Talkinpeace can I ask you a question please?

[MarionCole]

How long have you been in business? And how long did it take you to really feel like you were earning a decent living? I've been going 4 months now; I have 3 clients on a monthly fee and one about to sign up. I'm encouraged by this but in all honesty I'm still earning a relative pittance! The clients are all small (and easy to administer) so I can't charge a high fee. I'm hoping it will snowball; will it?

Sorry, that was three questions.

I left full time employment in 1998
I'd had a few "homers" before then - with the full knowledge of my employers.
ALL of my clients are personal recommendations starting with ex clients of the firm I worked for (too small for the firm so passed on to us staff)
I do not advertise in any way shape or form
I now have 75 varying from weekly down to annually and fees range from barter to several thousand a year
I've just become a limited company for various reasons including class 4
My tax cheque week after next will be nearly £3000

It takes time.
I've had good lines of work and utter timewasters
but the best thing is to do what you do bloody well and then people will get their friends to come to you
for the first few years I relied on tax credits (as DH's business was just starting out too - he is now VAT reg)

Hang on in there - yes, it snowballs.
This will be your last ever peaceful January!
Get loads of CPD done !

Thanks; that's really encouraging.

The new clients I have are delighted in me. I had a set up meeting with my new client at his house last night, he mentioned that he has loads of contracting friends who are unhappy with their accountant but scared to move. I have to get this one right because there's the chance a lot of referrals.

This January has been good for my CPD. I've had three self-assessments to do, had the time to do them slowly and thoroughly and it's been a really useful learning process. I was an Associate Director at my last firm so it's a while since I've 'got my hands dirty'!

You're very right though about CPD. I've been using my down time to do things like tinkering with my website. Completely pointless when I'm getting hardly any hits!

I've also been wondering about offering a start-up package - incorporation, HMRC set up, 12 months accounts/VAT/PAYE and SATR but also domain name registration and basic website building. I built my own website and I now feel fairly confident in it. Need to think that through a bit.

Thanks for being a sounding board.

Can I offer some unsolicited advice too?

he has loads of contracting friends who are unhappy with their accountant but scared to move.

Is this a contractor with a company? Personally I wouldn't take this on without outsourcing an IR35 review to a specialist which would take a chunk out of the fee. If you are thinking of specialising in this area, it is a very crowded market with some slick operators that appeal to the IT crowd (which is a big section of the market). You will also need to be right on top of the moving target of regulation because although Cameron has (unfortunately) backed down from a wholsale reform of IR35 there is ongoing consultation which may lead to tinkering.

I've also been wondering about offering a start-up package - incorporation, HMRC set up, 12 months accounts/VAT/PAYE and SATR but also domain name registration and basic website building. I built my own website and I now feel fairly confident in it. Need to think that through a bit.

I think you would need to be careful about diluting the perception of what is (hopefully) a high quality professional accounting and tax service with (by your own admission) an amateur IT offering.

Totally concur with what MrAnchovy has said
and mucho appreciate additional input

can I add that working in your website when you have few hits is the way to build hits. Content is the best way, I'm told.

my DHs website pays my mortgage and bills but I had it professionally revamped by Simon at UKSitebuilder a couple of years ago - he said my coding made him weep! (he knows my real name and this one)
I stick to accounts now .......

Thanks for the input MrA. I'm very conscious about IR35 and I'm going to put some caveats in my engagement letter (must put that on my to do list). I take your point about slick contractor accountants, but in my experience they don't seem to offer much of a personal touch. They very much operate like a sausage factory and I'm marketing myself on being approachable. That said, I'm not particularly going to target that market.

I'm inclined to agree with you on my web design question.

Consider subbing IR35 issues to this lot.

Can I add too? Brand new MNer!!

I started 10 yrs ago with my DH and we have gone from strength to strength.

My tips would be:
Don't sell yourself too cheap even if you really need the work. Work on the basis that your client is coming to you for quality not price. Remember you will be very competitive compared to firms with overheads.
Don't give out too much free advice before signing up clients. You'll soon work out a good balance, but some people are just after free advice.
Don't take absolutely anybody on even though you are trying to build up a client base - the 80/20 rule.
Tell everybody you know, including existing clients, that are looking for new clients, and how excited you are to be able to offer a quality service - something along those lines. (you'd be delighted to take on their friend/contact etc without the impression that you're desperate!).
Can you train in Sage or QB? I have several good quality clients through that route - via QB professional partner and offering subcontractor services to bigger firms of accountants for QB training (obviously you can't pinch their clients tho!!). People think you're wonderful if you can set up their accounting system on QB/Sage and there's often follow up work.
Get out there! Local working mums network etc - new startups. Estate Agents who do with rental have people asking for someone to do their TR. Chat to your window cleaner/ plumber/ builder/ hairdresser/ etc etc etc. You will be surprised how many people would like an approachable & reasonably priced accountant. Once you get a few it starts to get very incestuous!!

Good luck (hope you're not in Kent now I've given you my tips!)

Thanks for all the tips; much appreciated.

MrA, do you know (roughly) how much they would charge for a compliance review?

You have a message :)