Easy Way to Start a Bookkeeping Business – Bookkeeping Subcontracting

There are many ways that you can realize your dream of starting a bookkeeping business. One of the easier ways is bookkeeping subcontracting.

Get contact with your local accountants and tell them that you are just starting out in this line and are able to deal with any bookkeeping or accounting assignments. Some of them are more than happy to refer you to their clients because many a time bookkeeping is not their main source of income. This is usually termed as bookkeeping subcontracting.

There are many benefits of this kind of arrangement. Firstly, you get to broaden your horizon because of the opportunity of exposing yourself to different type of business bookkeeping. Secondly, your risk of not being paid by your clients is much lower since you will be paid by your local accountants. This saves you from dealing with collecting debts and hence you can spend more time on other productive activities.

On the contrary, bookkeeping subcontracting does has its limitations. It restricts you from building your own clients base and therefore it should be a temporary measure to sustain your bookkeeping business. In the long run, you should allocate sufficient time to network with business owners, conducting talks on business bookkeeping, send out sales letter to potential customers of your services so that to reduce your reliance on local accountants.

Starting a bookkeeping business can be relatively easier. But it is generally agreed that the more difficult part is how to sustain it in the long term without bookkeeping subcontracting.

Small Business Marketing Strategies for Tackling Big Competitors

One of the great challenges facing small business owners is that they must often battle for customers against larger competitors, who can afford to run more advertising, offer lower prices, and who are better established in the marketplace.

And yet some small business owners do it very successfully. How?

There are some proven marketing strategies to use when competing against larger, more established competitors. These strategies have been used successfully by companies of all sizes to drive sales and carve out a sustainable position in the market. They apply to online commerce and traditional small businesses.

Here are details on two such strategies that you can use as a small business owner to help grow your business when competing with larger competitors:

Take the “Alternative” Position

If you are up against the market leader in your business, shift your market position so you don’t compete directly with them on their turf. Become the “alternative” to the market leader – that is, promote and advertise an aspect of your product/service that the leader simply can’t offer. This is a classic marketing strategy that has been used successfully by small companies and major corporations, because it allows you to compete with the leader in a part of the market where they may not be very strong.

Pepsi couldn’t beat Coke at the cola wars, because Coke was viewed as the original cola drink that had no substitutes. That was fine with Pepsi. It let Coke have that territory, and instead marketed itself as the “Choice of a New Generation”. Its marketing appeal and target audience was young and cool – everything that Coke couldn’t be with their more traditional positioning. Pepsi successfully carved out the number 2 position in the market by becoming the primary alternative to Coke, and made billions in the process.

The rule applies to everything from .com companies to local furniture stores. Survey the competitive landscape in your market and determine how you can position your business as the best alternative to the established market leader. Second place in a given market can be a very nice place to be from a profitability standpoint.

Sell what they don’t have – You!

Many small business owners have found success by building their personal reputations as experts in their field, with significant benefits to their small business. They have become the “public face” for their company.

Some large companies have a “public face”, a person who represents the company in the minds of customers (Richard Branson for Virgin is one). But most don’t. As a small business owner, you can effectively represent yourself as an expert in your area of expertise, and drive awareness for your small business in the process.

One of the most effective ways to build your reputation is through the credibility that comes from publicity and media relations activities.

Here are some guiding principles to working with the media as a small business owner:

View it as a relationship – reporters need story ideas and expert sources – you can offer both when it comes to your area of expertise to create a win-win situation

Pitch story ideas about what’s new and what’s changing – the media likes to break news about emerging trends, either in your industry or related to your experience as a small business owner

Strive for repeat business – once a reporter has identified you as a good source of information on a topic, they will keep coming back to you – so ensure that early in your relationship you are available to them and willing to offer help in getting information for them to pull a story together

Having a single person leading the charge to build media relationships and run the company makes it easier to transfer the goodwill that you achieve in the media over to your business activities. This doesn’t work nearly as well for larger companies, so leverage this competitive advantage and take a personal approach to building your business through publicity.

You Can Compete!

Small business marketing is all about leveraging the built-in advantages of being a small enterprise in the battle against larger competition for customers and sales. Establishing your business as an alternative to the market leader in your business, and building personal credibility that can be transferred to your small business are just two strategies that you can implement to help your small business succeed against bigger competitors.

How to Start a Bookkeeping Business – Do You Need Professional Indemnity Insurance?

If you are in the process of starting a bookkeeping business there are many aspects which you will need to consider. One of the most important insurances you will need to consider for your business is professional indemnity insurance. With out it you might be risking the long term future of your business.

As a service based business, you will be promoting your own professional services and know how to clients. If there is a time where your clients accuse you of substandard work which causes them a loss of some description, professional indemnity insurance is there to help you with this problem.

Historically, professional indemnity insurance for bookkeepers was quite expensive as this type of career choice was seen to be a risky profession. Additionally there was not a lot of choice in the market place for insurers who would even offer professional indemnity insurance and this also meant higher premiums. Consequently, many public practice bookkeepers did not either consider it, or after investigation, they ascertained it was too expensive for their small business.

Fortunately as times have changed and bookkeeping has become a recognized mainstream career choice, it is getting easier to obtain not only a cheaper premium, but there are also more insurers to choose from. In Australia in particular, with the introduction of goods and services tax (GST) in 2000, bookkeeping became widely recognized as many small business people looked for an in house bookkeeper for the first time. With this influx of requests for bookkeepers and more people seeing an opportunity with the relevant skills to start their own small bookkeeping business, professional indemnity insurance has seen a rise of interest and a reduction of premium cost.

If you are starting your own bookkeeping business, professional indemnity insurance can save your business from ruin if there is ever an issue or a time where you may need to make a claim. Since it is such a vital part of any bookkeeping business, it is important to look at different options to source a quote.

If you are a member of a professional association, and I mist admit I highly recommend this for many reasons, your professional body will most likely be able to offer a premium for its members. Many professional associations can provide low premiums due to bulk purchasing power and discounts offered by insurers for obtaining the associations business. If you are not a member of a professional association, you can always research which organizations they use and obtain an independent quote.

Be sure to obtain a number of quotes and look at each policy and assess them against your own needs. Policy prices these days are quite affordable and like any insurance will pay for itself many times over should you ever need to use it.