{"id":1289,"date":"2016-06-28T10:39:47","date_gmt":"2016-06-28T15:39:47","guid":{"rendered":"https:\/\/taxprocenter.proconnect.intuit.com\/?p=1289"},"modified":"2018-03-06T17:21:26","modified_gmt":"2018-03-06T23:21:26","slug":"how-do-you-know-when-its-time-to-start-your-own-firm","status":"publish","type":"post","link":"https:\/\/accountants.intuit.com\/taxprocenter\/practice-management\/how-do-you-know-when-its-time-to-start-your-own-firm\/","title":{"rendered":"How Do You Know When it\u2019s Time to Start Your Own Firm?"},"content":{"rendered":"

I was recently talking to my husband about a few things we had going on.<\/p>\n

\u201cRemember when I started my practice?\u201d<\/i> He replied,“Of course, I was scared to death.\u201d<\/i><\/p>\n

News to me, but it would not have mattered. I knew when I was 22 years old that I would eventually be working for myself, and by the time I started Kildal Services LLC<\/a>, I also knew giving up my day job was the right choice.<\/p>\n

I think I also should have been as terrified as he was. The truth is, it never occurred to me that it wouldn\u2019t work out, and once I got to a point where I realized, \u201cWhoa, this is all on me; I\u2019m the one that has to get the clients, do the work and stay current on just about everything,\u201d there just wasn\u2019t any time to be scared.<\/p>\n

Whether you\u2019re starting your own tax practice or looking for monthly service clients, going out on your own takes a leap of faith \u2013 and a truckload of hustle \u2013 to start your own business. Here are seven ways you know you\u2019re ready to start your own firm:<\/p>\n

    \n
  1. You current job isn\u2019t giving you a buzz.<\/b> By all means, don\u2019t run out to start your own practice if you\u2019re not fulfilled in your work. Instead, examine why you\u2019re dissatisfied. Maybe tax and accounting isn\u2019t for you, but if you love parts of what you do, instead of the structure imposed on you by your employer, it may be the right time to start your own business and focus on the work you love.<\/li>\n
  2. You know your stuff.<\/b> There\u2019s a distinct advantage to having seen how a business is run, from sales to operations. If you\u2019re still employed, but think you want to do your own thing, spend some time observing how your current employer is handling things.<\/li>\n
  3. But, you don\u2019t know it all.<\/b> Owning your own business is a bit like parenting \u2013 you think you know what to expect, but once it happens, you realize you had NO IDEA WHATSOEVER. Starting your own business will teach you a lot about yourself, the types of people you like to work with, what you\u2019re good at doing and what you\u2019re really not good at doing. If you aren\u2019t ready to see the hard truth about yourself, starting your own practice may not be for you.<\/li>\n
  4. You\u2019re ready to work hard.<\/b> Many people love the freedom of not having a boss, yet underestimate the amount of work involved. Owning your own business is hard work. You have to find clients, do their work, and manage the infrastructure and administrative tasks, such as your own invoicing and bookkeeping. Seriously, be ready to work twice as many hours, often at odd times.<\/li>\n
  5. You know the risks. <\/b>Before you start your own firm, examine the risks. There\u2019s the loss of a regular paycheck and medical insurance benefits, of course, but there are additional risks you may need to factor before making a decision. One rule of thumb is to have three to six months of living expenses put away, but everyone\u2019s situation is different. It\u2019s better to err on the side of less conservative spending, just in case you need the extra money.<\/li>\n
  6. You aren\u2019t afraid of failure.<\/b> There are some nasty statistics out there: eight out of 10 businesses fail in the first year, and 96 percent of businesses dissolve within 10 years. There will be things you try, just to crash and burn in a glorious ball of fire. Own those mistakes and learn from them. If you\u2019re going out on your own, you need to be ready to define your own success and not worry about what other people are doing.<\/li>\n
  7. You\u2019ve got a vision.<\/b> You need to know the type of clients you want to work with, where you\u2019ll find them, the services you\u2019ll offer and how you want to run the administrative part of your business. You\u2019ll also need income goals and a plan for how to get there. I still do it the old fashioned way: I write it down into five-year, one-year, quarterly and monthly goals.<\/li>\n<\/ol>\n

    Starting your own business isn\u2019t for the weak at heart, but it\u2019s well worth the time, energy and sweat. You\u2019ll need to weigh the pros and cons, including practical concerns and those that impact your psyche. Good luck!<\/p>\n

    Editor’s note:\u00a0<\/strong>Is it time for you to start your own practice? If so, check out\u00a0our guide to “How to Start a Professional Tax Practice<\/a>, ” or read “Buying and Selling a Tax Practice<\/a>.”<\/p>\n","protected":false},"excerpt":{"rendered":"

    I was recently talking to my husband about a few things we had going on. \u201cRemember when I started my practice?\u201d He replied,“Of course, I was scared to death.\u201d News to me, but it would not have mattered. I knew when I was 22 years old that I would eventually be working for myself, and<\/p>\n","protected":false},"author":107164775,"featured_media":1291,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rkv_reviewed_by_select":[],"rkv_browse_by_id":0,"rkv_cta_id":0,"rkv_optimize_for_pagespeed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"useModifiedDate":false,"customPublishDate":"","customModifiedDate":"","_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"{title}\n\n{excerpt}\n\n{url}","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"_wpas_customize_per_network":false,"jetpack_post_was_ever_published":false},"categories":[507998780,116807],"tags":[],"intuit_collection":[],"intuit_series":[],"coauthors":[509474162],"class_list":["post-1289","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-grow-your-practice","category-practice-management"],"header_image":"","yoast_head":"\nHow Do You Know When it\u2019s Time to Start Your Own Firm? - Tax Pro Center | Intuit<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/accountants.intuit.com\/taxprocenter\/practice-management\/how-do-you-know-when-its-time-to-start-your-own-firm\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How Do You Know When it\u2019s Time to Start Your Own Firm? - Tax Pro Center | Intuit\" \/>\n<meta property=\"og:description\" content=\"I was recently talking to my husband about a few things we had going on. \u201cRemember when I started my practice?\u201d He replied,“Of course, I was scared to death.\u201d News to me, but it would not have mattered. 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