On your own: practical advice for starting your business.

• Author: Gray, Bruce A.
• Position: Venturing Out

Many CPAs dream of being their own boss, reaping the direct benefit of their hard work, free from the constraints of employer-related structure and expectations. Yet taking the leap into business ownership carries with it an ever-present fear of the risks involved.

It may be true that we fail by failing to start or that the only thing to fear is fear itself. But there are defined steps to take when starting your own business that will quell your fear and improve your chances for success.

THE BUSINESS PLAN

First and foremost is to write a business plan that includes:

* Your business purpose;

* Operational and administrative processes; and

* A financial projection.

Your business purpose. Identify the types of work you enjoy doing and do well. These should be the services you seek to provide and on which you build your practice.

Then, research immediate, intermediate and long-term trends and unfulfilled needs in your targeted service areas, while identifying details about your market, such as the size and industries within the business sector, as well as gender, age and income of targeted individuals. Dun & Bradstreet and the advertising departments of local publications such as a business journal are good sources for this information.

Identify your competition so you can determine who already is performing the services you intend to provide--and how much of the market they have. How will the services you provide be different?

Operational and administrative processes. Describe how you will implement the core processes of your business. Do a mental walk-through of the steps involved--from receiving a lead to billing for services rendered. Remember to include all indirect tasks such as computer-related responsibilities, continuing education and marketing.

When choosing which processes to standardize, keep in mind the need to focus on the values of your target market and quality relationships.

Financial projection. When preparing your projection, be sure that it supports personal financial goals and needs, succession plans and other areas of your overall financial position that your business may impact. When planning for your startup needs, identify financial resources to tap during the early stages of your business.

Determining just how much money you'll need to launch your business is dependent upon a number of factors, among them your location; whether you'll be renting space or working out of your home; equipment and furniture needs...