time job for Canadian citizen or permanent resident in the very first year through my investment of CAD 300,000. This job creation within the first year of establishing the business will help me to take a significant share of this market.

Business Model

Critical Success Factors

Access to highly skilled workforce: An appropriately qualified and trained staff is essential to carrying out the complicated services provided by accounting firms.

Iwillbehiringfivefulltimeemployeesinthefirstyearthatwill includeoneexperiencedaccountingprofessional,twomediumlevel accountingindividuals,oneofficeassistant,andonededicated marketingmanagerhavingrelevantexperiencewhocanworkwith theteaminidentifyingnewclientsandcreatingaloyalcustomer baseforthebusiness.

Well-developed internal processes: Given the labour-intensive nature of the industry, accounting firms need to monitor a project's cost and time effectiveness, to ensure profitability and cut back on waste.

Iwillbepersonallymonitoringalltheworkastheorganization structureisleanwhereIwillbemonitoringtimespendbythestaff oneachproject,ensuringcost-benefitanalysisoftheprojectalong withcreatingSOPsenablingustoeffectivelymanageourworkload andcreateprofitableoperations.

Effective quality control: Effective control procedures that are in place are essential to ensure a commitment to quality and to comply with regulations that pertain to practices in this industry.

Iwillensurethatstrictqualitycontrolsareinplacewithmonitoring ofsenioraccountantandmyselfthatwillhelpprovidehighquality servicestotheclientwithoutanyerrorsoromissions.

Value Proposition

• I will be providing accounting services based on cloud solution i.e. Xero, QuickBooks, Xero, Oodoo and other software as per the client requirements that will help small, medium sized as well as large customers to maintain their data on cloud along with implementing latest accounting system in their organization.

• I will be giving clients flexibility through working as per the availability of data. My team would be working with them in order to ensure that their timelines are followed and work is performed within the agreed timelines.

• I will be providing new entrepreneurs with various analytics regarding their business, sales patterns, expenses and a way through which they can reduce their expenses to achieve long-term and sustainable growth over time. My experience of more than 20 years will help me to guide these businesses of how they can create value for their customers and the advantage they will get over a longer period.

• I will develop a long-term partnership with my customers that will help them to reduce their expenses through appointing us for their monthly bookkeeping & accounting services.

• I will have a cloud database available and the clients will have access to their data 24/7. I will provide them with their data and reports as requested.

Business Model

Services Description

Our service offerings will include:

• Startup Services

• My firm will be offering consulting, accounting, taxation, bookkeeping, IFRS assessments, GAAP assessments, and services with respect to preparation of financial statements for small, medium sized as well as corporate Canadian businesses effectively managing their books of accounts as per local laws and regulations. For the clients in their initial period, I will be working with them to provide services with respect to preparation of their complex business plan including extensive market research, PESTEL analysis, SWOT analysis, competitive analysis, risk management, cash flow analysis, evaluation of market demographics, etc. I will also provide them bookkeeping and accounting services during their startup phase enabling them to manage proper books and complying with the local laws and regulations.

•

Regular Business Operations

• I will be identifying businesses in need of monthly bookkeeping and accounting services that can outsource this function, reduce their cost and create a mutually beneficial relationship. My aim is to help them identify their major cost centers, reduce those costs including reducing the accounting cost and working towards creating a sustainable organization that would achieve growth and focus on its core business operations.

• Growth Period

• My services will include providing growth oriented businesses to help them in their financing needs when they want to expand their business. This includes helping them to identify the investment needs in new capital assets. I will be working with them to develop tailored business strategies that will help to achieve their growth potential. Developing complex financial models, understanding growth indicators, potential return on investments and indicators like internal rate of return that would help them to decide on whether they should opt for an expansion or not. I will also work with them to provide a comprehensive pricing structure based on possible discount levels that they can pass on to their customers in order to make a scalable business. Thus, I believe that my accounting and business counselling experience of has helped me where I can provide these individuals to transform their business into profitable entities.

Business Model

Service Proposition

Resources

I will be investing CAD 300,000 in this business to get it started in outside GTA.

Quality

I will ensure that our business services exceed customers’ expectation and we add value in their businesses.

Service Proposition

Scalability

We will be creating scalable business through hiring high quality human resources including senior accountants.

Source: Forbes

Responsibility

I will be responsible for managing the entire establishment of this business.

Customer Reach

Our location is in Outside GTA Toronto and thus it will help us reach a wide market of customers requiring services for SME & corporate.

