Are you about starting a tax preparation company? If YES, here’s a complete sample tax preparation service business plan template & feasibility report you can use for FREE to raise money.
Okay, so we have considered all the requirements for starting a tax preparation business. We also took it further by analyzing and drafting a sample tax preparation service marketing plan template backed up by actionable guerrilla marketing ideas for tax preparation businesses. So let’s proceed to the business planning section.
Have you ever thought of becoming your own boss? Did you by chance study Accountancy or any tax related course and are finding it difficult to get your ideal job? You don’t need to worry because your dream of becoming your own boss and still work as an accountant can be fulfilled with little or no start-up capital.
Table of Content
- 1 Why Start a Tax Preparation Service Business?
- 2 Tax Preparation Service Business Plan – Executive Summary
- 3 Tax Preparation Service Business Plan – SWOT Analysis
- 4 Tax Preparation Service Business Plan – MARKET ANALYSIS
- 5 Tax Preparation Service Business Plan – SALES AND MARKETING STRATEGY
- 6 Tax Preparation Service Business Plan – Publicity and Advertising Strategy
- 7 Tax Preparation Service Business Plan – Financial Projections and Costing
- 8 TAX PREPARATION BUSINESS GROWTH: Sustainability and Expansion Strategy
Why Start a Tax Preparation Service Business?
In case you didn’t know, there are loads of households, small businesses, mom and pop businesses, amongst a few without the faintest idea of any tax preparation skills. These businesses struggle with their tax concerns a lot.
Research shows that one of the reasons why many small businesses remain small and sometimes close shop is not because they don’t have clients or capital to run the business but because they fail to keep their books and manage their tax properly. If you are an accountant or a tax consultant, then you can leverage on this read to start your own tax preparation services Business.
You can be sure that your services would always be in demand by those small businesses that can’t afford to hire a full time accountant or tax consultant. They know that it would save them cost and one good thing about it is that you can handle up to 20 clients per time depending on how organized and hardworking you are.
If you think this sounds like the type of business that you will like to run, then the first thing that ought to consider doing is to do all the ground works that needs to be done. One of the groundwork is to undertake a thorough feasibility research. One of the very essences of carrying out a research is hinged on the point that you will come across thing that will be useful to you.
Yet another thing that you will need to do is to write a business plan. These days, writing business plans are a lot easier as you can use business plan templates to tweak yours. Here below, is a sample business plan;
A Sample Tax Preparation Service Business Plan Template
- Business Overview
The financial services industry is indeed a very broad industry and one of the active lines of businesses in the industry is tax preparation services business. Tax preparation services is all about helping individuals and small businesses provide income tax compilation services, income tax return preparation services, and other tax return preparation services; it is part of the process of financial accounting in business.
In recent times, the Tax Preparation Services industry went through a slight downturn during the recession due to a decline in national employment and of course a decrease in disposable income. However, the industry rebounded immediately after the recession phase as the national unemployment rate fell, and revenue increased as more Americans were required to file tax returns.
At about same period, the tax preparation services industry landscape begun to change, with consumer preferences increasingly trending toward establishments that offer online filing services options. Despite the fact that the recent improving economic conditions are expected to support the growth of revenue generated in the industry, some tax preparations’ performance will be stunted, as online tax preparation service providers pose a big threat traditional brick-and-mortar firms.
The Tax Preparation Services industry is indeed a large industry and pretty much active in countries such as United States of America, United Kingdom, France, Italy, Holland, Switzerland, Japan, China, Germany, and Canada et al.
Statistics has it that in the United States of America alone, there are about 118,890 registered and licensed Tax Preparation Services firm responsible for employing about 292,718 and the industry rakes in a whooping sum of $10 billion annually. The industry is projected to enjoy 4.5 percent annual growth. The establishments with the lion share available in this industry in the United States are H & H Block Inc., Intuit and Jackson Hewitt.
