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Monthly Archives: March 2017

Ideas of Accounting Business Start Up

There are two obvious ways to gain ownership of an accounting firm. You can start an accounting practice from scratch or you can buy an existing firm. A hybrid way could be to buy into an existing firm with the plan to later buy the entire firm. There are advantages to both ways of entering the ownership of an accounting business. Starting one from scratch does not take a great deal of start-up capital, but there is no built in revenue source like there would be if an existing firm were purchased. This can be critical if the start-up owner is not good at acquiring new clients. A person starting from scratch should have at least some part time clients to give them some base customers. After that, the work of gaining clients one at a time is a battle that must be won and it is never ending during the first years of operation. The start-up owner must also have some capital to live on or another source of income while their business is getting off the ground.

Buying an existing accounting practice is going to cost quite a bit more than starting a business from the ground up. An existing business has established customers and an immediate cash flow that will help to carry the business into the future. The problem for the potential new owner is the business will have a price tag that is based on the annual income. The larger the cash flow, the higher the price will be for the accounting practice. The first rule when thinking about going into business for yourself is to seriously consider buying an existing business. If the buyer has the money, the advantages far outweigh the negatives of such a purchase. The immediate cash flow is a positive that makes buying an existing business a much better bet for success than a new start-up business.

Finding an existing business for sale is rather easy as the Internet is filled with brokers who specialize in buying and selling businesses. Many of these brokers have listings on their website. Find a couple in your area and see what they have to offer.

Other Accounting Business Possibilities

If a person likes accounting, but does not want to go the full route of becoming a CPA then there are other accounting business possibilities. A bookkeeping service can be started part time and slowly grow into a full time business. Every business needs their books kept up to date. It does not matter what kind of business it is, there is the consistent need for current bookkeeping. The owner of the business may not have the time to do the books, may not know how to do the accounting or just wants to hire out this aspect of his business. This opens the door to many businesses and can also be an arrangement with a CPA firm. The CPA firm may contract out the month-to-month bookkeeping to another company. They may just recommend another company to do the grunge bookkeeping work that is needed to run the business. The opportunity here is the business client needs the day-to-day bookkeeping done and does not want to do it for themselves. This fact opens the door to a bookkeeping service.

An offshoot of the bookkeeping service is a payroll service, which can be a very good income source for the small bookkeeping service. Every business has to pay its employees in a timely manner and with few errors. This service is a commonly contracted out part of running many businesses.

A third accounting business is a tax preparing service, sales tax service and employee income tax reporting. The tax preparation is an easy business to grow, as almost every body is a possible client. This means you can have individuals and businesses as clients. The individuals may be only once a year or four times a year. There are far more of these possible clients than there are businesses. This is a natural tie in for a bookkeeping service as the business client will have to report income and possible tax owed each year or maybe even four times a year.

All three of these accounting type businesses can be started on a small scale and grown over time. It is also possible to find a bookkeeping service that is for sale and has a ready clientele. Again it is about money to buy or time to build the business. The cash flow for a one-person office or with a part time assistant can be substantial once a client list is developed or purchased. This area of the accounting business lends itself to a weekend part time start-up. The other plus factor is that with the computer and the software that is now available any one with a knack for numbers and can read can get into these businesses. You can also jump start the business by buying out a going service with a good paying client list.

The other aspect of these niche areas is they do not take the formal education and meeting of state licensing requirements. The CPA exam for instance can take several years to pass.

Conclusions

If you have the education and can pass the CPA exams, then starting a CPA firm or buying one is a way to make a good living in a much needed business. The bookkeeping and the tax rules get more complicated each year. Clients have to be advised on how to meet these requirements. They need someone to do the work and it must be done right. Since they are experts at their business, they do not have the time or energy to study this area of their business. Consequently they hire it out to a firm or bring in a bookkeeper to help. All of these requirements make for a natural and lucrative arrangement for the accounting firm.

The same can be said for the bookkeeping service and it may be easier to get into, as the requirements are not as strict. The owner along with good software can do a great deal of the work needed by clients. Since the rules and regulations get more complicated each year, this area of business will do nothing but continue to be in demand.

 

Entrepreneurial Mindset

The way you think can really determine whether you will become a successful entrepreneur or not. Through the years, experts have studied and observed how the entrepreneurial mindset works and this is what they were able to discover:

1. Successful entrepreneurs think that they can do it. Armed with a vision of what they want to achieve, entrepreneurs have absolute confidence in themselves that they will be able to succeed. They look at things in a different way. When other people think of the obstacles along the way, entrepreneurs think of them as challenges. A strong belief, coupled with positive thinking, is just one of the marks of a successful entrepreneur.