Business Model

The Entity

I will establish my business as a sole proprietorship where I will own 100% of this business through the personal investment of CAD 300,000 in Ottawa, Ontario, Canada.

I will make this investment to fulfill the requirements of the Ontario Entrepreneurship Stream as I want to establish a leading accounting, bookkeeping, tax services and business consultancy service provider organization in Ontario, Canada. The aim is to create a business that helps Small and Medium Size Enterprises (SMEs) as well as large corporate houses in catering to their needs of business services through a professional staff that can understand their needs in either accounting or finance or consulting or preparation of complete IFRS/ GAAP compliant financial statements.

The business structure will be kept simple as I will be directly responsible for all business development, monitoring operations, and the business ownership. My position will be Chief Executive Officer due to my extensive experience while working as the lead partner of my firm in India.

I will initially rent an office space for six to eight individuals that can have a meeting room designed to cater the meetings and other requirements of a professional firm. My focus is to create a win-win situation for myself as well as Canadian economy where I will be contributing towards the economic growth of this country through bringing investment as well as establishing this profitable venture.

Business Model

The Location

I will be renting out an office location in Ontario which is outside GTA and I have identified a convenient location that is 1 Nicholas St. that fits my budget as well as my requirements of top-rated place that I can start my services with.

Following are some of the benefits on offer:

• Close to Gatineau

• Easy access to Highway 417 and routes around the canal

• Adjacent to Rideau O Train Station and STO

• Surrounded by amenities, restaurants, nightlife and entertainment.

The building has plenty of offices available for lease. We will be taking one with around 1,100 sq ft with rent amounting to CAD 31 per sq ft per annum that would make annual rent to approximately CAD 34,000 per annum.

We will be making certain modifications in the office for catering to our requirements in form of a store for any accounting data, hard copies or other working paper location in order to secure the hard data of our valued customers. We believe that this central location in Ottawa will help us to cater major market segment enabling prompt customer visits, meetings and ensuring that we remain connected with them through out this period.

Business Model Procurement

I will be making procurement of more than CAD 110,000 for establishing this business in Ottawa, Ontario. Following are some of the items that I will be purchasing: •

Business Model

Industry - Accounting & Bookkeeping Industry

Over the five years to 2019, an expanding Canadian economy, in addition to an increasingly complex regulatory and tax structure, has bolstered demand for the Accounting Services industry in Canada. As a result, industry revenue is expected to rise an annualized 3.7% to $13.9 billion over the five years to 2019, with an expected 3.0% growth in 2019 alone. Industry growth has been propelled by an increase in the total number of Canadian businesses, which expanded the potential pool of clientele for accounting firms. Operators in this industry provide a variety of services, including the financial statement preparation, budget development and the review of auditing records for small, medium and large businesses.

Over the past five years, this diversity of services has helped provide a steady stream of revenue. In times of economic growth and improving investor optimism, the industry experiences a jump in revenue from assurance-related work, as accountants provide expertise for mergers and acquisitions, initial public offerings and other capital market structuring. Moreover, the industry is increasingly offering tax and consulting services designed to help multinational corporations navigate an increasingly complex tax and regulatory environment.

Industry revenue is projected to grow an annualized 2.7% to $15.9 billion over the five years to 2024. Anticipated growth in the total number of Canadian businesses will underpin industry revenue growth. Additionally, as multinational companies expand into Canada, they will rely on domestic accounting firms to provide insight into federal tax incentive programs. Similarly, as Canadian companies expand overseas, accounting services firms will be needed to advise businesses on global tax issues, such as transfer pricing.

Business Model

Industry Outlook

Revenue for the Accounting Services industry in Canada is expected to increase at an annualized rate of 2.7% to $15.9 billion over the five years to 2024.

A healthy Canadian finance and insurance market, along with a continuation of high global demand for Canada's commodities, will drive revenue for accounting firms, as the industry's major players experience an anticipated increase in assurance service revenue. Additionally, an expected increase in the total number of Canadian businesses will expand the pool of industry clientele, as new businesses require budgeting and financial statement analysis. Moreover, although fees for auditing services have experienced declines over the five years to 2019, this staple accounting service is projected to pick up as an anticipated increase in corporate profit will give companies the financial freedom to choose an accounting firm based on considerations of quality of service, rather than strictly price. Furthermore, a change in regulatory and tax structure will boost revenue for new accounting services, such as tax and regulatory consulting.

Business Model

Key Trends

New opportunities emerged as conventional lines of business marginally improves with an overall improvements in the business environment that has helped accounting and consulting firms to improve their businesses in Canada

Diversification in accounting practices has been essential to industry growth that includes focusing on delivering long-term strategic plans to SMEs creating scalability in their businesses, identifying digital marketing strategies as pivotal for long-term success.

