How A Personal Service Can Be Turned Into A Profitable Corporation
Many people, whatever their line of work, are frustrated working for others and want to set up their own business. This can be a very hard but usually rewarding step to take. However, for some this is not enough and they will want to grow their business even further.
Each world wide organisation was at some time in its history a small business. Very often this would be a person with a trade wanting to work for themselves. The same can be said as much for Gates before Microsoft was established as it is for an accountant leaving PWC to set up a local firm.
If you have a skill, be it as an accountant, a plumber or a computer programmer, if you want to set up in business you must be confident that you can attract work and administer a business yourself. This can be very challenging, but there are some who realise that they are much better at running the business than they are at doing the work! By hiring administrative staff and others with technical capabilities they see more profits by allowing them to concentrate on bringing in new customers and overseeing the business.
Taking the accountant as an example the reasons behind this development can be seen. The successful, dynamic and entrepreneurial person will no doubt have reached a reasonably senior position within the accounting profession by the time he or she feels that working for others is too constraining. A good quality lifestyle will be expected and they will know the sorts of fees that need to be charged to achieve this working for themselves.
The administration work is much too mundane for them to spend their valuable time doing. Their time is better spent doing highly paid skilled work. This results in there being an incentive to employ a secretary. Similarly, much of the routine technical work could be done by a less experienced accountant and the need for a junior assistant is recognised. As the enthusiastic business owner builds up the business even further he may begin to realise that more efficiency could be gained if additional staff spent time sharing his duties of winning work and supervising junior staff.
Eventually he will have recruited at more senior levels and even invited junior partners to join him in owning the business. It will not be long before the entrepreneur ceases doing any accounting whatsoever and spends all of the time on strategic management such as negotiating mergers and acquisitions of other accounting firms and thus growing the business even more!
About the Author
Mark Jenner is a Fellow of the Institute of Chartered Accountants in England and Wales, specialising in business matters and fraud. He advises on small business opportunities and working from home. His web site gives free advice and articles on starting a new business =>
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