I have a financial services background but am just doing my bookkeeping qualification with the intention of becoming a self employed bookkeeper. I have three main questions if anyone can help :
1. What is the scope for a bookkeeping business? I prefer the idea of developing it to the point where if I become busy enough I can either employ or subcontract work but I'm not sure if the fixed fees and hourly rates carry enough margin to make this a feasible working model. For example myself and 3 employees based in an an office premisis. If anyone currently has this working model or feels they could give me some guidance please get in touch.
2. I like the idea of working with someone perhaps as a partnership. Does anyone know the best way to find like minded people in my area. This is Derbyshire by the way.
3. I ran a similar business previously where all work was completed either by telephone, post or online. Apart from occasional visits to client is this a business model that could work withing a bookkeeping business?
Sorry for all the question but if anyone can give me guidance on these that would be great.
Hi David, I'd say one of the advantages of an office is the 'shop window' way of attracting new businness. There remains a significant market who prefer to drop off an orange box full of receipts and bank statements rather than sending a bookkeeping file online. As for the finished product, I believe people still want something tangible in a folder, even though they'll rarely read it.
Personally I like the idea of a partnership, I'm thinking on the same grounds as I'm struggling to find clients and have had to take on some temp work, I'm now considering studying for the AAT/ATT to offer more services than just basic bookkeeping. After talking to many people with small businesses they all seem to drop everything off with the accountant making it very difficult to find basic bookkeeping work, unless it's just in my area
I do think a shop front/office has a lot of advantages compared to working from home on your own and maybe gives a more professional image.
I started out with the intention of working from home due to having small children. It hasn't quite panned out this way though. I spend 3 days a week at clients offices and work from home for the rest, which suits me better. I don't have an office as I think that to rent one would just be throwing my money away. Especially as the ones that I saw were dire. I collect a box of paperwork, put it onto Sage and then submit reports either to the client themselves, or to their accountant.
I have no idea where you would look for people to join you in a partnership though, peopleperhour maybe? I personally don't think there is enough margin in it to be able to outsource the work, unless you hire an apprentice and pay them the minimum which I believe is £2.50 per hour for now, although you can only pay them this for a limited amount of time.
There is scope for business though. I'm 9 months in, have 10 customers (4 weekly, 6 monthly) and have had to stop taking on anyone new for now.
Congratulations on your 10 customers, I'm in Leicestershire and I am really struggling to find clients, if I may ask how did you go about looking for clients and what services are you offering?? I have sent out 100 letters and trying word of mouth but still nothing. Has the AAT helped??
I was really fortunate in that when I left employment I was asked to continue doing the books for the smaller company that my employer owned. The manager of the smaller company tells everyone she meets about me and put my leaflets in her statement run. I got my largest client through this. Another one that I picked up through this was one of her suppliers that was also one of my customers when I worked for the larger company so he knew my telephone manner before he asked me to go to see him.
One I found on facebook, one I met when I was working in a pub before it took off, one is a parent at school (I wear a branded fleece to and from most days), one is my husband, one my husbands auntie, one is a supplier of my husbands and the other one I responded to an ad on the job centre website.
I offer bookkeeping and payroll. I use Sage and this is on my website as well as on my leaflets. If I didn't have it, I wouldn't have many of my customers. I don't advertise that I'm AAT qualified as I'm not governed by them and am still a student.
I did a leaflet drop which aside from the ones my first client sent out, brought me nothing in. I went to a BNI meeting that I personally thought was a waste of time. I also got caught by an advertising scam so as a result don't do any at all.
Have you registered with peopleperhour? I've had nothing from there, but my husbands auntie swears by it. Also, have a look on the job centre website. The recruiter might not be adverse to having a self employed person rather than an employee. You never know.
100 is a drop in the ocean, it needs to be more like 1,000. You get a better response if you follow up with a phone call. Your letter should not be all about you, but should highlight what's in it for the business. You also need to keep at it. I signed a client yesterday that, it turns out, I'd been mailing since 2006. It's being in the right place at the right time, it just so happened with this client that they decided to move in 2011. I'd sent them 9 letters!
Yes I guess 100 is a very small amount but I was lucky to get 2 clients from the letters, not enough though unfortunately, my concern is that only offering general bookkeeping just isn't enough and that I will have to get more qualifications to offer a full service i.e payroll and my AAT level 3/4 which I have just enrolled on. My letters highlighted what services I offered but I like you advice on highlighting whats in it for them.
9 letters I guess persistance does pay off well done!!
