SASOS CPAs, LLA is a start-up business that is expected to make good profits. The company’s end of year revenue is expected to reach around three hundred and seventy thousand dollars. Most of this revenue is expected to come from business conducted with non-profit organizations. The company is solely an accounting firm. This means that its diversification is mostly limited. SASOS CPAs, LLA targets even small organizations and individuals. These two groups do not usually have access to personal or fulltime accountants. The company has to rely on leased office space and this translates into a start up as well as a recurring cost. The company’s office does not require a lot of furniture. Three chairs and desks are to be mixed with other aesthetics to constitute a presentable office. The firms’ operations will mostly rely on up to date software programs. Initially, the business will rely on a staff of three permanent employees. The amount of invested startup capital is expected to be $5,262.06.
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The location of this company will be Baltimore, Maryland. The market potential of this region is quite promising. This is because SASOS CPAs targets individuals and companies alike. The number of business organizations coming up in the Maryland area is quite high. In addition, small businesses like cafes and convenience stores may enlist the services of this company. This is mostly due to the fact that the company’s charges are quite standard as compared to the usual exorbitant costs associated with accounting.
Currently, accounting services only peak during a few months a year. This makes it hard for the business to maximize its business potential. This is because the other aspects of the company’s business are less abundant and more competitive. Moreover, most clients prefer to use more established and reputable firms for their bookkeeping and financial statement preparation. This means it will take time for SASOS CPAs to amass clients from these categories.
The Company’s expected revenue margins are quite realistic. Audit jobs are expected to rein in most revenue with tax preparations coming in second. This target can be achieved. However, getting audit clients in the first few years is a big challenge. Most companies have long-term auditors and it is not easy for them to switch such services. Achieving the targeted revenue from audit-based services depends on the company’s public relations policy. The company needs to cushion this by ensuring that it reaches its target when it comes to tax preparation services. Another way to cover for this misgiving is by targeting smaller businesses and individuals.
Reliance on basic software programs may also prove to be a challenge for SASOS CPAs. This is because most of the targeted clients are conversant with such programs. This fact may make such potential clients to dismiss the company as a “college startup”. For the company to be profitable, it should try to stay abreast technology wise.
The company faces stiff competition from other accounting firms both in Maryland and across the country. However, economic predictions show that Maryland is quite viable economically. To deal with this competition, the company may have to increase its advertising budget as well as diversify its advertising platform.
The company’s potential for making profit is a reality. Statistically, most companies fail within the first two years. SASOS CPAs has cushioned this by ensuring that the company has a saved up income. Its location is also quite favorable. The company has a real potential for making profit. However, this will depend on the consistency of the owner and the success of its advertising methods.