Ready to Start Your Own Business?

Source: AICPA CPA Insider

The following includes excerpts, reproduced with permission, from an article by Jeff Drew highlighting a recent AICPA roundtable discussion of accountants who are now business owners.

Panelists included business owners Jason Blumer, W. Michael Hsu, Scott Price and Donny Shimamoto.

A business owner first
Management and other accountants looking to start their own company need to understand that entrepreneurs are business owners first and that they will do very little, if any, actual accounting in their new role.

For starters, a purpose
The panelists emphasized the importance of having a well-defined niche and clear goals for their businesses.

Finding your niche is easier said than done. It took Hsu two years to find that his passion was working with entrepreneurs. Shimamoto said he believes that accountants can pursue their niche in their current jobs before looking to launch a company, though Blumer and Price expressed skepticism.

Struggle, stress, and support
Whatever the approach to launching the business, prospective entrepreneurs must be prepared for sacrifice and struggle. Price and Shimamoto, for example, both sold their houses to either start or grow their businesses. Hsu didn't take a salary for nearly two years.

Those considering the entrepreneurial realm should seek out business owners, whether in CEO groups or individually, who can provide advice and encouragement.

Employee essentials
All of the panelists emphasized the importance of employing the right people. To do that, entrepreneurs must be willing to hire people smarter than them, Price said.

“I want to be the dumbest guy in the firm,” he said. “I want to hire smart people, an all-star team.”

For the complete article, read “What it takes to start your own firm.”

From AICPA CPA Insider, August 27, 2012, http://www.CPA2biz.com.