This article is part of a seven-chapter story following Lucas on their journey to start a Bookkeeping Business.
Inspired by the guide, A Simple Guide to Starting a Bookkeeping Business, the series blends practical steps with storytelling to show what starting a business really feels like.
Deciding on Partners, Setup, and Location
Which Model Makes Money?
Lucas spread three folders across the kitchen table. Home-based. Commercial space. Hybrid. Each one contained different projections, different risks.
“Walk me through it again,” Eva said, pouring coffee.
“Home-based keeps costs minimal. No lease, no commute. But it limits growth.” Lucas tapped the first folder. “Some clients won’t take you seriously without an office address.”
“Commercial?”
“Projects established presence. Room for employees eventually. But the lease alone would eat half our monthly budget.” He pushed the middle folder aside. “Then there’s hybrid.”
Eva picked up the third folder. “Explain hybrid again.”
“Small commercial space for client meetings and focused work. Most operations run online. Best of both worlds, theoretically.”
Harper wandered in, still in pajamas. “Are you opening a store?”
“Sort of,” Lucas said. “A place where I help other stores with their money.”
“Can I have a desk there?”
Eva ruffled Harper’s hair. “Let’s see if there’s even going to be a ‘there’ first.”
Finding the Right Neighborhood
Lucas drove through three commercial districts that morning. The first, downtown, bustled with established firms. Parking cost fifteen dollars an hour. Every other storefront seemed to house an accountant or lawyer.
The second area, near the interstate, felt desolate. Empty lots and for-lease signs dominated. Whatever business had thrived here had moved elsewhere.
The third district caught his attention. Maple Street ran through an area transitioning from industrial to mixed-use. Coffee shops neighbored tech startups. A yoga studio sat beside a tax preparer. Young businesses trying to establish themselves.
He parked and walked four blocks, counting potential clients. Restaurant. Dental practice. Physical therapy clinic. Construction company. Boutique fitness studio. All small enough to need help, successful enough to afford it.
His phone rang. Connor.
“Finding your spot?”
“Maybe. Maple Street area. Feels right.”
“I know it. Did my first big job two blocks from there. Check zoning before you fall in love with anything.”
Proof in the Conversation
Lucas had scheduled five meetings with local business owners. Not to sell anything—just to understand their needs.
The owner of Riverside Dental, Eleanor, agreed to coffee.
“We’ve had three bookkeepers in two years,” she said, stirring sugar into her latte. “First one was cheap but made constant errors. Second was accurate but impossible to reach. Third raised prices twice in six months.”
“What would ideal look like?”
“Someone who answers the phone. Who explains things without condescension. Who doesn’t vanish during tax season when we need them most.”
Lucas took notes. “What do you currently pay?”
“Twelve hundred monthly for basic bookkeeping. Another two thousand quarterly for tax prep.”
The physical therapy clinic told a similar story. The restaurant owner practically begged Lucas to start immediately. By the fifth meeting, a pattern emerged. Demand existed. Trust was the missing ingredient.
Building the Bench
That evening, Lucas started a new list: Support Team.
“I can’t afford employees yet,” he told Eva.
“So don’t hire any.”
“But I need expertise I don’t have. Legal structure. Insurance. IT security.”
Eva looked up from her laptop. “Connor uses contractors for specialized work. Why not build relationships before you need them?”
Lucas grabbed his phone and called Jayden in Oregon.
“Smart question,” Jayden said. “I call it my bench. Lawyer on retainer for contracts and structure. Accountant—ironic, I know—for complex accounts and tax strategy. Insurance broker who actually returns calls. IT consultant for security and backups. Banker who understands small business.”
“That sounds expensive.”
“Less expensive than mistakes. My lawyer costs three hundred monthly on retainer. She’s saved me thousands in bad contracts. IT guy charges hourly but prevented a ransomware attack that would’ve killed my business.”
Lucas started making calls the next day.
The Legal Foundation
Austin, the attorney Connor recommended, had an office six blocks from Maple Street.