2. Successful entrepreneurs think that risk is all part of the process. Most people are afraid of risks because they do not want to find themselves outside of their safety zone. Successful entrepreneurs think otherwise. Sometimes you need to come out of the safety zone and take risks in order to succeed. But winning entrepreneurs have another trait going for them – they know how to take calculated risks.

3. Successful entrepreneurs not only “think”, they “do.” They know that in order to be successful, action is needed. Having well-intentioned goals is good, but focused action would get you there.

Having the entrepreneurial mindset will help a lot in making you succeed with your next business endeavor. Developing it takes some time. But the earlier you take the effort of doing so, the better your chances of succeeding as an entrepreneur.

 

Start a Floral Business

The lower cash outlay to become an owner of a floral business could be the one factor that makes a person go one way versus another. If a person is going to open a brand new shop, they will have to pay particular attention to the location of their new store. Drive-by traffic and walking traffic can make a big difference in how fast the business grows. This type of floral operation would be the typical florist’s shop that you can find in many shopping centers. There are other variations of this type of floral business that a knowledgeable person could start or buy from a current owner. You could get into the wholesale side of the business and supply retail shops. You could supply businesses with floral arrangements that they want delivered every week. Weekly deliveries that are done on a contracted basis could be in addition to the normal business of the shop.

Where to find floral businesses that are for sale

One of the first places to start the process of looking for a business is to contact companies that franchise floral shops. They will know of any for sale or how to start a new one. Another quick source is to use an Internet search engine and see what comes up under floral businesses for sale. Acquireo.com has a list of Florists for Sale. A third excellent way to discover businesses for sale is to contact business brokers to see what they have listed in their firm. All of these sources will probably bare fruit and will jump-start your search for a business you can buy. A study of what is being offered will help you see what kind of money is needed to buy an existing shop that has been successful for a few years. The business brokers will usually know if the current owner is willing to carry back some paper or not. Knowing the lay of the land will give the prospective buyer knowledge of what they will need to do to buy an existing business. Being forewarned and aware could help shape an offer in the best light. A seller that claims that they will not consider an offer that is not the full price may waffle when shown an offer that is close to what they want and will entail a short term payment period for the balance.

Local newspaper ads are sometimes good places to find an offer to sell by an owner. You might also check with wholesale florist. They may know of a shop where the owner wishes to retire so they are looking to sell. Digging out possible purchases is grunge work, but it could pay off in the end with a great purchase of a successful business. Looking and asking is what it is all about and the time spent this way will give you a feel for what the market seems to be asking for a business.

Negotiating the deal with the current owner is sometimes better left to the broker than a direct face-to-face with the owner. The professional business broker has done this before as part of getting a buyer and seller together. Their experience may be worthwhile when working out the final price for the sale. If terms are needed, it is better coming through them than in an immediate meeting. Giving every body time to think is all it takes to let a deal simmer and then come to completion.

If you have the money we can deal

The long time saying is “money talks”. When buying a business this is absolutely a fact. Hard cash deals are difficult for a motivated seller to turn down. The secret for the buyer is to make a trial offer and see what kind of counter offer comes back from the seller. If you have all the money in cash, this makes your offer very attractive if it is even close to the bottom dollar the seller will accept. If you will need some term to buy, the seller will ask for more money as a final price. Most sellers have two prices in mind, the cash price and a terms price. It may be to your benefit to arrange for another source of needed extra money over what you already have available. Possible sources for this money are a bank loan, a business lender loan or family and friends. A business lender makes loans all of the time to buyers of businesses and they are very well versed in this type of lending. Because of their special knowledge, they may be easier to deal with. You can find several such lenders by doing a search for business loans on the Internet. If your credit rating is strong and you have other assets, you may be able to get a loan from your local bank. Friends and family are a final choice after the first two have not panned out.

It is to your advantage to offer an all cash deal to any seller as this will usually save money and give the offer more creditability. Money talks very loudly when buying a business. Let the seller stew over your offer and make the decision to accept the offer or reject it. If the business has had few offers, then yours may look like a gift from heaven.

Conclusions

The floral business is a niche business in the world of small businesses. A shopping center shop can be a little gold mine due to the traffic that wanders by the business. Customers buy gift for others and they also buy for their own enjoyment. Fresh flowers smell good and look marvelous when professionally arranged. If is hard to walk into a shop, browse and not buy something. The return on investment can be very good when the business has a substantial clientele. This solid success will also raise the price of this existing business so you can expect to pay top dollar to purchase it. Remember though that you start getting your money back almost immediately as the cash flow will begin right away.

If you start a new shop in a center you can expect slow growth for a while until you develop a clientele. Your cost of doing this should be far less than if you have purchased a going business. The decision is yours to make depending on the funds you have available to own a business. This is a common choice that new owners have to make.