An accountant friend of mine was recently hired to clean up the books for a bookkeeper who does mostly tax work. This person rented a store front on a busy street and hung up a sign saying "Bookkeeping and Tax Services" or something like that.
According to my accountant friend, this person is a horrible bookkeeper who doesn't kow much about taxes. And yet the client list includes half the businesses in the area.
The moral of this story? Having a store front location may be much more valuable than I would have thought. I'm thinking that if I decide to set up my own practice, I might start by renting a store front.
Mines first floor offices in a huge Victorian building just off the high street but has a lot of passing traffic.
I actually had a similar conversation the other way around in that an accountant freind of mine who worked from her home. Our conversation went along the lines of.
"If I were a client and there were two accountancy practices would I choose the one with the substanc e of premises or the one working out of a back room in the house".
She subsequently moved into offices and has gone from strength to strength.
It's not just the being noticed, it's also people taking you seriously.
I think that we all know that even if Bill worked out of a cardboard box he would still be one of the best bookkeepers to go to. But to Joe bloggs looking at their options having premises is another thing that sways them. I would say a lot more than qualifications which to many clients mean little or nothing but the fact that you have offices makes a statement.
The things that will make you business a success are networking, word of mouth from satisfied clients and the presence of your business. I feel that most other things such as websites and leaflets are peripheral to that core.
As touched upon by your accountant, the bookkeeping business did not survive because of a lack of knoweldge of the bookkeeper. However, can you take that statement at face value?
I've had issues myself with an accountant spreading word that "Oh, he's just a bookkeeper!". (This coming from an accountant whose got the experience but has not passed an accountancy exam in their life!!!!).
You will get to see the nastier side of business where other practices belittle yours without good reason in an attempt to protect their own income. Personally I'm above such tactics but it does annoy when others employ them.
Will you be going for an actual shop front or a street facing first floor offices with a clearly seen sign which is the common approach in our business? Why you say. Well, business rates on shop fronts can be crippling even where the rent itself is quite reasonable. First floor offices pay far lower rates and generally lower rent as well so you get the benefits of a town centre presence at reduced cost.
Talk later,
Shaun.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Theres actually quite a lot of (smaller?) firms buying and using houses as office space in my area, in fact one (software firm) i spoke to Shaun about seems to be doing this and i initially thought they were business park types. (until i google mapped)
*I dont know the size of these companies.
-- Edited by Spamkebab on Saturday 29th of October 2011 06:13:09 AM
-- Edited by Spamkebab on Saturday 29th of October 2011 06:15:30 AM
Shamus wrote:I've had issues myself with an accountant spreading word that "Oh, he's just a bookkeeper!".
Agreed, although I don't think that's what's happening in this particular case.
First floor offices pay far lower rates and generally lower rent...
We have a lot of shared office spaces where many small businesses are in one building and share facilities (reception, board room, IT network, etc.). I was thinking a good second choice might be to set up shop in one of those, and then network with the surrounding entrepreneurs.
I hadn't thought of renting a first floor office in a retail space. That wouldn't provide the same signage as a store front, but it would be more inviting to drop-in traffic than an anonymous glass cube.
Agreed, although I don't think that's what's happening in this particular case.
Morning Timothy,
What's your take on what's happening in this case?
Hope that the suggestion of first floor offices helps.
When you've been doing this for a while you will see the business owners out shopping with their families, they're the one's walking around looking what's above the shops rather than what's in them!
If you do go down that path make sure that you have the right to advertise on your window or on the outside wall of the premises otherwise the object of the excercise is partially defeated. (although you still have the presence and ease of access).
kind regards,
Shaun.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
......... I think that we all know that even if Bill worked out of a cardboard box he would still be one of the best bookkeepers to go to. ........
Kind words Shaun, and I didn't realise that Google Earth was accurate enough for you to see my office
My weakest point is marketing (I suspect I am not alone), and quite simply I do not network enough.
I have considered a dedicated office but I have the chicken and egg conundrum, of not enough clients to support paying rent, rates, services etc. and not enough presence to aquire more clients easily. Also, in this region the nearest main population centres are 20 miles away (although Tintagel has town status, it really is no bigger than a village anywhere else in the country), and part of the reason for being self employed was to avoid the long commute to work.
Shamus wrote:What's your take on what's happening in this case?
Rather than speaking ill of his client, my accountant friend is very impressed by the boldness and entreprenurialism. He's smacking himself in the head and wondering why he didn't rent a store front when he decided to freelance.
It looks like he's dealing with someone who decided to become a bookkeeper without getting much training or experience first. However, that person is clever enough to hire an accountant with good bookkeeping and tax preparation skills.
Sometimes nerve, initiative and salesmanship are the the most important things when starting a business. It's relatively easy to hire the skill. I see plenty of builders who know almost nothing about building. They close the deals and hire other people to deliver the skills. If they last long enough, eventually they become what they pretend to be - good builders.