Operators will remain profitable despite economic volatile conditions as accounting services are needed to ensure compliance of statutory regulations

Transfer pricing is a crucial issue for corporations with far reaching implications and we will be working with businesses in identifying transfer pricing strategies that could help the business achieve growth and stability

The industry's diverse services will continue to provide consistent streams of revenue to accounting service providers Source: IBIS World

Business Model

Industry SWOT

Industry Strengths

Low Imports since all the services are to be provided in Canada through two full-time employees to be hired in Canada

Medium & Increasing Assistance needed to businesses in order to align their accounting function

Low Volatility since customers needs consistent accounting services

High Profit

Low Customer Concentration

Low Product Concentration

Low Capital Intensity

Industry Opportunities

High Short-term Growth

High Outlook Growth

Demand from oil and gas extraction

Industry Weaknesses

Low & Increasing Barriers to Entry

High Competition

Low Labor Efficiency

Industry Threats

Low Long-term Growth

Outlier Growth

Low Performance Drivers

Number of businesses

Business Model

Key External Drivers

Number of businesses

An increase in the total number of Canadian businesses promotes further demand for accounting services, as new businesses demand financial statement analysis, budgeting, transaction and auditing services. The number of businesses is expected to increase in 2019.

Corporate profit

An increase in corporate profit margins enables businesses to spend more freely on traditional accounting services, such as audits and value-added accounting services, including financial strategy development and consulting. Therefore, a rise in corporate profit positively affects revenue for accounting services. Corporate profit is expected to decrease in 2019, posing a potential threat to the industry.

Demand from mining (except oil and gas)

The mining sector accounts for a significant share of Canada's GDP. In addition, mining companies have consistently comprised a high proportion of Canadian initial public offering (IPO) filings and valuations over the five years to 2019. Publicly traded mining companies rely on accounting services, such as financial statement preparation and audit reviews. Therefore, a rise in demand from mining companies leads to an increase in revenue for the Accounting Services industry in Canada. Demand from the mining sector is expected to decrease in 2019.

Demand from oil and gas extraction

Similar to the mining sector, oil and gas extraction companies account for a significant portion of Canadian GDP and have composed a large percentage of Canadian IPOs, in terms of new filings and overall valuations. Companies in the oil and gas extraction industries rely on accounting and audit services. Therefore, a rise in demand from these downstream industries will increase revenue for the Accounting Services industry in Canada. Demand from the oil and gas extraction sector is expected to increase in 2019, representing a potential opportunity for the industry.

Market Analysis and Risk Management

Industry Competition

Internal competition

Operators in the Canadian Accounting Services industry compete by service and price. The quality of service is essential: clients tend to change their accountants because they are dissatisfied with the level of service, rather than change accountants to obtain a lower price. Corporations commonly retain auditors and accounting services firms for extended periods of time. However, price-based competition for traditional accounting services has remained high since the 2009 recession, as many businesses looked for ways to cut costs.

Despite this, brand recognition still plays a significant role in the auditing process, as most large corporations insist on having an audit by one of the industry's largest companies. These companies have the capacity to audit the largest of clients and the networks that can provide services on an international basis. Brand recognition is often associated with credibility. The importance of governance, risk management and more comprehensive tax standards in Canada and the United States, has shifted the competitive emphasis in tax-related accounting services toward quality.

External competition

The Accounting Services industry in Canada experience limited competition from companies outside of this industry. Accounting firms also provide advice outside traditional accounting services. Therefore, the industry endures competition and has emerged as a significant competitor to the Management Consulting industry in Canada (54161CA), which provides consultation on management issues including financial planning and budgeting. Unlike the United States, Canada has no regulatory prohibitions that preclude auditing firms from providing consulting services to companies they audit. Accounting firms now offer services such as business process management, regulatory and legal consulting, competing head to head with the Canadian Management Consulting industry.

