May-June-issue

BUSINESS AND PRACTICE DEVELOPMENT
basic accounting and tax filing services.
However, your own expertise and past
experience in accounting may lead you to
establish a different type of business.
•If you have consulting experience, for
example, you could establish an accounting
consultancy firm. Your business could
offer clients solutions for streamlining
their accounting process and tightening
their internal controls. This might
include software training and staffing
recommendations.
•Entering a specific area of accounting
can define your firm’s core competencies
and set you out from your competitors.
However, trying to enter too narrow a
niche may keep you from getting enough
clients to get off the ground. In the early
years of your accounting practice, try to
remain open to any opportunities for new
clients.
Business plan
The business plan is a formalized
document that covers all the mechanics of
your business, as well as defining its vision,
mission, and core values. The business plan
is crucial when trying to obtain financing
from lenders, and it can also help you
make sure you’ve planned everything well.
•Defining your firm’s vision, mission and
values will be key to carving out your
practice’s niche and giving it direction.
A vision represents your broadest view
of your firm’s place in the world, while
a mission represents the more concrete
method you will use to realize that vision.
•Structuring your business is another
important part of a business plan. Limited
liability companies and partnerships
are very popular structures for small
accounting firms. Companies and
Partnerships are ideal if you plan to
expand your business widely, and sole
proprietorships work well in accounting
because insurance considerations are
generally low.
•A business plan should also cover major
areas such as marketing strategy and
projected costs and revenues. Overall,
the plan should demonstrate that you
understand your target market and have
plans in place to manage the administrative
and financial aspects of your accounting
firm.
Market Entry
Taking the plunge of starting a business
can be approached in several ways. Starting
from scratch is an attractive option, but
picking up part-time clients, partnering
with an established practitioner or buying
an existing firm are also options.
•Starting an accounting practice from
scratch gives you the most control. You
won’t have to deal with existing baggage
like debts, poor employee culture and
prior services issues. However, this option
makes it most difficult to attract start-up
capital and to market your business to
those first few clients.
•Starting a part-time accounting practice
is a good way to hedge your bets. Working
with clients on the side of your full-time
ICPAK requires
any member who
is in audit and
accountancy
practice to hold
a practicing
certificate, even if
one is a member
of the institute in
good standing.
ICPAK’s definition
of public practice
work extends
beyond auditing,
to incorporate
all types of
work generally
associated with
assurance and
accountancy
services offered to
the public.
job allows you to test the waters of starting
a practice without the huge financial risk.
Establishing relationships with these
clients will also smooth the transition into
running your practice full-time.
•Partnering with an established accounting
professional can help you get a business off
the ground. Working with a partner means
more industry connections, more capital,
and more potential client relationships.
•Buying an existing CPA firm will keep
you from having to deal with many startup
issues, but it reduces your level of
control and can cost a fortune up front. In
addition, it takes time to shop around for
firms that are selling.
Market your practice
After you have consulted your business plan
and decided on an entry strategy, a business
structure, and a marketing strategy, you are
ready to begin your practice. Incorporating
your practice, buying supplies, and
renting out office space are relatively
straightforward tasks. You will also need
business cards, a website and a memorable
logo. Attracting your initial clients often
proves to be the most challenging aspect of
starting your accounting business.
•Rely on past connections to help attract
clients. If you have established enduring
relationships with clients at a previous
employer, you may be able to attract those
clients to your new business.
•Marketing is largely about establishing
a presence and an image. It has become
increasingly crucial to maintain a website
for your firm; because this is often the first
thing potential clients will search for. In
addition, list your business with the local
phone book and consider taking out print
and television ads.
When the going gets tough
When people start to work for themselves
they are keen not to turn any work down
but this in itself can be problematic. If you
over commit your time and fail to meet
deadlines, you may lose clients.
Difficulties with clients and money
will give you sleepless nights. Money
is everything when you start your own
business. The profit margins are tight and
you will have good months and bad, but
never give up keep going forward at all
times because that’s the only thing that
will keep you afloat when the going gets
tough.
kipkoechvictor@gmail.com
12 MAY - JUNE 2018