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Friday, Mar 29, 2024

MANAGING RISK

Brian Ring works with entrepreneurs as a partner in the assurance services practice of national accounting firm Ernst & Young. He says the most successful entrepreneurs establish a support system and maintain a strong vision as their companies grow, so the business continues to thrive in a charged, innovative environment. Question: Working with entrepreneurs must be different than working with Fortune 500-type corporate executives. How so? Answer: You are dealing directly with the decision makers. These are individuals who take risks on a daily basis. These guys are out there creating jobs and taking risks. The personalities you get to meet are unbelievable. Q: How much do new entrepreneurs know about managing their finances and accounting? A: The business always runs faster than the financial side. It’s not true in all cases. Obtaining capital and getting the business running is where they are devoted — taking their product and getting it into the marketplace. But they need help… from inception to initial seed capital to growth of the company. These individuals, at some point in time, are looking for an exit strategy. We help them along that entire process. Q: Do they consider tax implications when starting a business? A: The accounting side is important to the entrepreneur, but what’s also important is the tax side. They are usually closely tied. Sometimes that is more important to the individual than the pure accounting back office. Q: Has your work inspired you to start a business? A: I don’t know if I am as much of a risk taker as I see in those entrepreneurs. Q: What role do professional advisers play in helping entrepreneurs to shape and grow their business? A: The entrepreneur who surrounds himself with a good team tends to be the most successful, versus those who do it lean and mean and do everything to the point where they are still signing checks. Q: Why is Southern California a good market for entrepreneurs? A: It’s the variety of what we have out here. It is a hot bed for technology, life sciences, entertainment. I think every major industry is based in the greater Los Angeles area. The financial services is the probably the only side where we’ve seen a lot of exits over the years, but that is coming back.

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