Source: IBISWorld Research

Market Analysis and Risk Management

Market Share Concentration

The Accounting Services industry in Canada has a moderate to low level of market share concentration, with the four major players in the industry representing just over 40.0% of revenue in 2019. The amount of mergers and acquisitions the industry's largest players has increased over the five years to 2019. Large accounting firms, such as Deloitte Touche Tohmatsu Limited (Deloitte) and Ernst & Young, have engaged in a series of strategic acquisitions in an effort to expand their geographic reach across Canada. The larger players compete to win highvalue clients and usually acquire businesses outside the industry scope of service. These acquisitions later converge to industry-related revenue share, when new or existing clients expand the scope of work contracts to include accounting services. Furthermore, Deloitte acquired 21 companies globally in fiscal 2018 (year-end June) with notable acquisitions in Canada, such as Cornerstone Group of Companies, a Toronto-based digital marketing and analytics firm; Integrity-Paahi Solutions Inc., a leading information security provider; and Market Gravity, a design consultancy with Canada operations. All of these acquisitions enhance Deloitte's digital analytics, branding and portfolio of services to acquire new businesses and increase the market share of the industry. Although larger clients favour the more established accounting firms, the majority of the industry comprises small establishments and over 95.0% employ fewer than 20 people. These companies have low costs to operate and generally provide services to small- to medium-sized businesses.

Source: IBISWorld Research

Business Model

Demand Determinants

Regulatory and compliance mandates provide consistent demand for traditional services provided by the Accounting Services industry in Canada.

Over the past decade, clients often retained auditing firms for extended periods, guaranteeing a dependable stream of revenue for an accounting firm. However, in times of economic duress, such as Canada's 2009 recession, corporate clients became more price sensitive in searching for a competent auditor. As a result of high competition and a more value-conscious clientele, fees for audit services have barely kept pace with inflation over the past years to 2019.

Certain services offered by accounting firms are countercyclical, such as demand for insolvency and receivership services. During the Canadian recession, as business bankruptcies increased, accounting firms saw a rise in revenue related to these services. However, revenue from insolvency services are short-lived; accounting firms initially receive fees for performing bankruptcy or receivership work, but they lose long-term revenue streams when the client no longer needs service on an annual basis.

Demand for other services, such as corporate tax preparation services, moves in line with economic growth and is sensitive to changes in the global equity markets. For example, assurance-related revenue for the Accounting Services industry fell, as the European debt crisis spurred volatility in the Canadian and global stock markets and depressed the volume of initial public offerings. An increase in global trade has also benefited this industry. To handle the complexity of international tax structures and regulations, large accounting firms are hired to advise multinational corporations on the tax and regulatory implications of expanding overseas.

Business Model

Competition

Welch LLP

Welch LLP is a Chartered Professional Accounting firm that provides a full range of accounting, assurance, tax, advisory, and specialty services. Welch offers private enterprises, government, and not-for-profit organizations industry specific services and knowledge with a relationship-driven approach to client service. Their in-house experts allow them to identify industry related issues and develop solutions with ease. Their expertise is offered at a cost that makes sense without you having to sacrifice service quality.

123 Slater Street, 3rd Floor

Ottawa, ON K1P 5H2

AZA Accounting Firm

They are a boutique firm for local businesses and organizations. They have developed a reputation of service quality and excellence. They strive to exceed expectations in every interaction and work meticulously to create tailored, practical and organic solutions for their clients.

Contact Information

855-561-2388

contactus@azaccountingfirm.ca

azaccountingfirm.ca

Houle & Associates

Houle and Associates is a premium chartered professional accounting firm based in the Ottawa area. Our team of accountants are experienced, knowledgeable, and available when you need them. We pride ourselves on providing each and every one of our clients with custom tailored solutions for their tax and financial planning needs. It is our focus to develop strong, long lasting relationships with all of our clients. By understanding your goals and objectives, we can help you plan for continued and long lasting success.

Address:- 2280 Walkley Road, Suite 212, Ottawa, ON - K1G 6B1

Email:- info@houleandassociates.ca

Phone Number:- (613) 736-5363

Fax Number:- 613 736 5381

Business Model

Problem Solving

Low cost accounting & bookkeeping

Businesses need proper accounting and bookkeeping solutions while keeping their cost down. One of the major issues faced by SMEs & quite recently the corporate customers while starting expansion project or a startup idea is the management of accounting and bookkeeping for the new business. Thus, we aim to reduce their cost, provide them competitive pricing enabling them to give their bookkeeping, accounting and tax service work to my new firm. Hence, we will be helping them by providing them low-cost bookkeeping and accounting services and reducing their startup costs.

Complete Taxation Services

All businesses wants to comply with all the Canadian tax laws and thus need guidance and help from a person or company that can provide them tax services while keeping their expenses on a lower side. Canada’s taxation system is not that complex, but compliance with the tax laws is mandatory for every individual. SMEs as well as corporate customers in Canada face various issues with respect to taxation services and thus we will be helping them towards computing their tax liabilities along with and filing their income tax returns in a nominal fee that will help them to comply with tax laws along with reducing their expenses.