According to a report published by IBISWORLD, it was observed that households in all socioeconomic groups across the United States use the services of tax preparers. As a result, industry establishments and revenue are distributed in line with regional population. Many people use the tax preparation firm nearest to them, out of convenience. Which is why when an area is underserved, more firms move into that area to stake a claim in the market.
In the same way, tax preparation firms tend to move locations when the competition is too high and profit margins begin to suffer. Approximately 85.1 percent of operators in this industry are non-employers that do not have the capacity or market power to provide services beyond their own neighborhood. While some of these firms are part of a national network, they primarily serve local consumers.
One thing is certain about starting a tax preparation services business, if you are able to conduct your market research and feasibility studies, you are more likely not going to struggle to secure clients because there are always individuals, households, mom and pop shops, start – ups and even corporate organization who would want to hire your services.
Lastly, with tax preparation services business, you can afford to partner with other smaller firms that are into financial related services. You can partner with accounting and bookkeeping consulting firm, you can partner with auditing firms and you can partner with human resources consulting firms et al. The bottom line is that, if you have a robust network and you are well positioned, you can indeed maximize your tax preparation services business.
Tax Preparation Service Business Plan – Executive Summary
Henry Murdock Tax Consulting, LLP is a registered and licensed financial consulting firm with strong bias in tax preparation services and will be based in Saint Paul – Minnesota. The firm will handle all aspects of tax preparation related services; services such as income tax compilation services, income tax return preparation services, basic tax preparation services, standard tax preparation services, full-service tax preparation services, tax-related financial products and other related tax return preparation services.
We are aware that to run an all – round and standard tax preparation services firm can be demanding which is why we are well trained, certified and equipped to perform excellently well.
Henry Murdock Tax Consulting, LLP is a client – focused and result driven tax preparation services firm that provides broad- based services at an affordable fee that won’t in any way put a hole in the pocket of our clients. We will offer standard and professional tax preparation services to all to our individual clients, and corporate clients at local, state, national, and international level. We will ensure that we work hard to meet and surpass our clients’ expectations whenever they hire our services.
At Henry Murdock Tax Consulting, LLP, our client’s best interest would always come first, and everything we do is guided by our values and professional ethics. We will ensure that we hire professionals who are well experienced in the financial consulting services industry with bias in accounting, bookkeeping and payroll administration.
Henry Murdock Tax Consulting, LLP will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.
We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients.
Our plan is to position the business to become the leading brand in tax preparation services line of business in the whole of Saint Paul – Minnesota, and also to be amongst the top 20 tax preparation services businesses in the United States of America within the first 10 years of operations.
This might look too tall a dream but we are optimistic that this will surely be realized because we have done our research and feasibility studies and we are enthusiastic and confident that Saint Paul – Minnesota is the right place to launch our tax preparation services business before sourcing for clients from other cities in The United States of America.
Henry Murdock Tax Consulting, LLP is founded by Henry Murdock and Lucy Kent, his business partner for many years. The organization will be managed by both of them since they have adequate working experience to manage such business. Henry Murdock has well over 5 years of experience working at various capacities within the financial cum tax consulting services industry in the United States of America.
Mr. Henry Murdock graduated from both University of California – Berkley with a Degree in Accounting, and University of Harvard (MSc.) and he is a chartered account with background on taxation. Lucy Kent has ample experience in the area of tax consulting and financial auditing.
- Our Product and Services
Henry Murdock Tax Consulting, LLP is going to offer varieties of services within the scope of the tax preparation services industry in the United States of America. Our intention of starting our tax preparation services firm is to work with individuals, household, smaller organizations (start – ups and mom and pop shops) and also well – established corporate organizations who would want to outsource their tax preparation concerns.
