3 Lead Tips on Launching an Accounting Firm
Accounting is definitely one of the leading favorable industries when it comes to launching a startup. The total revenue for the finance sector for 2017 was $15.1 billion and the growth trend continued throughout 2018. So you are definitely on the right track when it comes to choosing the industry in which you want to launch your company. Still, starting out is never easy, and here to help are some essential tips on how to successfully launch an accounting firm.
Start with a clear financing plan
For an accountant, this should be easy, right? Well, not necessarily, handling other people’s money differs from handling your own, and it is important that you handle your own finances the right way. The most important aspect is securing sufficient funding to stay afloat until you start earning enough. Like for most startups, the estimate is around one year, so you need to have finances that will keep your company running one year without earnings from customers. That is the safest way to ensure that you don’t end up failing as one out of ten startups sadly do. It is important to remember that acquiring several starting clients does not mean instant profitability, as you might not get paid right away, and you will also need to put those initial payments back into the company to keep it running.
Another important aspect when it comes to financing is deciding how you want to get paid. This can affect your overall ROI, and it can give you a clearer picture as to when you can expect payment from your customers, and in which form. Nowadays, if it seems like your clients are struggling to secure the funds to pay for your services you can suggest they consider fee financing for accountants thus offering your clients an opportunity to set up a structured payment agreement, providing them with more time and flexibility, while still ensuring that your bills get paid in the end..
Ensure that you have a good team backing you
When launching an accounting startup you need to hire a staff you can rely on, since even the smallest oversight can cost you, clients. Now, one of the biggest mistakes a lot of first time entrepreneurs make is that they overhire. According to VC blogger Fred Wilson: “Too many employees and you will slow things down, burn through too much cash, and increase management overhead for no real benefit. Too few and you will be resource constrained and unable to grow as fast as you’d like.”
So, it is definitely not an easy task. It is important to hire for potential and not just based on the past track record. You might be surprised how much more efficient new talent might be then someone with decades of experience. This is especially true now, with the technology advancing so fast.
Don’t overlook the marketing aspect
Marketing is essential for any new startup. You need to make your company seen and heard. And a lot of young entrepreneurs consider that marketing is not high on the list of priorities when it comes to investment, and that is where things start to go wrong. Marketing in the digital age is as important for an accounting startup as it is for a company being launched in any other industry. According to a report by Forrester, 68% of B2B customers prefer to research independently online, this means that the way your company is presented online is detrimental when it comes to attracting new clients. So investing in all aspects of digital marketing is a smart allocation of funds for a newly launched accounting company.
From a highly responsive website to interactive social media accounts and creative content. Getting your company noticed within your customer target groups will make a huge difference when it comes to future success. Of course, the quality of work is what will help you retain the customers.
So there you have it, three essential tips that will not only help you launch your accounting firm, but also provide you with the knowledge to steer it in the right direction.