Starting up a book keeping business

[geek84]

Good Morning Folks

I hope you all had a nice weekend and rearing to go for another week ahead!!

I am in the process of starting up my bookkeeping business and busy do the marketing in order to attract clients.

I received an email from an accountant a few days ago stating that he is prepared to provide me with a list of brand new start up companies in my local area for a fixed price. Do you think that would be a good idea in order to get new clients or would it be money wasted and I would be better off doing my own marketing?

Any advice greatly appreciated.

 

[LancashireMan]

I recommend you stay clear, at least at the beginning, of start up companies. They are often short of cash, often lack clear direction. To get your start up going on firm footing, seek business from established companies.

 

[SBlundell]

.....however, building a relationship with a local accountant or two may be mutually beneficial for both of you, as there is likely to be a two-way referral stream in complimentary (non-competing) industries.

Just a thought . Best of luck with the new business.

 

[geek84]

Hi Folks

Thanks very much for your replies.

Any further advice would be greatly appreciated.

 

[ianm10]

If I remember correctly, Simon Dolan built his empire by providing a book beeping service to IT contractors. Maybe this is an angle you could take, as there are plenty out there? Also his book was quite a good read too...

 

[EstherG]

I agree with Lancashire Man, new businesses are exciting but they can drain your time by asking lots of questions.

You'd be better off looking for companies that are growing and need to outsource their bookkeeping.

Have you considered networking events local to you?

 

[Philip Hoyle]

I agree with the points about start-up companies. I subscribed for such a list many years ago when I was building up my practice - the success rate was very low - most start-ups already had an accountant on board (usually appointed before they started/bought the business, so once it was started, the moment had passed), or were far too small to need a book-keeper or accountant, or were new branches of existing businesses so likewise had their needs already covered. It wouldn't surprise me if they were just wanted to spread the cost of their subscription by selling them on to another also.

But, yes, a good relationship with local accountants is probably the best way to get some referral work, particularly smaller firms who may not have in house trainees or book-keepers to do it.

I'd also look into other avenues as I think that traditional book-keeping may be declining. The reason being that there are now numerous online accounting software packages that automatically import bank transactions daily from the online banking system, remember the transactions, so after it's set up and running, will virtually automatically post your bank transactions to the right nominal codes in your accounting system - taking away all the manual input and bank reconciliation etc., which was the traditional market territory for book-keepers. Add to that the trend towards immediate payment by credit card or BACS for sales and purchases instead of credit necessitating sales & purchase ledgers, and the traditional "data entry" role of the book-keeper is removed from many firms these days.

You could differentiate yourself by offering other services, such as setting up accounting systems with live bank feeds, put more emphasis on payroll, VAT returns and management accounts, etc., to work with the new breed of online systems rather than trying to hold back the tide of change by staying with the old model of data entry via Sage etc.

 

[warren cass]

Buying data can be hit or miss. Better to build key relationships with potential referrers such as;

• Bank Managers
• Accountants
• Business Coaches
• People running local networks
• Virtual Assistants (already helping clients with workload)

As stated above, startups can be high maintenance but established businesses probably already have processes in place.

Happy hunting and as always, feel free to come along to one of our events if you are in the neighbourhood.