We are well prepared to make profits from the industry and we will do all that is permitted by the law in the United States to achieve our business goals, aim and ambition. Our business offering are listed below;
- Income tax compilation services
- Income tax return preparation services
- Basic tax preparation services
- Standard tax preparation services
- Full-service tax preparation services
- Tax-related financial products
- Other tax return preparation services
- Other financial consulting and advisory related services
Our Vision Statement
Our vision is to build a tax preparation services brand that will become the number one choice for individuals, household, smaller businesses and corporate clients in the whole of Saint Paul – Minnesota. Our vision reflects our values: integrity, service, excellence and teamwork.
- Our Mission Statement
Our mission is to provide professional, reliable and trusted tax preparation services that assist individuals, household, start – ups, corporate organization and non-profit organizations in organizing their tax returns related concern.
We will position the business to become the leading brand in the tax preparation services line of business in the whole of Minnesota, and also to be amongst the top 20 tax preparation services firms in the United States of America within the first 10 years of operations.
- Our Business Structure
Ordinarily we would have settled for two or three staff members, but as part of our plan to build a standard tax preparation services firm in Saint Paul – Minnesota, we have perfected plans to get it right from the beginning which is why we are going the extra mile to ensure that we have competent, honest and hardworking employees to occupy all the available positions in our firm.
The picture of the kind of tax preparation services business we intend building and the business goals we want to achieve is what informed the amount we are ready to pay for the best hands available in and around Saint Paul – Minnesota as long as they are willing and ready to work with us to achieve our business goals and objectives. Below is the business structure that we will build Henry Murdock Tax Consulting, LLP;
- Chief Executive Officer
- Tax Preparation Administrator
- Admin and HR Manager
- Marketing and Sales Executive
- Customer Care Executive / Front Desk Officer
Roles and Responsibilities
Chief Executive Office:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
- Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
Tax Preparation Consultants
- Handle income tax compilation services
- Handles income tax return preparation services
- Responsible for handling basic tax preparation services
- Handles standard tax preparation services
- Responsible for handling full-service tax preparation services
- In charge of all tax-related financial products
- Handles other tax return preparation services
- Responsible for other financial consulting and advisory related services
Admin and HR Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Designs job descriptions with KPI to drive performance management for clients
- Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Defines job positions for recruitment and managing interviewing process
- Carrying out staff induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
- Oversees the smooth running of the daily office activities.
Marketing and Sales Executive
- Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of relevant projects.
- Writes winning proposal documents, negotiate fees and rates in line with company policy
- Responsible for handling business research, marker surveys and feasibility studies for clients
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Develops, executes and evaluates new plans for expanding increase sales
- Documents all customer contact and information
- Represents the company in strategic meetings
- Helps to increase sales and growth for the company
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- create reports from the information concerning the financial transactions recorded by the bookkeeper
- Prepare the income statement and balance sheet using the trial balance and ledgers prepared by the bookkeeper.
- Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for one or more properties.
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for the company
- Serves as internal auditor for the company
Client Service Executive / Front Desk Officer
- Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the manager in an effective and timely manner
- Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
- Receives parcels / documents for the company
- Distribute mails in the organization
- Handles any other duties as assigned my the line manager
Tax Preparation Service Business Plan – SWOT Analysis
Henry Murdock Tax Consulting, LLP engaged the services of a core professional in the area of business consulting and structuring to assist the firm in building a well – structured tax preparation services firm that can favorably compete in the highly competitive financial consulting cum tax preparation services industry.
Part of what the team of business consultant did was to work with the management of our organization in conducting a SWOT analysis for Henry Murdock Tax Consulting, LLP. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Henry Murdock Tax Consulting, LLP;
Our core strength lies in the power of our team; our workforce. We have a team that can go all the way to give our clients value for their money; a team that are trained and equipped to pay attention to details and to deliver excellent tax preparation jobs. We are well positioned and we know we will attract loads of clients from the first day we open our doors for business.
As a new tax preparation services firm, it might take some time for our organization to break into the market and gain acceptance especially from top corporate clients in the already saturated tax preparation cum financial consulting services industry; that is perhaps our major weakness. So also we may not have the required cash to give our business the kind of publicity we would have loved to.
