How To Start A Bookkeeping Business, Start With The End In Mind!

If you are wanting to sell or value your business later on

, you need to consider how you will develop goodwill. If you are working in your business yourself and your clients want you to service them, this can be tricky. Not many people are interested in buying a business which only has one principal who services all clients. You can combat this by having a business development plan earlier rather than later. If you know you want to retire or sell your business a few years down the track, start looking at your exit strategy.

You need to make the business attractive for a potential buyer, they need to see value in it and want to pay for your hard work. The revenue of possible fee generation will only be one criterion that will be assessed. Even the best client base and revenue can be greatly reduced by only one person in a business with their name on the door. Of course it is not impossible and you can work on your exit strategy, improving your successors chances of succeeding and thereby increasing your asking price for your business. The hand over can be over several months, introducing the new owner to the clients and gradually getting the new owner to step in and you to gradually reduce your hours.

If you have picked a business name which comprises your name or similar and you are a sole practitioner you can look at changing your name into something more generic some time before you wish to retire or sell. You could start slowly by arranging an employee to get your clients used to dealing with someone else.

You can look at selling your fees when it is time to move on, or you could arrange to give them to another practice and continue to receive a royalty or ongoing fee for a certain period of time.

If you have family who are interested you could have a succession plan and have a family member take over the business.

If you have a bigger practice and already have staff, you could investigate the value of your business and investigate options for sale with an experienced, reputable business broker.

I know retirement or succession may seem years and years away, but it is always a good idea to understand the end result when starting and developing your business, this way you will always arrive at where you wanted to be.

by: Julia Nitschke

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