BBC #11: 4/30/13

For the 11^th meeting of the Baltimore Business Club, we held several brief discussions on a few topics as well as a keynote discussion from Joe Brusak of Brusak and Associates, a startup accounting firm Joe began in 2012.

Google Fiber, Mike Kirby

Google recently launched their own internet and television provider, Google Fiber.  The service claims to provide internet 100 times faster than currently available, while providing crystal clear HD TV.  Aside from the fact that the speed is significantly better than the offerings by other companies today, Google also has a plan that will allow people to have FREE Internet.  You won’t get the same features as with a paid package, but free internet is already starting to change the game.  Below is the original article that piqued my interest, and forecasts that this network google is setting up (currently building out Kansas City, Austin, and Provo) is eventually going to lead to free wifi in fiber cities anywhere you walk in that area.

http://readwrite.com/2013/04/19/the-genius-of-google-fiber

How to Build a Startup Free Online Class, Seth Franz

Seth recently stumbled upon an article by Inc.com that showcases 8 free classes anyone in the process of starting a business should consider taking.

http://www.inc.com/julie-strickland/8-free-online-classes-for-entrepreneurs.html?nav=pop

We reviewed the “How to Build A Startup” class and watched a 5 minute segment of the class.  Most of this particular class revolves around a new business model that many top tier universities and companies are utilizing over the traditional business plan.  The model is also featured in the book “Business Model Generation” and we touched on it at the 2^nd BBC meeting when we modeled out the business model for Chris Diller’s band, Railaway.

The segment we touched on illustrated a startup business based on renting sports jerseys and went through the significant changes the startup went through after implementing the business model over a traditional business plan.

Reinvent Transportation Baltimore, Ian Johnston

Ian discussed some of the highlights of a hackathon/weekend long discussion at Betamore designed to help reinvent Baltimore transportation from April 5^th-7^th.  Ian, owner of Bowtie Bike Cabs, went to the third day and discussed some of the ideas, changes, and new businesses related to Baltimore transportation that were being worked on over the weekend.  Ian also got a nice tour of Betamore (BBC meeting #5).  Ian was also able to get Bowtie listed on a mobile app that shows when and where his cab is available for rides to users of the application.  To learn more about the event, check out https://reinventtransit.com/.

Brusak and Associates, Joe Brusak

Joe Brusak led the main discussion and talked about his experiences starting his accounting firm, Brusak and Associates.  Joe is a CPA, holds a Master’s degree in taxation, and has been in the field for 8 years.  Before making the decision to start his own firm, Joe worked for a large accounting firm for several years.  It provided him with a strong background and level of experience.  However, like many people who decide to go out on their own, Joe eventually grew tired of the hours (billable and non-billable) and felt that he had a better opportunity to achieve his goals by branching out on his own.  Joe made some early decisions with Brusak and Associates that have helped him grow at a good pace, and most importantly, maintain cash flow.  Rather than quitting his job at the large accounting firm, Joe left and took a 40 hour accounting job at Hopkins.  This significantly reduced his hours so he could work on developing his business on the side, and provided him with regular income so he could build his firm and gear up full time once he built a solid customer base.  On top of his Hopkins job, he also took a part time accounting job at another firm.

It is certainly a difficult thing to hold two jobs while starting your own business, but by sacrificing free time to slowly build his own client base, Joe seems to have set himself up for success and to eventually be running his firm full time.  It is a lesson many others can use when considering their own ventures.  From August 2012 through now, Joe picked up about 50 clients, mostly doing individual and small tax work.  To secure his first clients, he tapped into family and friends.  This led to referrals and that is where he now (and most accounting firms) derives most of his business.

Many members of the BBC have started or explored launching a business, and it is no small feat to pick up this type of client base, especially while doing so part time.  The success has Joe in a position where he feels he will be leaving his part time position at the local firm relatively shortly.  Joe also made it clear that his current employers are aware of his side firm and has worn only the “hat” of his employer when working with those clients.

The goal for Brusak and Associates is to turn it into a firm that offers a wide arrange of services focused on taxation and financial planning.  Many firms do not offer this type of all-inclusive advisement services and is one way he plans to set himself apart from other firms.  Brusak and Associates has and is continually developing their expertise to look at the full financial picture of the clients and he hopes to grow his client base into a mix of individuals and small to mid-size businesses.