Many startups, even those that provide essential services like accounting and bookkeeping, fail within the first few years. After all, many owners don't realize exactly what's required of them in order to start a firm. They need to put in a ton of time, pay all upfront costs at once - such as buying desks, purchasing computer equipment, paying rent and thousands of other factors - exert efforts in building a successful team and many other elements.
However, knowing the major roadblocks that plague other accounting firm owners beforehand can help leaders avoid such challenges from day one. Armed with the knowledge of how to beat these obstacles can set company leaders on the right path to success down the road.
So what are these massive challenges? Knowing the little things that wouldn't seem like a big deal but that spell disaster for a growing company can mean the difference between success and total failure.
Going it alone
According to Business Insider, having one sole founder taking on all the responsibility for business decisions is the top reason companies fail. The stress builds and overwhelms this person, and there's no one for him or her to fall back on. This means that accounting and bookkeeping firm leaders should consider consulting with a partner - that way, they can double check on the big decisions and more easily dole out responsibilities.
If that's impossible, amassing a small team of employees at the beginning might also be a good choice. Moreover, if owners have investors to answer to and share in the big decisions, that might alleviate some of the pressure and help motivate them to be more responsible.
Running out of capital
Business Insider also named hemorrhaging money as another one of the largest reasons small companies fail not far out of the gate, though this doesn't seem like a risk that would befall accounting and financial experts. Consultant Steve Hogan told the news source that many companies get 90 percent of the way to success but then realize that they spent all of their money in the early days. The point is to make sure to ask for enough in investments or loans - being conservative is not going to do accountants and bookkeepers with their own business any favors.
Failing to test
Launching services without having any idea about how the target audience will react is a massive flub that is easy enough to overlook. Forbes Magazine explained that company leaders have to consult with others in the field regarding how the accounting services will be received, the trends of the market and other factors. This can most easily be done via testing and measuring metrics from day one.
Speaking with a marketer, as well as others who are inherently knowledgeable about the given target audience, is also often necessary, the news source suggested.