59: What Does It Cost To Start, Grow Or Scale A Bookkeeping Business Or Add Bookkeeping As A VA
59: What Does It Cost To Start A Bookkeeping Business Whether You Want To Start A Bookkeeping Business, You Want To Grow Or Scale Your Bookkeeping Business, Or You Are A Virtual Assistant Looking To Add Bookkeeping Services
When you are thinking about starting a bookkeeping business, you first want to make sure that being a bookkeeper is right for you, and you need to know what a bookkeeper does. To do this, make sure you check out episodes 55 and 57 in this bookkeeper series. One of the next things you start to wonder about is how much will it cost to start a bookkeeping business. You’ve heard me talk about how bookkeeping businesses are one of the top most profitable businesses. Part of the reason for this is the low cost and overhead it requires to run the business. We all know that bookkeeping isn’t for everyone, but if it is for you, you know it can be profitable. That’s why bookkeeping businesses work so well for stay-at-home parents, new moms, side-hustlers looking for additional income, individuals who want a career change, accountants and bookkeepers working for an employer, college students needing extra income and retired individuals – or individuals getting close to retirement and are looking for supplemental income. In today’s episode, I am going to cover what the costs of starting a bookkeeping business are and just how surprised you might be about the amount of money you would need to spend to get started in a business that you will have total control of. By starting a bookkeeping business, you get to take on as much or as little work as you want. You get to decide how much money you’d like to make, and you are finally in control of your calendar and schedule so that you can take time off to enjoy life’s simple pleasures without any of the guilt you may have had in the past from working for an employer. Listen in today and you’ll see just how affordable starting your own bookkeeping business is and how you can take back control of your life…
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Show Notes:
When you are thinking about starting a bookkeeping business, you first want to make sure that being a bookkeeper is right for you, and you need to know what a bookkeeper does. To do this, make sure you check out episodes 55 and 57 in this bookkeeper series. One of the next things you start to wonder about is how much will it cost to start a bookkeeping business. You’ve heard me talk about how bookkeeping businesses are one of the top most profitable businesses. Part of the reason for this is the low cost and overhead it requires to run the business. We all know that bookkeeping isn’t for everyone, but if it is for you, you know it can be profitable. That’s why bookkeeping businesses work so well for stay-at-home parents, new moms, side-hustlers looking for additional income, individuals who want a career change, accountants and bookkeepers working for an employer, college students needing extra income and retired individuals – or individuals getting close to retirement and are looking for supplemental income. In today’s episode, I am going to cover what the costs of starting a bookkeeping business are and just how surprised you might be about the amount of money you would need to spend to get started in a business that you will have total control of. By starting a bookkeeping business, you get to take on as much or as little work as you want. You get to decide how much money you’d like to make, and you are finally in control of your calendar and schedule so that you can take time off to enjoy life’s simple pleasures without any of the guilt you may have had in the past from working for an employer. Listen in today and you’ll see just how affordable starting your own bookkeeping business is and how you can take back control of your life…
Welcome Back…thanks for joining me in this third episode of my special podcast series specifically for individuals who are interested in starting a bookkeeping business. You’ve heard me say that bookkeeping is considered one of the most profitable businesses you can start, but what you may be wondering is why it is such a profitable business. Well, for anything to be profitable, you need to have income that is larger than your expenses. The expenses you incur with a bookkeeping business are low. The overhead is low, which means that you don’t have to have a large amount of income to be profitable. Most bookkeepers have a home office which eliminates the amount needed to spend on rent and that money gets to stay right in your pocket. We are pretty lucky to have the technology that is available for us to be able to perform our work remotely. Not only does this keep our costs low, but it allows us to obtain clients from anywhere in the world if we want. I will admit, there are some clients that it would be fun to travel and visit, but that is a whole different topic…but would be fun, don’t you think?
We’ll start off with what the most common expenses are when you are starting a bookkeeping business. You first and foremost will need to have a computer and printer, unless you have a paperless office, and you’ll need to have a good internet connection, especially if you are a remote bookkeeper. You’ll need to have a phone, bookkeeping software, license, insurance and some office supplies. To be honest, most of you probably already have a computer, internet connection and a phone, so that leaves bookkeeping software, license, insurance and office supplies. In this scenario, you can see that the startup costs would be very minimal, and you could even get your bookkeeping software for free. I am walk you through how you can do this in my Elevate Your Bookkeeping Business Program which I’ll give you more details on a little later. So, you could start your bookkeeping business for very little investment, but even if you needed to purchase a new computer, a printer, a phone, internet, license, insurance and office supplies, you are probably looking at roughly about $4000, and that’s probably estimating a little high. This amount is a very little investment when you compare it to other businesses you could start up.
