The ever-evolving business world poses a maze of challenges, yet one man’s journey demonstrates the power of perseverance and the transformative potential of numbers. Rudy Schmid, the author of “The Entrepreneur’s Guide,” has forged a remarkable career that spans over six decades, steering the complexities of the financial industry and leaving an indelible mark on the lives of aspiring entrepreneurs.
From his humble beginnings as a struggling math student to becoming a renowned certified public accountant (CPA), Rudy Schmid’s story combines determination, insight, and a passion for unlocking the secrets hidden within numbers.
Early Foundations and Academic Pursuits
Born into a family where mathematics was not a natural forte, Rudy Schmid’s journey began with a struggle to grasp the details of numbers. However, his innate curiosity and fascination with financial matters pushed him to work harder, eventually leading him to a profound understanding of the numerical world.
After serving in the Army, Rudy continued his academic pursuits at UCLA, earning a business administration degree in 1958. This academic foundation laid the groundwork for his future endeavors, equipping him with the tools to interpret and analyze financial data in a manner that would set him apart from his peers.
Venturing into Auditing and Discovering Business Insights
Rudy’s professional journey began with a position at Ernst & Ernst, CPA (now Ernst & Young), where he discovered a passion for auditing and uncovering the inner workings of diverse industries. Rudy gained invaluable insights into business operations through his interactions with business owners, managers, and professionals from various sectors, such as publishing, construction, retail sales, and weather control.
One of his favorite tasks during audits was writing closing reports highlighting businesses’ strengths and weaknesses based on a meticulous analysis of financial statements and the development of key ratios. This process allowed him to provide constructive feedback to management, furthering his understanding of how numbers could be leveraged to drive strategic decision-making.
The Entrepreneurial Leap and Establishing a Thriving Practice:
After three years of honing his skills at Ernst & Ernst, Rudy recognized his true calling – to become an entrepreneur and take control of his professional destiny. On January 2nd, 1960, he established his accounting firm, Rudolf F. Schmid, CPA, in Santa Maria, California. This bold move marked the beginning of a remarkable six-decade-long journey as a CPA, during which he served clients across a wide spectrum of industries, providing accounting, income tax services, and invaluable consulting.
By 1968, Rudy had built a thriving clientele, and he seized the opportunity to sell his accounting practice over a fateful lunch meeting with another local CPA firm. This sale allowed him to go on a new chapter, relocating to Santa Barbara and investigating the world of limited partnership investments, which were gaining popularity then.
Tech Ventures, Teaching, and Unique Cases:
Rudy’s career took an unexpected turn when he was offered the opportunity to become the president of a new software company in Santa Barbara during the dawn of the personal computer era. Accepting the challenge, he embarked on a project to develop data for the airline industry, aiming to computerize manual processes and reduce time and labor costs by up to 80%. While the project was successful, the company faced intense competition from a rival firm with a much larger marketing budget, leading to the venture’s eventual demise. However, this experience taught Rudy invaluable lessons that would serve him well in the years to come.
In addition to his entrepreneurial ventures, Rudy also served as a lecturer in accounting at the University of California, Santa Barbara, honing his teaching skills and passing on his knowledge to the next generation of financial professionals.
Rudy fondly recalls unique side assignments among his regular accounting responsibilities, such as investigating missing funds at a motel in Kansas City. Through his meticulous analysis of guest records and cash receipts by shift, he swiftly identified the culprit – a night clerk who confessed and returned the stolen funds within a single day, demonstrating the power of numerical analysis in solving complex problems.
The Birth of “The Entrepreneur’s Guide”
In 1985, Rudy accepted an offer to serve as the controller of a multi-company organization in Baltimore, Maryland. This role encompassed operations in cattle raising, dairy farming, and grain farming. Eventually, it expanded to include accounting and reporting for numerous real estate development communities, including a prominent $250 million residential community.
Rudy’s responsibilities extended to continuous planning, forecasting, and reporting on income tax aspects for all seven companies within the conglomerate. His ability to convey complex financial information in a meaningful and accessible manner became a hallmark of his work, ultimately inspiring him to share his insights through the written word.
During his tenure as a controller, Rudy realized the exceptional value of his ability to communicate financial data in a way that influenced the plans and decisions of directors and shareholders. This realization ultimately led to the birth of his book, “The Entrepreneur’s Guide,” which aimed to distill his insights and experiences into a valuable resource for aspiring entrepreneurs.
A Remarkable Career and Family Life
Rudy’s illustrious career as a CPA spanned an incredible 64 years, during which he provided his services to clients across a wide array of businesses. Throughout his journey, he discovered that accounting was far more than just “bean counting” – it was a pathway to meeting extraordinary people and impacting their lives.
At the remarkable age of 91, Rudy reflects on his remarkable career with a sense of fulfillment and gratitude. He has built a loving family with seven children, thirteen grandchildren, and eight great-grandchildren, all of whom have been a constant source of joy and inspiration.
The Bottom Line
Rudy Schmid’s story shows the power of numbers and the resilience of the entrepreneurial spirit. From his humble beginnings to his remarkable career as a CPA, Rudy has demonstrated that with determination, passion, and a deep understanding of financial data, it is possible to steer the complexities of the business world and leave an indelible mark on the lives of others.
Through his experiences, Rudy has discovered that accounting is not just a profession but a lens through which one can gain insights into the inner workings of businesses and the lives of the people who drive them. His journey inspires aspiring entrepreneurs and financial professionals, reminding us that success is not defined by numbers alone but by the ability to leverage them in a way that fosters understanding, promotes growth, and creates lasting value.
