The Money Problem Every Service Business Faces | Michael Yasny

Hosts: Percy Barr, Wayne Pratt and Bernie Franzgrote

Michael Yasny from Money Consultants breaks down the team, financing, and cash flow decisions every new business owner needs to get right from day one.

GROWTH CATEGORY: Sales & Revenue

Brought to you by Canada Growth Network, Profit10™, and Property Wizard Podcast.

Most new businesses don't run out of ideas. They run out of money. And most of the time, nobody warned them it was coming. Michael Yasny has spent decades helping new businesses, growing businesses, and businesses in financial trouble find options they didn't know existed. In this Canada Growth Network session, he walks through the real steps — the ones most owners either skip or get wrong — and what it actually costs when you do.

Watch the full conversation here:

WHO THIS IS FOR

SMB owners / Solopreneurs / New business owners / Anyone already running a business who wonders where the money keeps going

Key Lessons

1. Build the team of three before you open the door

Every new business needs three people in place before day one: a corporate lawyer, a business accountant, and a business advisor. Not a coach — an advisor who understands financing, bankruptcy law, and the full financial picture. Your accountant is not going to find you financing. Neither is your lawyer. That's the advisor's job. And here's a quick test for the accountant: ask them if you should incorporate on day one or wait until you're bigger. If they say wait, find a new accountant. Incorporation is your first line of insurance — it separates you from the business and limits your personal liability on everything except what you specifically guarantee.

2. Cash is king — and asking for less money than you need is a trap

Most owners underestimate what they need and then ask for less because they think it's more realistic. If you need $200,000, ask for $200,000. If you ask for $100,000, that's your ceiling. When the business runs out of money, the doors close — not because the idea failed, but because the cash ran out. Michael also covers options most owners don't know exist: SBL loans in Canada where you can access up to half a million dollars and only guarantee 25%; factoring and purchase order financing that can be cheaper than a bank line of credit when you do the math properly; and structured loans from family and friends that protect both sides.

3. Perceived value matters more than low pricing

Michael tells the story of a product he sold for $29.95 that moved slowly. He raised it to $39.95 — sold more. Raised it to $49.95 — couldn't keep it in stock. The product didn't change. The price did. Being the least expensive is not a strategy. Know what you need to charge to stay in business, work with your advisor and accountant to get that number right, and stop carrying products or services that don't make money just to keep clients happy.

Practical Steps

1. Get your team of three in place this week
Book a meeting with a corporate lawyer and a business accountant before you sign anything or open anything. Ask the accountant the incorporation question. If they pass, keep them. If they don't, move on.

2. Run the real financing numbers
Sit down with a business advisor — not a coach — and map out exactly how much money you need. Then ask for that amount. Add a buffer. Explore SBL loans, EDC, BDC, and alternative options like factoring. Know what you're guaranteeing before you sign.

3. Review your pricing against your costs
Go back to your accountant and advisor and look at what you're actually charging versus what it costs to deliver. Cut the products or services that aren't making money. Price the ones that are at what the market will bear — not at the lowest number you think someone will accept.

About the Guest

Michael Yasny is the founder of Money Consultants and the author of several books on business financing and entrepreneurship. He helps new businesses, growing businesses, and businesses in financial difficulty find the financing, structure, and strategy they need to survive and grow. He has spent decades in the field working with owners at every stage — from the first idea to the edge of insolvency — and brings a no-fluff, practical approach to every conversation. Connect with Michael on LinkedIn or find his books on Amazon.

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Partners on this episode

Canada Growth Network — A business community where SMBs and solopreneurs get real connections and access to GoHighLevel CRM for $47/month Canadian.
Profit10™ — Take the free Profit Snapshot and find out what's really holding your business back across ten key drivers.
Property Wizard Podcast — Practical real estate and wealth-building conversations with Fred Crouch.

FAQ

Q: Do I really need to incorporate before I start making money?
Yes. Incorporation separates you from the business legally. It limits your personal liability on anything the business does wrong — unless you sign a personal guarantee. The cost of setting it up is far less than what it costs to fix the problems that come from not having it. Ask your accountant on day one. If they say wait, find a new accountant.

Q: What's the difference between a business advisor and a business coach?
A business coach helps you with mindset, productivity, or one specific area. A business advisor understands the full financial picture — financing options, bankruptcy law, pricing strategy, supplier disputes, and how to structure deals. When you're starting or growing a business, you need the advisor. The coach comes later.

Q: How do I borrow from family and friends without damaging the relationship?
Ask for exactly what you need — not less. Set a clear repayment structure that gives you at least two years before principal repayment starts. Pay interest in the meantime. Don't drive a new car while the loan is outstanding. And don't pay it back in a lump sum the moment you have cash — keep it in the business, pay it down gradually, and communicate clearly the whole way through.