How to Write an Accounting Business Plan

Before you can speak intelligently to investors about financing your accounting firm, you need to write a business plan. A business plan is a sales tool which presents your idea for an accounting firm in terms that investors understand. It's a strategic document which reflects a considerable amount of research and planning.

Instructions

Devising an Idea That Will Sell

1. Outline the goals of your accounting firm. State in one sentence your mission statement so you and your potential investors understand what your business is all about.

2. Identify the legal structure of your business (sole proprietorship, partnership, LLC, LLP, S-Corporation, C-Corporation or Professional Corporation). Pay particular attention to the structures that help you avoid double taxation, such as an LLC or a Professional Corporation.

3. Describe your experience and skills in such a way that you can convince investors that they should trust you with their money.

4. Describe what services you provide and the competitive advantage you see your firm leveraging in your market. Craft your services to meet the hole in the existing market.

5. Identify your market and client potential. Estimate how much market penetration you expect to have.

6. Outline pricing for your services. Often this part is the most difficult to determine, but you can get help by calling accounting firms in markets outside your own and asking them what they charge.

7. Explain management and staffing so that investors get a feel for your organizational structure.

8. Outline equipment and office requirements.

9. Estimate start-up costs. You will need to list all expenses you expect the investment cover.

10. Estimate monthly operating costs. Provide as detailed a budget as possible. Consult other similarly sized accounting firms in order to match estimates.

11. Estimate projected revenue. Investors want a ballpark figure of how much you and they expect to make within a certain time frame.

12. Define the source of start-up and operating capital as well as the amount of time you expect to pass before the initial investment is recouped.

Writing and Presenting the Plan

1. Write the accounting firm's business plan with clarity and brevity. Investors appreciate not having to wade through pages and pages of unclear prose.

2. Check for spelling, punctuation and grammar errors. Any of these reflect poorly on your level of professionalism.

3. Prepare a brief oral presentation for investors. Leave them a copy of your business plan to read at their leisure.