Creative Solution

Businesses in the current era need creative solutions for starting new ventures and thus need advisor that can provide out-of-the-box solution. We will be working with these businesses in providing them creative solutions through comprehensive business plans that can help them to understand their business in dept and create a sustainable organization.

Market Analysis and Risk Management

Marketing Objectives

Build Brand Image

Increase Sales Revenue

Increase Sales Revenue

My aim is to develop a sustainable revenue stream for the business that will be achieved by increasing the number of SME & corporate customers of my firm that can help create a long-term business model for generating profitable operations.

Build Brand Image

The efforts of developing an effective brand image will go a long way toward highlighting our services in Canada where I aim to provide accounting, bookkeeping, taxation, financial management, strategy development to businesses as they achieve growth and prosperity in their businesses.

Build Awareness Forward Looking

Build Awareness

We aim to develop an awareness of our accounting and bookkeeping services by promoting our pricing features and the development experience that will help us establish a market presence and eventually establish a small market share in the growing Canadian accounting industry.

Forward Looking

Our marketing aim is to show our clients the future expansion strategy that our organization will focus on, as it will include hiring one senior accountant, two accountants and a full-time marketing manager in the business.

Marketing Strategy

Marketing Strategy

Direct Marketing Activities

One of the most important business tasks is to perform direct marketing activities in Ottawa, Ontario. This will be one of the major marketing tasks as I will be involved in performing following from the beginning:

• Develop direct marketing strategy enabling us to generate new leads, provide them overview of our services and work towards changing them from leads to customers

• Develop direct marketing strategy that will help us create relations with large corporate customers requiring tax as well as outsource accounting services

• Develop a marketing strategy to connect with customers that will help in resolving their issues promptly enabling them a fair review of their financial statements

Customer Base Development

Our marketing strategy involves creating a loyal customer base that will help us establish our position in the market by providing:

• High quality accounting, bookkeeping, taxation, financial consultancy and other business services that will compel them to use my services for their businesses as I will be hiring local marketing manager that can help create a customer base enabling growth and prosperity

• Pricing point will help us to gain market share and increase our presence as a leading accounting service provider in the region

Participation in Marketing Events

My marketing strategy will include participating in various business conferences across Ontario as well as Canada that will help establish the brand image of this business, which will help increase relations and customers requiring my services. I expect this business model to provide value to the customers, and our marketing strategy will help us focus on meeting and creating loyal customer base.

Marketing Strategy

Marketing Mix

Product/Services

We will start an accounting, bookkeeping, financial advisory, tax services and business consultancy in Ottawa, Ontario that aims to focus on providing SMEs and corporate customers to outsource their accounting function, reducing their overall costs and providing growth opportunities to new accounting firms in Canada.

Price

The pricing strategy will be set in in order to capture the market through penetrative pricing strategy that aims to reduce the initial pricing for our accounting and bookkeeping services, getting the customers use our firm and working towards creating a long-term relationship with new customers.

Place

Promotion

The company will promote its services using digital marketing strategies that will help it increase awareness in the SMEs & corporate businesses across Canada, increase market visibility, and create a lasting impact on customers by providing them services that will enable them to comply with laws and regulations as well as without reducing your cost.

Place

We will start our operations from Ottawa, Ontario by establishing an office and hiring the required human resources to begin the provision of accounting, bookkeeping, taxation, business advisory and other related services.

Price

Product Promotion

Business Model

Operational Flows

Pricing strategy

Our pricing strategy will be competitive as we will be focusing on increasing the number of customers, creating growth through increasing volume and create a sustainable customer base for the business.

Establishing partnerships

My plan is to develop partnerships with SMEs as well as corporate sector across Ontario as they move from in-house accounting function to an outsource accounting partner.

IT Equipment Maintenance

We will be hiring third party service provider for maintenance of our IT software as well as hardware infrastructure.

Marketing

Initially, I will be doing extensive marketing efforts in Ontario that will help me to increase number of leads, identify potential customers and working towards increasing the revenue base of the business.

Insurance

I will be having third party insurance for my business as it will help me to reduce any potential losses.

Financial Management

The financial plan is my strength and thus I will ensure that financial risk management is performed effectively throughout the operations.

Business Model

Business Strategies

Our accounting, bookkeeping & tax services business will work towards generating revenues in excess of CAD 500K from the first year of operations enabling us to create jobs, execute our business model, focus on marketing our services and ensuring that we provide high quality accounting, bookkeeping and tax consulting services to our clients.