The opportunities in the tax preparation cum financial consulting services industry is massive considering the number of individuals, households, mom and pop businesses, start – ups and of course corporate organizations who can’t afford to do without the services of tax preparation service providers. As a standard and well – positioned tax preparation service provider, we are ready to take advantage of any opportunity that comes our way.
Some of the threats that we are likely going to face as a tax preparation service firm operating in the United States are unfavorable government policies, the arrival of a competitor within our location of operations and global economic downturn which usually affects purchasing / spending power. There is hardly anything we can do as regards these threats other than to be optimistic that things will continue to work for our good.
Tax Preparation Service Business Plan – MARKET ANALYSIS
- Market Trends
The financial consulting services industry of which tax preparation services is a subset of is indeed a very large industry and of course it is one industry that works for individuals and businesses across different industries. If you are conversant with the trend in the financial consulting services industry,.
You will agree that loads of mom and pops, businesses, and start – up ventures that do not have the capacity to hire chatter accountants to handle their tax returns concern would naturally hire the services of tax preparation services providers who would usually charge them service charge.
Relatively, it is cheaper and less stressful to hire the services of tax preparation service providers as against employing a qualified accountant or tax consultant. In recent times, the Tax Preparation Services industry went through a slight downturn during the recession due to a decline in national employment and of course a decrease in disposable income.
However, the industry rebounded immediately after the recession phase as the national unemployment rate fell, and revenue increased as more Americans were required to file tax returns. At about same period, the tax preparation services industry landscape begun to change, with consumer preferences increasingly trending toward establishments that offer online filing services options.
Another notable trend in the tax preparation cum financial consulting services industry is that in the last five years, the industry has performed impressively as a large reduction in unemployment boosted the revenue generated in the industry.
So also, the tax preparation cum financial consulting services industry has benefited from the advancement of online and computer tax preparation services, with new cloud-based offerings providing a new revenue stream for operators, and attracting new customers. Going forward, increasing product penetration and of course an expanding customer base is expected to drive growth in the industry.
- Our Target Market
The demographic and psychographics composition of those who need the services of tax preparation service providers cuts across individuals and households, small businesses and large corporations.
Henry Murdock Tax Consulting, LLP will initially serve individuals and households, small to medium sized business, from new ventures to well established businesses and individual clients, but that does not in any way stop us from growing to be able to compete with the leading tax preparation service firms in the United States.
As a standard and licensed tax preparation service firm, Henry Murdock Tax Consulting, LLP offers a wide range of tax preparation services cum financial consulting services hence we are well trained and equipped to services a wide range of clientele base.
Our target market cuts across businesses of different sizes and industries. We are coming into the industry with a business concept that will enable us work with the small businesses and bigger corporations in and around Saint Paul – Minnesota and other cities in the United States of America. Below is a list of the businesses and organizations that we have specifically design our products and services for;
- Individuals (corporate executives and business people)
- Mom and Pop Businesses
- Corporate Organizations
- Political Parties / Politicians
- Hotels and Restaurants
- Schools (High Schools, Colleges and Universities)
- Sport Organizations
- Entrepreneurs and Start – Ups
Our Competitive Advantage
The level of competitions in the tax preparation cum financial consulting services industry depends largely on the location of the business and of course the niche of your financial consulting services. If you can successfully create a unique brand identity for your tax preparation services firm or carve out a unique market, you are likely going to experience less competition.
For instance if you are one of the few tax preparation services firms in your locations that also offer bookkeeping and financial auditing services and also online tax preparation services, you are likely going to have a competitive advantage over your competitors.
Although the competition in the tax preparation services line of business is not just within same service providers but also other financial consulting related service providers in the tax preparation cum financial consulting services industry.
We are quite aware that to be highly competitive in the tax preparation services cum financial consulting services industry means that we should be able to deliver consistent quality service, our clients should be able to experience remarkable difference cum improvement and we should be able to meet the expectations of clients.
