As exciting as it is to buy an accounting firm, you will also have many questions during the process that you’ll need to answer. You will want to know about the current clients within that firm, the employees, whether you will need additional staff, how you are going to market your new business, and much more. These are all valid questions, and you should ask them at some point in the acquisition process. But before buying an accounting firm, you need to ask yourself two important questions first.
Do I Want to Run My Own Business?
The first question to ask when purchasing a business is who’s going to run it. Will it be you or someone else? The thought of being your own boss and owning a business that is all yours is certainly exciting. But with all that excitement also comes a huge burden of responsibility. Whether you feel you’re capable of running your own business is a question worth considering deeply. Think beyond being your own boss and ask yourself if you want to be responsible for the daily operations of the firm. Many people love the idea of being in control of their own accounting firm, but it is worth asking yourself if you are one of them.
When considering purchasing an accounting practice, you should also ask yourself what goals you have for the practice. Do you want to expand the practice, or change the direction of its services? What do you want the practice to look like in three years? Knowing the answers to these questions will help you make decisions much faster, and will make you more confident in what you decide.
Will I Be Successful?
This question is much trickier because there is never a 100% guarantee that you will be successful. To ensure success, you must enter into your new business with a high level of confidence, and hopefully a low level of risk. If you’re not feeling confident about the acquisition or feel there’s too much risk, those are huge red flags to consider before buying. You must also determine specific steps that will help with your success. For example, would accounting software help you manage the office easily and more efficiently? What does your marketing plan involve? How will you differentiate your service so you can earn higher fees?
While you have to ask yourself if and how you can succeed before buying an accounting firm, you should also ask yourself how you could fail. No one wants to think about being unsuccessful with their new accounting business, but it is important that you identify potential pitfalls and risks. Owning your own accounting firm is about seeing potential challenges and problems before they arise. If you can pinpoint these, you can prepare for them and work to ensure they do not happen.
Our Business Brokers in Washington Can Help
If you are considering buying an accounting firm, our Washington business brokers at Private Practice Transitions have the necessary experience to help you through the process. Our experienced brokers will answer any question you have and make sure you are also asking the most important ones. When you need to ensure that your transaction goes as smoothly as possible, call us at (253) 509-9224 or contact us online so we can assist with your purchase.