Strategic

• To develop a business that aims to cater to accounting & bookkeeping services needs of SMEs as well as large corporate sectors of the country

• To provide best-in-class consulting services to clients enabling them to change their existing strategy and move towards growth & sustainability

Managerial

• To ensure complete understanding of client’s accounting needs, their budget, timeline and ensuring that we work as per their expectations

• To be in sync with the latest changes in the taxation structure and modifying our services accordingly

Tactical

• To provide excellent service to our customers ensuring that all their requirements are addressed in a timely manner enabling effective provision of accounting services to all the customers across Ontario

• Build good reputation by ensuring complete client satisfaction

Business Model

Further Development

The primary strategy for the future development will be to increase the number of customers & employees over the next five to ten years. This expansion strategy will help us to create sustainable model for long-term income generation in Canada. I want to ensure that the profits generated from the business are poured in the business again enabling a continuous growth trajectory for achieving long-term sustainability.

Increase the number of employees from 5 in the first year of operations to 10 in the first ten years of operations ensuring the customer services are improved and consistently maintained enabling to achieve loyal customer base

Promoting one of the employees to general manager level in order to create growth opportunities to the staff that will help them increase their professional profile

Making further investment from savings created and even working towards expanding in other Canadian states

Creating growth from expanding business across Canada

Business Model

Milestones

Short-term Milestones

▸ Investing in the business for getting the location, procuring office equipment, procuring furniture, hiring staff and starting the operations

▸ Hiring five full-time employees and creating an opportunity towards employment creation in Canada that includes accountants, assistant and marketing team led by Mr. Alamgir.

▸ Increasing the revenue through developing partnerships with businesses and completing client’s work as per agreed delivery schedule and ensuring excellent customer services

Long-term Milestones

▸ Establishing my career and my reputation locally by increasing the client base and creating sustainable business in Canada

▸ Providing five full time job positions to help to manage the accounting, bookkeeping, tax and advisory business. Initially I would be hiring five full-time staff and then in next five years I would be hiring another full-time team enabling me to grow my operations and creating growth for the business.

▸ Expanding the business model by providing services across North America and thus focusing on US clients to outsource their business to our venture.

Economic Impact

Canadian Economy

Short-term Impact

▸ Immediate investment of CAD 300,000 through my own resources and contributing this investment for the overall growth of Canadian economy including creating employment in the country

▸ Hiring five full-time employee in the 1st year and further increasing employment in the country over the next five to ten years. The ticket relates to the

▸ Contributing to the growing economy of the country through capital investment as well as through creating employment opportunities in Canada

Long-term Impact

▸ Increase in the overall GDP of Canada by increasing service revenue in the next five years and providing job opportunities to five full time employees ensuring long-term growth in business

▸ Increasing the employment opportunities by working towards providing accounting services across North America specially focusing on SMEs that will help create sustainable business model

▸ Contributing to the economy by increasing employment and establishing a model that can grow over time and increase employment

Business Model

Business Strategies

Customer Management Strategies

✓ My strategy for this business it to ensure that customers are provided with complete information of our services at the very start including a format of financial statements (for accounting services customers). It will help us to provide them an understanding of our services and enabling them to assess our level of accounting and bookkeeping service.

✓ I want to develop reputation as a leading accounting, bookkeeping and tax consulting service provider In Canada that works till the customer complies with all the regulations and has books of accounts complying with the local requirements.

✓ I want to provide customers with excellent customer services where they will be heard, any issue will be resolved, and we will ensure that they have an exceptional customer experience at all the times.

Human Resource Strategies

✓ Recruit five resources in the first year of operations and further increasing resources over the next five to ten years enabling us to become one of the leading accounting and bookkeeping service provider in Ottawa, Ontario, Canada.

✓ Keep all accounting staff as well as marketing manager updated with the accounting changes including changes in IFRS and applicable financial reporting framework, company policies, customer satisfaction, any unique offers to customers along with changes etc. The IFRS changes will be provided in a way that the marketing manager is able to identify any assessment of IFRS work that will help my business to achieve growth and sustainability in the long-term.

✓ Aim to provide them opportunities to learn and grow over time.

Long-term Partnership Strategies

✓ Working with small and medium sized customers, large corporate houses and other corporate customers across Canada and identifying partnerships that would be developed with them as it will help us to create long-term relations and sustainability in the business operations.

✓ Developing long-term partnership with communities in Ottawa, Ontario including SMEs, corporate customers and other such businesses where we aim to provide accounting, tax, bookkeeping and other advisory related services including business & financial planning

✓ We want to develop partnership with local trade associations that will refer us to their members needing low-cost and high-quality accounting & bookkeeping services enabling us to increase our customer base and ensure long-term growth.