Henry Murdock Tax Consulting, LLP might be a new entrant into the tax preparation services cum financial consulting services industry in the United States of America, but the management staffs and owners of the business are considered gurus. They are people who are core professionals and licensed and highly qualified tax consultants in the United States. These are part of what will count as a competitive advantage for us.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (start – ups tax preparation service providers) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.
Tax Preparation Service Business Plan – SALES AND MARKETING STRATEGY
We are mindful of the fact that there are stiffer competition amongst tax preparation service providers and other related financial consulting service providers in the United States of America; hence we have been able to hire some of the best business developer to handle our sales and marketing.
Our sales and marketing team will be recruited base on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization. We will also ensure that our excellent job delivery speaks for us in the market place; we want to build a standard tax preparation service business that will leverage on word of mouth advertisement from satisfied clients (both individuals and corporate organizations).
Our goal is to grow our tax preparation services firm to become one of the top 20 tax preparation services firms in the United States of America which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in the Saint Paul – Minnesota but also in other cities in the United States of America.
Henry Murdock Tax Consulting, LLP is set to make use of the following marketing and sales strategies to attract clients;
- Introduce our business by sending introductory letters alongside our brochure to corporate organizations, schools, households and key stake holders in Saint Paul and other cities in Minnesota.
- Advertise our tax preparation services business in relevant financial and business related magazines, newspapers, TV stations, and radio station.
- List our tax preparation services business on yellow pages ads (local directories)
- Attend relevant international and local finance and business expos, seminars, and business fairs et al
- Create different packages for different category of clients (start – ups and established corporate organizations) in order to work with their budgets and still deliver quality services to them
- Leverage on the internet to promote our tax preparation services business
- Engage direct marketing approach
- Encourage word of mouth marketing from loyal and satisfied clients.
Sources of Income
Henry Murdock Tax Consulting, LLP is established with the aim of maximizing profits in the tax preparation services cum financial consulting services industry and we are going to go all the way to ensure that we do all it takes to attract clients on a regular basis and sign retainer – ship with most of our clients.
Henry Murdock Tax Consulting, LLP will generate income by offering the following tax preparation cum tax consulting services for individuals, households, start – ups, NGOs and for corporate organizations;
- Provide income tax compilation services
- Provide income tax return preparation services
- Provide basic tax preparation services
- Provide standard tax preparation services
- Provide full-service tax preparation services
- Provide tax-related financial products
- Provide other tax return preparation services
- Other financial consulting and advisory related services
One thing is certain, there would always be individuals, households, mom and pop shops, start – ups, NGOs and corporate organizations who would need the services of professional tax preparation services providers.
We are well positioned to take on the available market in Saint Paul – Minnesota and other key cities in the United States of America and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base beyond Saint Paul to other cities in Minnesota and other states in the United States.
We have been able to critically examine the tax preparation services cum financial consulting market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to startups in Saint Paul – Minnesota.
Below is the sales projection for Henry Murdock Tax Consulting, LLP, it is based on the location of our business and the wide range of tax preparation services that we will be offering;
- First Fiscal Year-: $150,000
- Second Fiscal Year-: $350,000
- Third Fiscal Year-: $750,000
N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and natural disasters within the period stated above. There won’t be any major competitor offering same additional services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Our Pricing Strategy
Hourly billing for tax preparation services cum financial consulting services is a long – time tradition in the industry. However, for some types of tax preparation services cum financial consultancy services, flat fees make more sense because they allow clients to better predict consultancy costs.
As a result of this, Henry Murdock Tax Consulting, LLP will charge our clients a flat fee for many basic services such as tax preparation services and business advisory services and tax consulting et al.
At Henry Murdock Tax Consulting, LLP we will keep our fees below the average market rate for all of our clients by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special discounted rates to individuals, households, start – ups, nonprofits, cooperatives, and small social enterprises.
We are aware that there are some clients that would need regular access to tax consultancy and advisory services and assistance, we will offer flat rate for such services that will be tailored to take care of such clients’ needs.
