Thank you all for your input. It is greatly appreciated.
To address the following:
Question for you, what type of staff do you imagine hiring, and what will your role in the new firm be?
– I am looking to hire one staff. A family member, I know this may be a problem, but its a risk I'm willing to take. The individual has decades of experience as a bookkeeper/office manager. She has two years of tax prep experience as well. My role would be like the role of any owner of all the other firms I'ved worked for. Have staff do the grunt work (input) and you do the technical stuff (review for accuracy). I have almost a decade of experience in public accounting (tax prep and auditing, all at CPA firms.)
Will they be preparing returns under your name and you review everything?
– I will be on-call and available via video chat for the potential clients. The staff will prepare the returns, that I won't be preparing myself, and of course I will review everything (again, this is just how i've seen it work for years)
Do you think you will hire people on the cheap that require no training or oversight M-F?
– As mentioned previously, the individual is a family member whom will benefit from my success. They are willing to take a lower pay (on the cheap) for now. And they know, if the business takes off and expands their comp will increase as well.
I am curious how you see this all playing out in your mind.
Software – we run UT but its pretty expensive. I have heard Drake is pretty good and much more affordable. I think they offer a trial version so you can try it out.
– I have experience with Prosystem fx, Go System, and Proseries (of which I am using in my practice).
-To the other issues:
1) My employer knows that I have a side business as a CPA. I know it shouldn't matter, but there are various other people in the firm that have side gigs (photography, directors, etc.) – let me clarify that I work within the tax department of a Management Company. The clients I am going after ($300 1040s) are not worth their time. Therefore, there is no conflict of interest in clients. I know I should be trying to move up in the company, but I don't see myself sitting next to Chris Rock, or Ralph Lauren, (type of clients company has) at dinner and asking “are you happy with your business manager?” If I could do this I would rather do that.
2) I know it will be tough starting out. That is why I'm not giving up my full-time employment and having someone I trust to run the firm. I used to work 80-100hr weeks 7days/week at my previous employer. Fortunately, my employer only requires a 5days work week with maybe 50-60hrs/week during busy season. So instead of sitting back and enjoying the time off. I'm trying to build a business so that I don't have to be doing this shit when I'm 40.
The office I'm renting is on a month to month lease, so come end of February if I haven't gotten any business, I can move out. I should also add that I have a number of clients already which I net about 15k on for the year (separate from salaried position). So I see myself in a position where I can leverage that income to open up an office (to get walk-ins/new clients) or just pocket that money. Sry probably should of added that in my original post. Between Rent, payroll, etc (cost of having the office and staff) at most I'd spend 5-6K for January-February. Targeted clientele will look for prep right when they get there info (end of January W-2s). So come mid-end of February, if the office isn't making money, I can just close it.
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