Thank you for your advice, I have had a look on the peopleperhour site and have been looking on here for many months, unfortunately there is never anything on it for the Leicestershire area, think its time to move
I advertised my last business with yellow pages and after spending hundreds of pounds have decided not to do that again and I did leaflet drops for my last business and like you got nothing.
I am currently under an agency on a temp job and have stayed self employed but my contract ends on the 21st so getting a bit desperate, so I've applied for 8 more jobs and all asking for AAT trained or training so hopefully thats going to help, atleast until I can build up a client base.
Many thanks and good luck.
Lisa
-- Edited by Lisa68 on Friday 2nd of September 2011 09:59:14 AM
I am just starting out my own accounts, bookkeeping and tax business having worked in practice for 15 years. Now that i work in industry there isnt any bar from me doing my own work (whereas before my contract of employment stopped me in the past).
I am going to start doing the evening bookkeeping and SAGE courses at the local business enterprise company. I used to audit the company and luckily they are looking for someone to do the bookkeeping and SAGE courses as one of the tutors has left the company and the other is retiring. As well as getting paid to take the course hope to pick up some clients as they tend to be new sole trader and ltd company start ups. (so will be needing an accountant at some point).
In the process of getting my website set up which hope to have complete for the end of the month. Once i have done that going to get some flyers printed to advertise myself and put them up in local takeaways, post offices, and places where self employed people are likely to be eg taxi firms and building firms. Might also do a leaflet drop round the various industrial estates and put an advert in the local free magazine that goes to about 15k households (worth an £80 advert i think).
I have already got 3 clients who i got from advertising on gumtree. (free of charge)
Also offer a referral service where if a client directly refers me a new client they will get 20% of the new clients first fee as retainer fee (hope that will enable me to build up a portfolio quickly).
As well as working as group accountant now for a £14m turnover company i am going to start building up my own portfolio, take the bookkeeping and SAGE evening courses (probably 2 nights a month over all the courses), do some work for my old employers doing management accountsf or a timeshare business that being doing for the last 3 years (one weekend a month) and might also do some subcontracting work for another accountant i know. Am i taking too much on???? lol (also got a taxi licence which i use if there is nothing good on the telly on a sat night).
Ideally would like to build up a portfolio of 50-200 clients charging them between £250-whatever.
There certainly is scope. I'd suggest that you start off working from home initially to keep your costs as low as possible while you build up your client base. So long as you're both bringing in the clients and working equally as hard as each other I think a partnership is a good idea (with the right partner!). Good luck.
I am just starting out my own accounts, bookkeeping and tax business having worked in practice for 15 years. Now that i work in industry there isnt any bar from me doing my own work (whereas before my contract of employment stopped me in the past).
I am going to start doing the evening bookkeeping and SAGE courses at the local business enterprise company. I used to audit the company and luckily they are looking for someone to do the bookkeeping and SAGE courses as one of the tutors has left the company and the other is retiring. As well as getting paid to take the course hope to pick up some clients as they tend to be new sole trader and ltd company start ups. (so will be needing an accountant at some point).
In the process of getting my website set up which hope to have complete for the end of the month. Once i have done that going to get some flyers printed to advertise myself and put them up in local takeaways, post offices, and places where self employed people are likely to be eg taxi firms and building firms. Might also do a leaflet drop round the various industrial estates and put an advert in the local free magazine that goes to about 15k households (worth an £80 advert i think).
I have already got 3 clients who i got from advertising on gumtree. (free of charge)
Also offer a referral service where if a client directly refers me a new client they will get 20% of the new clients first fee as retainer fee (hope that will enable me to build up a portfolio quickly).
As well as working as group accountant now for a £14m turnover company i am going to start building up my own portfolio, take the bookkeeping and SAGE evening courses (probably 2 nights a month over all the courses), do some work for my old employers doing management accountsf or a timeshare business that being doing for the last 3 years (one weekend a month) and might also do some subcontracting work for another accountant i know. Am i taking too much on???? lol (also got a taxi licence which i use if there is nothing good on the telly on a sat night).
Ideally would like to build up a portfolio of 50-200 clients charging them between £250-whatever.
Funnily enough; I'm just starting out too, on less than a shoe string budget to be honest - I've been attending all of the free talks and meetings for new businesses in my area. Business Link, HMRC, etc. It's amazing how interested these guys are when they find out I'm a bookkeeper (and how many times you have to explain that doesn't mean accountant).
As for taking people on, look up agile working. My plans are similar to your own, just minus the expense of a central office (and the fun of a taxi license)...
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my blog "the bookkeeper's in town - learning the hard way"
well done!!