- Payment Options
At Henry Murdock Tax Consulting, LLP our payment policy will be all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that we will make available to our clients;
- Payment by via bank transfer
- Payment via online bank transfer
- Payment via check
- Payment via bank draft
- Payment with cash
In view of the above, we have chosen banking platforms that will help us achieve our plans with little or no itches. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our service charge.
Tax Preparation Service Business Plan – Publicity and Advertising Strategy
We are aware of the importance of adequately publicizing a start – up business like ours hence we have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.
We are set to take the tax preparation services cum financial consulting services industry by storm which is why we have made provisions for effective publicity and advertisement of our travels and tours agencies. Below are the platforms we intend to leverage on to promote and advertise Henry Murdock Tax Consulting, LLP;
- Place adverts on both print (community based newspapers and magazines) and electronic media platforms
- Sponsor relevant community based events / programs
- Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our brand
- Install our Bill Boards on strategic locations all around Saint Paul – Minnesota.
- Engage in road show from time to time in target neighborhood in and around Saint Paul – Minnesota
- Distribute our fliers and handbills in target areas in and around Saint Paul – Minnesota
- Ensure that all our workers wear our branded shirts and all our vehicles are well branded with our company’s logo et al.
Tax Preparation Service Business Plan – Financial Projections and Costing
Starting a tax preparation services firm can be cost effective; this is so because on the average, you are not expected to acquire expensive machines and equipment. Basically what you should be concerned about is the amount needed to secure a standard office facility in a good and busy business district, the amount needed to furniture and equip the office, the amount to purchase the required tax and accounting software applications, the amount needed to pay bills, promote the business and obtain the appropriate business license and certifications.
This is the financial projection and costing for starting Henry Murdock Tax Consulting, LLP;
- The Total Fee for incorporating the Business in the United States of America – $750.
- The budget for basic insurance policy covers, permits and business license – $2,500
- The total amount needed to acquire a suitable Office facility in a business district 6 months (Re – Construction of the facility inclusive) – $40,000.
- The Cost for equipping the office (computers, software applications, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $5,000
- The cost for purchase of the required software applications (CRM software, Tax, Accounting and Bookkeeping software and Payroll software et al) – $10,500
- The Cost of Launching your official Website – $600
- The budget for paying at least three employees for 3 months plus utility bills – $10,000
- Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
- Miscellaneous: $1,000
Going by the report from the market research and feasibility studies conducted, we will need over one hundred and fifty thousand (150,000) U.S. dollars to successfully set – up a medium scale but standard tax preparation services firm in the United States of America.
Generating Funding / Startup Capital for Henry Murdock Tax Consulting, LLP
Henry Murdock Tax Consulting, LLP is a business that will be owned and managed by Henry Murdock and his business partner for many years Lucy Kent. They are the sole financial of the firm, but may likely welcome partners later which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources.
These are the areas we intend generating our start – up capital;
- Generate part of the start – up capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from my Bank
N.B: We have been able to generate about $50,000 (Personal savings $40,000 and soft loan from family members $10,000) and we are at the final stages of obtaining a loan facility of $100,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
TAX PREPARATION BUSINESS GROWTH: Sustainability and Expansion Strategy
The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.
One of our major goals of starting Henry Murdock Tax Consulting, LLP is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to offer our tax preparation services cum tax consulting services a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.
Henry Murdock Tax Consulting, LLP will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner of our business strategy.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more as determined by the board of the organization. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
Check List / Milestone
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts various banks in the United States: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of All form of Insurance for the Business: Completed
- Conducting Feasibility Studies: Completed
- Securing a standard office facility (renovation inclusive): Completed
- Generating part of the start – up capital from the founder: Completed
- Applications for Loan from our Bankers: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents:In Progress
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of the Needed software applications, furniture, office equipment, electronic appliances and facility facelift: In Progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business (Business PR): In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with vendors and key players in the industry: In Progress