Are You Ready to Start Your Own Accounting and Tax Practice?
Starting your own accounting and tax practice can be terrifying and exciting at the same time.
There are lots of pluses in working for yourself: you can work when you want to, uncap your salary, and wake up every morning to a job you love.
But you aren’t being realistic if you don’t also consider the negatives: you bear all the responsibility and risk, you face potentially long hours, and no there’s guaranteed salary. Those last few thoughts could be enough to paralyze anyone from taking the plunge. But you can be realistic about starting your own accounting and tax practice while preparing for potential glitches and obstacles. Here are nine questions to help determine whether or not you’re truly ready to start your own business.
1.Are you self-motivated?
If you start your own tax practice, you’ll be your own boss, and if you need a boss to tell you what to do and when to do it, then you probably should continue to be someone else’s employee. But if you’re self-motivated, proactive, and dynamic, you’ll be able to manage your practice rather than have the practice manage you.
2. Are you passionate about accounting and tax preparation?
If you answer “no” to this question, than go back to the drawing board. You should be passionate about your business, otherwise you’ll dread the work you do, regardless of how skilled you are. But if you are passionate about accounting and tax preparation, it will exude from you, drawing more clients who trust your enthusiasm and confidence.
3. What are your strengths and weaknesses?
List them if you have to. What are you good at and what holds you back? Once you know your strengths you can capitalize on them. Once you know your weaknesses you can either work to overcome them, or enlist the help of others. Maybe you just need a little training to give you more skill and knowledge.
4. It is financially feasible for you to quit your job to start your own business?
This is where you ask yourself if you should continue to grow your practice in your spare time, or if you have enough clients to quit your full-time job and support yourself. Maybe you’re ready to quit regardless, but do so with a well-padded savings account that can fill in the gaps until your income can sustain you.
5. What are your business goals?
You should articulate your objectives. Defining your goals will help you determine the steps necessary to accomplish them. It will also help you assess your success and continue to progress, setting new goals once you’ve achieved your original goals.
6. Do you have a marketing plan?
If you’re not sure how to market your practice, you need to develop a plan before you open your doors to business. Don’t expect your three good clients to carry you into retirement. A successful business person is good at maintaining relationships with current clients while doing what’s necessary to get new ones. That’s how you grow a business that will be satisfying and financially rewarding.
7. Who would your competition be and what would you offer that they don’t?
You should do a little market research to see if the area can sustain another accounting and tax practice. What are they currently doing that you could improve on? This could also be where you get some ideas on marketing. How are they drawing clients and how could you improve on those methods?
8. Will your family support your decision?
This is not the type of decision you casually break to your spouse. “Honey, guess what I did today?” In order to succeed, you’ll need your family’s support. Be sure to discuss all the pros and cons together before making any decisions, because in a crunch you just might need to enlist their help in order to succeed.
9. Will you be happy working for yourself?
Ask yourself if you’re truly interested in being a financial service provider. Will you enjoy managing the business-end of your practice? Is this something you will enjoy doing everyday? If you’re unhappy having your own practice, then nothing else will compensate for your dissatisfaction. But, on the other hand, if it’s something that will challenge and excite you, then pursue it with gusto.
Asking yourself the right questions can determine whether or not you’re ready to start your own tax practice. And just because you don’t have the right answers now doesn’t mean you can’t open your practice later. It just means that you have a bit more to do in order to prepare for success.
Universal Accounting Center Can Help You Finance Your Small Business
There are ways you can finance your new business venture, relieving some of the financial stress associated with starting your own business. Universal has a manual and CD called Financing a Small Business. It contains everything you need to know about funding your new venture, for one low price! Don’t wait to prepare for entrepreneurial success. Order now!