I am a pretty frugal person, and when I started my bookkeeping business, I was able to get started with little investment as well. I used the items I had and as my business grew, I made investments in new computers and other items. There are a lot of things you can do with what you already have. You may be looking at all kinds of other ways you could be spending money when you start your bookkeeping business, but I want you to really be careful when you decide to purchase additional items. There are a lot of businesses out there, and not just bookkeeping businesses, that spend money on items that are just not a good investment in their business. Make sure when you are investing in your business that there is going to be a good return on investment…especially when you are just getting started and you don’t have a lot of extra funds. Any investments you make in your business should help you save time and bring in additional income.
Now that we’ve established roughly how much it would cost to start a bookkeeping business, let’s talk briefly about how easily you could recoup these costs if you have a bookkeeping business. First, I want to say that none of the information I give on this podcast guarantees your earnings or your earning potential. You are the one in control of your bookkeeping business, and you are in control of how hard you will be working as well as how much money you will be making, but if we look at the potential to become profitable after spending the $4000 to start up your bookkeeping business, let’s break it down by client billing. If you have $4000 in costs and you charge your clients an average of $300 per month, you could recoup these costs in just a little over 2 months if you had 5 clients. Granted this scenario will be different for you depending on how many clients you have and how much you charge for your services, but it gives you an idea of how quickly your bookkeeping business could be profitable.
Just by going over how you easily it is to figure out how you are able to recoup your startup expenses in this example, you can do the same calculations to figure out how many clients or how much income you want to make in your business. Let’s take for example you are still working at your 9 to 5 job, but you want to start your own bookkeeping business as a side-hustle. You can decide how much additional money you would like to make with this business, and you can easily calculate out how many clients you would need to take on to bring in that additional income. Let’s say for example, you want to make an additional $1000 a month so that you could start taking some trips and traveling more. If you took on 4 clients per month, you would have your $1000 met and exceeded if you charged that same $300 average billing per client we mentioned in the previous example. Just imagine what you could do with an additional $1200 a month. Would you spend it on yourself, would you travel, would you be able to provide more for your family, or would you pay off some debt so that you would be debt free? I know everyone’s situation is different, but you can see how easily it is to run a few numbers and take control of your future.
Are you surprised at how low the costs are to start a bookkeeping business? Are you starting to think about how these costs would work in your particular situation? Do you already have a computer and phone? Which items would you actually have to purchase if you started your own bookkeeping business today? I’d love to hear more about how you are planning on starting your bookkeeping business. Head over to www.FinancialAdventure.com/Discovery and let’s schedule a virtual coffee chat. To be honest, I’ll be drinking hot chocolate, but I promise, we’ll have an amazing conversation. I love helping entrepreneurs just like you get their business up and running.
As I mentioned earlier, there are ways you can get your bookkeeping software for free. I am all about helping entrepreneurs who want to start a bookkeeping business do it as affordably, efficient and quickly as possible because we all know your income is going to be based on getting clients, so you want to start getting clients as soon as possible. This is the exact reason why I created The Elevate Your Bookkeeping Business Program. This framework is the same framework I used to create my profitable bookkeeping business. With this program, you will gain the confidence, skills & knowledge to create a profitable bookkeeping business of your own, without feeling alone, overwhelmed or confused about your next steps. This program is perfect for you if you want the freedom and flexibility to work from home…or anywhere actually…while earning a reliable income without sacrificing your time, and right now is the perfect time to enroll in this program. I have a limited time Black Friday Holiday Promotion where you will not only receive the Elevate Your Bookkeeping Business Program, but you will receive 12 months of my Elevated Bookkeepers’ Inner Circle Membership where you can attend live Q&A sessions, monthly trainings, get marketing templates, bookkeeping leads and more. I normally don’t offer one-to-one private coaching, but this special promotion also includes 12 monthly one-to-one private coaching sessions where you and I will work together so that you can create your profitable bookkeeping business. I’ll hold you accountable so that you are able to follow through each step of the process and achieve your success quickly. You can get this holiday promotion by going to www.FinancialAdventure.com/holiday, but hurry, there are limited spots available. If you are listening to this podcast after the Black Friday Holiday Promotion and you are interested in learning more, schedule that virtual coffee chat with me and we’ll talk about the best option for you and your business. If you have any questions, feel free to contact me at www.FinancialAdventure.com/Contact-Us - I personally respond to all my messages. I’ll post links to these and other valuable resources for you where you are listening to this podcast and in the show notes, and I’m looking forward to enjoying that virtual coffee chat with you soon.
And, you know I’m going to ask…what’s at least one thing you will take away from this episode that will help your business succeed and grow your bottom line? If you need some accountability, join our PRIVATE Facebook community and post your action item, we’d love to support you.
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