You have probably heard the daunting news before: roughly 50% of new businesses fail within the first five years of operation. If you’ve ever considered launching your own practice, that statistic has probably given you pause. However, there are tangible things you can do to avoid the most common mistakes made by entrepreneurs.
In a recent Entrepreneur.com article, author Martin Zwilling lists the “10 Top Reasons Why First-Time Entrepreneurs Fail.” We share five of those reasons here:
1. No written plan. You’ve heard the old maxim, “if you fail to plan, you plan to fail.” Perhaps you’ve spent hours dreaming about your business, imagining your achievements, and talking with friends and family about your goals, but without a business plan, you aren’t giving yourself the opportunity to truly plan all the necessary details and build a foundation for your success.
2. Limited business opportunities. Some entrepreneurs fail to perform the necessary market research that will help them determine whether or not the products and/or services they’ve selected are actually in demand. Thankfully, whether it’s tax preparation or small-business accounting, financial services are not only in demand but generally required by law.
3. Too much competition. Again, this problem could easily be overcome with little market research. Before launching your business you must determine who your competition is and what makes them appealing. Is there something you could offer that they don’t? Only by studying your competition will you develop that necessary advantage.
4. Not enough marketing. We get it! Promoting services doesn’t come naturally to accountants and tax preparers. But the truth remains: regardless of how skilled you are, your business won’t generate revenue without clients, and you won’t secure clients without a marketing plan.
5. Can’t execute. As Zwilling explains, “When young entrepreneurs come to me with that ‘million dollar idea,’ I have to tell them that an idea alone is really worth nothing. It’s all about the execution. If you’re uncomfortable making hard decisions and taking risks, you won’t do well in this role.”
Above all, you must have the necessary skills and know-how to ensure your practice succeeds. If you’d like to launch your own startup, we’d ask you to consider acquiring additional skills that will attract more clients and enable you to secure that competitive advantage.
Small Business Accounting
Small business accounting is a valuable niche market. In fact, over 90% of accounting opportunities can be found in the small business arena. Universal Accounting Center (UAC) has been training professionals like you in small business accounting for over 30 years because they recognize what many do not; most universities and trade programs are teaching students corporate accounting which isn’t preparing them for the typical, real-world accounting experiences they will encounter.
Becoming a small business accountant doesn’t require years of valuable time. UAC’s Professional Bookkeeper (PB) Program is not only reputable, but it’s self-paced, enabling a busy professional like you to take your time or complete the program quickly, in less than 60 hours.
Through this program, you will gain the confidence and skill necessary to start and manage nearly every client’s books, and when you have a question, our follow-up program enables you to call and ask one of our seasoned professionals.
By why stop with accounting services? Increase your business’s appeal by offering QuickBook services as well. UAC’s Professional Bookkeeper’s Guide (PBG) to QuickBooks will help you master this accounting software, and once you do, you can offer QuickBooks setup, help, and consultation services, charging $45 to $75 per hour.
Becoming a QuickBooks Specialist would provide you with numerous ways to bring in more business, increase your income, and make your job easier. You’ll find companies who want to do their accounting tasks themselves, but need help configuring QuickBooks to meet their needs. And once you’ve helped a company set up its initial QuickBooks system, who do you think they’ll turn to for help? You, of course! After all, you’ll have the training and expertise they’ll need whenever they run into a problem.
By turning your tax service into a full-service financial provider, you get your game on, working year-round for clients that not only need your services but value them enough to tell their friends and family about your business! Call 1-877-833-7909 to become the premier financial service provider in your area!
Zwilling, Martin. “10 Top Reasons Why First-Time Entrepreneurs Fails.” 14 September 2012