Forums: Discussions for entrepreneurs and small business.

Wow, you`re doing everything right.  Much more than I am doing, so what`s wrong with this picture?

Your first client will likely be a new business who hasn`t set up their bookeeping yet.  But don`t stop branding your service to businesses already engaged with an accountant.  But be patient. 
As far as "where are you"?, they aren`t asking if yours is a home office.  They want to know if you are convenient to their location.  I tell people that I have a studio near my home.  I don`t say *how near*.  What is important to them is that you can do the accounting tasks so they don`t have to worry about it.  If you plan to conduct business at their location, then emphasize that aspect. 



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Steve Mann
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MannMade Digital Video
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I would argue that your sense of people "physically withdrawing" when you say you`re in a home office may be your own projection. In today`s world, the at-home worker is so common as to be a non issue. Telecommuting, global conferencing, international workgroups and so forth all are common place.

For accounting in particular, there`s no point at all in having an office. It would only be a drop-off point. Instead, you should examine your own psychology to see if you feel that somehow working from a home office in your own estimation is "less than" professional. :-)

If it is, then you`re unconsciously sabotaging your own business.
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To address your main concern; I`ve been in exactly that situation. Things were fine, then suddenly a whole lot of bad things, including medical, all came to happen at once.

Looking back (If I`d known then, etc...) what I see is a couple of critical things. The first is denial: "Well, this is only temporary. Something is going to happen soon and I`ll have the money to get this back on track."

That was five years ago, and nothing happened.

The second was "cut and run." Professionals understand very well when it`s time to cut losses and stop a losing proposition. I didn`t. The result was that I was spending close to $3,000/month to cover personal debt and another $1,000 to try and hold the line on medical expenses.

When I think of what I could have done with that $4,000 I just cringe.

Declare bankruptcy, try to reduce your housing costs, look closely at your transportation costs. Estimate what you need to live on if nothing in your current circumstances change, then adjust your life to those costs.

Yes it`ll hurt....a lot! But think of what you can live on if you stop all consumer debt payments immediately. That`ll extend your survival stockpile and give you time to build the accounting business. In almost all cases, a new business will need at least a year to get up and running, and a second year to even start to break even.

Wlkers
Hi! I know exactly where you are at because my story is almost the same. I had a successful accounting and tax practice, I sold it, and now I am starting up again.

What I have found is that people are very wary of who they will trust with their financial information. And once they have found someone they are very reluctant to change. I even had a potential client tell me, "yes I know my tax preparer is no good and is making mistakes and costing me money, but I still don`t want to change."

And although I usually agree with Craig, on the home office point I will have to disagree. An accounting practice is different.  Your clients are putting a huge amount of trust in you. By having a professinal office you make them feel better.  When I moved out of my house and into an office my client load more than doubled the first year!  Even my existing clients seemed to take me more seriously!

Now to get those first clients, sometimes you need to give a little to get a little. It sounds like you are already doing a lot of what needs to be done, and I am sure you will have your first clients soon, but until then, find a small non-profit group that you can support and offer your services to them for free. Just make sure they will let you use them as a reference. Chances are very good they will think you are the best thing since sliced bread and tell everyone about how wonderful you are.

And finallly, always act "as if".  This means that even if you don`t have one client you act as if you are a thriving successful accounting practice. This means you don`t ever tell anyone you are "just" getting started, or you are "just" a small business. Act with confidence and your potential customers will have confidence in you.

Good Luck and let me know how you do! I am lookign forward to a profitable tax season!

I`ll defer to CFOtoGo, because I`m not an accountant. I`ve had a lot of dealings with people in home offices and never thought it mattered much. But those are some pretty compelling numbers, to double the new business by having a standalone office.

Maybe a combination of cutting lifestyle expenses, declaring bankruptcy, then taking the savings to get the office?

All this sounds like really good news! What impresses me the most is that you`re encountering an obstacle, stating the problem, gathering advice, then making a decision. So many people don`t do the process, they just go `round and `round on stating the problem.

I`ll bet that after your first client, you`ll get a bunch more and all this startup anxiety will become a "funny story" you talk about in years to come around the holiday dinner tables. :-)