Business Model

SWOT Analysis

SWOTAnalysis

Strengths

• My experience of leading an audit and accounting firm in India for the past 20 years as a partner is a clear testament of my skills and abilities. This also helps me to understand my target market, the strategy that I will be adopting for increasing the customer base and working towards creating a sustainable business model in Canada.

• Investment of CAD 300,000 in Ottawa will help me to hire five individuals dedicated in accounting and marketing function enabling me to compete with other big firms and creating a niche market for my services. I will be offering my new employment to Canadian citizens or permanent resident holders enabling me to establish this venture in Ontario.

• My strategy to hire one senior accountant and two more full time accountants in the first months will give me competitive advantage of focusing on high quality services and working towards creating a brand name for my services in Ontario.

Weaknesses

• A new place for starting a business has its own share of problems, challenges and thus it would be difficult for me to get the contracts initially but once the marketing manager executes the marketing strategy it will pave the way for increasing the revenue, establishing a customer base and creating long-term growth for the business.

• Finding top quality accountants with experience in tacking SMEs will be hard to find and thus could pose a major challenge for the business particularly those having experience of implementing new accounting standards in Canada.

Opportunities

• Growth opportunity with expanding accounting market in North America with 3.7% growth in last five years and expected growth rate of 2.7% in next five years will help me to establish a sustainable business model in Canada

• Serving the North American region through head quarters in Ottawa will provide an opportunity where my experience of past 20 years will help me to create meaningful partnerships within the accounting functions, refer clients to my organization and ensuring that we achieve our revenue targets in the long-term

Threats

• High competition from local and international companies, since accounting services have global as well as individual local competitors and thus it will be tough to compete with the firms having huge capital resources

• Continuous technological evolution makes it expensive to update the accounting software products if there is no scalability. Thus, my aim is to increase number of customers, work towards cloud software and ensuring that the customer data is safe and secure

Regulatory Requirements

Applicable Regulations/ Compliance Approach

Business License

Federal, provincial and municipal requirements vary for each business license type. We will be registering our business through Ontario province and completing all the legal formalities including:

• Business name registration

• Ministry fee for registration

• Business Identification Number (BIN) and Business Number (BN)

• Master Business Licence (MBL)

Municipal Registration

Since we will be operating an accounting firm therefore no zoning license or municipal license is required by the business.

Risk Management

Potential Risks and Mitigation Plan RiskManagement

SpecializedSkillset

Accounting, bookkeeping, financial reporting, taxation services and other related service providing organization that deals with these services in compliance with International Financial Reporting Framework is always in need of a certain specialized skill set that can take their work forward and create long-term growth for the business. I have developed a comprehensive strategy through which I will hire qualified human resources having experience in implementing IFRS including new standards like IFRS 9, IFRS 15 and IFRS 16 enabling SMEs to adopt to international reporting standards and creating a unique niche for our services that will help my business provide extensive services to the customers with an aim to improve the overall accounting and bookkeeping process. Furthermore, I will be hiring local Senior Accountant having experienced in tax matters enabling me to get customers requiring services for calculating and submitting income tax returns. This will help to mitigate the risk of loss of initial investment.

ITRisks

The risks that the entire IT system is impacted by external forces or hackers can impact the entire setup and operation of our accounting organization along with the risk of losing the trust by our valued clients. This risk will not only increase the reputational risk, but it will also impact the profitability to a greater extent. It is important for an organization like ours to understand the ITrelated risks and take measures to reduce them effectively. We will work extensively with cloud accounting system providers like Xero and QuickBooks to setup client accounts through remote servers, enabling safeguard of essential information and ensuring that our customer’s data is safe and secure at all the time.

UseofProceeds

One of the risks that we foresee is extensive competition from local competitors in accounting and bookkeeping services. It is important to understand that they have experience and expertise because of huge financial resources, along with extensive marketing that they have performed over the years. Their brand is already developed in Canada and thus they pose significant risk towards our business and its existence. In order to achieve success in the high competition mode it is important for me to execute the digital marketing strategy effectively. Therefore, I will be hiring marketing manager that will be responsible for identifying leads within SMEs as well as corporate sector, providing them brief overview of our services, identifying their needs and working with me towards increasing client base to increase our revenue and profitability.

Financial Planning

Sources and Uses of Funds

The total investment to be made in the business would be around CAD 300,000 from my own resources as it will fulfill the requirement of OES along with ensuring that I start this accounting and consulting business with a proper team that will enable growth and revenue generation for the business.

