Sometimes the best business ideas are simply finding something that
people could do but don’t have the time, the education, or the
personality type to do well. That may be why bookkeepers are always in
demand.
Some people are organized—others are not. Surely, you know somebody
who is super smart but a quick look at their office reveals
organizational disaster. Maybe you’re the type of person that organizes for fun. The idea of a closet in shambles or a stack of
bills and bank statements that need addressed may be your idea of a
great time. If that’s true, you would probably love being a bookkeeper.
According to the Bureau of Labor Statistics,
the 2012 median salary for Bookkeepers was $35,170 per year--$16.91 per
hour. The industry is expected to add about 204,000 positions through
2022—an average rate of growth compared to other professions.
But these stats reference somebody who works directly for a single
company. According to Entrepreneur, independent bookkeepers make between
$25 and $40 per hour depending on where they work and the nature of the
job. As you become more established and gain more clients, you may
consider bringing in a partner or small staff. Some bookkeepers
establish larger companies with hundreds of clients but first, you have
to land enough clients to sustain yourself, personally.
Some formal training will help establish credibility but as long as
you have some formal experience managing the financial affairs of a
company or organization, you can start your business right away. Here’s
how to get started.
Step 1- Train
You don’t have to become a certified public account but in a world
where so many people advertise themselves as experts, it’s hard to stand
out from the crowd if you have no training. Community colleges offer
bookkeeping courses and some offer additional or specialized services
including tax preparation, loan packaging, and software training. The
popular account software, Quickbooks, offers certification programs, for example. You can also become a Certified Bookkeeper through the American Institute of Professional Bookkeepers.
Step 2- Home Office or Office Building?
If you’re just starting out, don’t quit your day job. An advantage to
this type of business is the ability to take on clients you can service
after hours. These clients will likely come from contacts you’ve made
in your current job. In time, your increasing client mode will force you
to make the decision: Is it time to quit your job and devote all of
your time to bookkeeping or keep your business part time?
New independent bookkeepers often work from home. They may meet
clients in their home office or at a local coffee shop but some advise
to rent a small office as soon as possible.
Because clients trust you with their money, having an
ultra-professional working environment may be important to some of your
clients. And don’t forget privacy. If you have children or other people
living with you, clients may see your home as an insecure environment.
Finally, having meetings at your home might make your clients feel
uncomfortable.
Look for a company that offers office space for rent as needed
instead of a traditional lease. Larger cities tend to have places like
this. Ask friends who are business owners if they have extra space for
rent, and if that fails, look at traditional office space. Single office
rentals aren’t as outlandish as you might think.
Step 3- Establish the Business
Laws in your state may require that you establish a formalized
business structure. A limited liability company, or LLC, is the most
common type of business structure for small businesses. In most states
it’s easy to set up and costs less than $100. Go to your state’s
Secretary of State website to learn how. There are also business
registration services that can help.
Because of the nature of the business, consider insurance. Errors and
omissions insurance is a common type of insurance held by bookkeepers
but general liability is another option. E&O insurance is cheap—some
policies are around $25 per month.
Step 4- Pound the Pavement
At the beginning, clients aren’t going to find you; you have to find
them. Prepare some basic marketing materials. If you have an eye for
design, you may be able to create these materials yourself. If not,
there are plenty of templates for sale and freelance designers that can
help for a reasonable price.
Ask others in the industry what clients find to be important. Look at
marketing copy from bookkeeping firms and observe what they stress.
They’ve already done the research for you based on their experience in
the business. If they stress something, so should you.
Also create a basic website. Unless your business model will exist
mostly online, keep your site simple and professional. Only include the
important information. No fluff.
After that, do some old-fashioned marketing. Work your contact list,
go door to door reaching out to small businesses and individuals, and
attend community events. Start with people who know you from your
current job and branch out. Once you become more established, clients
will find you through word of mouth but plan to always market.
Step 5- Go Overboard with Great Service
Any business that survives beyond the startup phase knows this
instinctively. Going over the top with customer service, is what makes
you stand out. Are you available after hours? Do you have a network of
trusted professionals you can refer clients to when they need something
outside of your expertise? Are you fast an error free? Did you remember
to acknowledge their birthday or their child’s high school graduation?
Great service isn’t a strategy; it’s thoughtfulness—taking an interest
in your clients as individuals will make you a stand out. Customers in
all businesses complain of the lack of a personal, human touch in
business. This is an easy way to stand out.
Bottom Line
If you love numbers, organization, and some financial grunt work,
bookkeeping is the perfect business for you. Don’t quit your day job.
Start small, care about your clients, do a fantastic job, and soon
enough, you’ll be your own boss if that is your goal.
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