Total investment

Financial Planning

Projected Income Statements

I will be investing CAD 300,000 in setting up this accounting and bookkeeping business in Ottawa, Ontario, Canada. The profits would gradually increase over time and it is expected to reach more than CAD 57K by the end of fourth year of operations. Since I am applying through OEP therefore I need to create jobs, growth and work towards stimulating the Canadian economy. I will be investing in human resources by hiring five individuals in setting up this accounting and bookkeeping service business in the country. Following is the projected income statement of the business based on Stats Canada as per the size of entity that I aim to establish in Ottawa.

Financial Planning

Projected Cash Flows

The cash flows of the business will gradually improve over time since the business will be generating profits through increasing the customer base and ensuring that we provide accurate accounting, bookkeeping and financial reporting services. Following is our projected cash flow statement:

Financial Planning

Projected Balance Sheet

Financial Planning

Financial Planning

Assumptions

Revenue: We have reviewed the industry average revenues of top tier firms and we expect the same for our business due to the following strategies:

• Hiring one senior accountant in the first year along with two accountants that will help setup high-end accounting firm in Ottawa

• Hiring one marketing individual enabling us to market our services and gain substantial client base that will help us increase revenue and create sustainable growth

• We have taken 3% revenue growth as per estimation by IBIS world with respect to growth in accounting and bookkeeping services

• https://www.ic.gc.ca/app/scr/app/cis/performance/rev/5412;jsessionid=0001psRJwJD4MMsfk-2ijj0k9-6:G608B2?=undefined&wbdisable=true has been used to estimate the revenues to be generated by the business Salaries: We have done comprehensive research for preparing payroll plan with expected salaries taken from below:

• Senior Accountant:

https://neuvoo.ca/salary/?job=Accountant#:~:text=The%20average%20Accountant%20salary%20in,up%20to% 20%2487%2C500%20per%20year.

• Accountant:https://neuvoo.ca/salary/?job=Accountant#:~:text=The%20average%20Accountant%20salary%20in, up%20to%20%2487%2C500%20per%20year.

• Office Assistant: https://neuvoo.ca/salary/?job=Office%20Assistant

• Marketing Manager: https://neuvoo.ca/salary/?job=Marketing%20Manager

Marketing expense in the fist year is estimated to be CAD 35K and after that we expect to spend 10% for marketing our services as it will help us to generate revenues for the business.

Rent Expense has been taken from https://www.districtrealty.com/commercial-properties/property-listings/1-nicholas-street/ as per our expected office size of 1,000 sq. ft.

People Case

People Case

People Case

Compensation Plan

The personnel plan includes my salary along with salaries for five full time employees that I will be hiring in the first month of operations. I have not included my salary as part of investment rather it will come from profits generated from the operations. Thus, six months salary of other five individuals to be hired for this venture has been included in investment that I will generate for the Canadian economy. It is important to understand that the reason for generating revenue as per market norms is mainly due to the fact that I will be able to hire five individuals through investing around 300K in this business including one dedicated marketing manager responsible for the execution of entire marketing strategy.

Since I will be working as the CEO, I will not be taking a market-based salary as withdrawing significant amount from the business would reduce our ability to expand our business, increase marketing activities and create a sustainable organization.

Description

Chief Exeutive Officer

Remarks

As per market norms for startups

https://neuvoo.ca/salary/?job=Accountant#:~:text=The%20average%2

Senior Accountant

0Accountant%20salary%20in,up%20to%20%2487%2C500%20per%20y ear.

https://neuvoo.ca/salary/?job=Accountant#:~:text=The%20average%2

Accountant

Accountant

Office Assistant

Marketing Manager

Total Salaries

0Accountant%20salary%20in,up%20to%20%2487%2C500%20per%20y ear.

https://neuvoo.ca/salary/?job=Accountant#:~:text=The%20average%2

0Accountant%20salary%20in,up%20to%20%2487%2C500%20per%20y ear.

https://neuvoo.ca/salary/?job=Office%20Assistant

https://neuvoo.ca/salary/?job=Marketing%20Manager

People Case

Management Team

PERSONAL DETAIL:-

NAME:

ADDRESS:

Email: MO.:

MARITAL ST: MARRIED

EDUCATION QUALIFICATION:-

Member of Insititute of Chartered Accountants of India qualified by passing CA Final examinations in Jan 1997.

B.Com Honors 1985 - 1987 from GGDSD College, Chandigarh

Intermediate 1984 from GGDSD College Chandigarh

WORK EXPERIENCE:-