“LLC makes sense for your situation,” Austin said, reviewing Lucas’s notes. “Personal asset protection, tax flexibility. I can file everything for a flat fee.”
“What about ongoing needs?”
“Retainer arrangement. Three hundred monthly gives you two hours of consultation, document review, basic contract drafting. Anything beyond that, we discuss first.”
“If you’re not available?”
“My partner covers. Someone always responds within four hours during business days.” Austin handed Lucas a card. “Think of us as your legal department, just not on your payroll.”
Financial Expertise
The accountant, Savannah, worked from a home office but met Lucas at a coffee shop.
“You’ll handle bookkeeping for others but need someone for those clients that want a CPA and to help with those complex accounts that need more than bookkeeping.
“Exactly.”
“I partner with two other CPAs. Coverage is guaranteed.”
“Sounds good, Savannah,” let’s work on percentage of sales based on the client accounts you work on, get back to me with a proposal that will work well for both of us.
The Technology Shield
Nathan had recommended an IT consultant named Chris. His assessment was sobering.
“Bookkeepers are prime targets,” Chris explained, examining Lucas’s laptop. “You’ll have access to multiple clients’ financial data. One breach could destroy your business and theirs.”
“What do I need?”
“Encrypted everything. Automated backups. Security monitoring. Password manager. Separate devices for business and personal.” Chris calculated quickly. “Initial security setup, about two thousand—not including hardware. Monthly monitoring and maintenance, two-fifty.”
“That’s significant.”
“A breach costs infinitely more. One client’s data gets compromised, you’re done. Insurance might cover financial losses, but reputation? That’s irreversible.”
Banking Relationships
The third bank Lucas visited felt different. Instead of a sales pitch, the business banker, James, asked questions.
“What’s your cash flow projection?”
Lucas showed his spreadsheets.
“Conservative. Good. Most new businesses die from optimism.” James studied the numbers. “Start with a business checking and savings. If your SBA package is approved, we can pair a small line from day one; otherwise, after three months of history we can expand it.”
“Why would I need that?”
“Clients pay late. Expenses don’t wait. A line of credit is a shock absorber. Start with fifteen thousand available—you only pay interest on what you use.”
Insurance Reality
The insurance broker Connor suggested operated from a strip mall office.
“Three policies minimum,” Rebecca explained. “General liability for the basics. Professional liability for errors and omissions. Cyber liability for data breaches.”
“Cost?”
“Approximately two hundred fifty monthly for the three core policies at your current limits; it will rise as you grow.”
Lucas winced. Another fixed expense.
“I know it seems like a lot,” Rebecca continued. “But one claim without coverage? You lose the business and possibly your house. Even with an LLC.”
Testing Demand Directly
With his bench assembled, Lucas returned to market research. But this time, he went deeper.
He created a simple flyer: “New bookkeeping service opening soon. Reserve your spot for a free consultation.”
Walking Maple Street, he introduced himself to fifteen business owners. Eight took flyers. Five called within two days.
“I need someone by next quarter,” one restaurant owner said.
“Our current bookkeeper is retiring,” mentioned a boutique owner.
“Can you start Monday?” asked a desperate contractor.
Lucas explained he was still setting up but would begin taking clients in six weeks. Four businesses asked to be first on his list.
The Model Crystallizes
Sunday morning. Lucas had covered the dining room table with maps, lists, and contracts.
“Talk it through,” Eva said.
“Hybrid model. Small office on Maple Street for meetings and focused work. Most services delivered digitally. Clients can choose in-person or remote interaction.”
“Location?”
“The Maple Street Business Center has a six-hundred-square-foot unit. Second floor, so cheaper than street level. Includes utilities and internet. Nine hundred monthly.”
“Seems reasonable.”
“The bench is ready. Lawyer, CA, banker, IT, insurance. All on standby, not payroll.”
Harper looked up from her coloring. “Do they sit on an actual bench?”
Lucas laughed. “Sort of. They wait there until I need them.”
“And demand?” Eva asked.
Lucas showed her the list of interested businesses. “Four committed once I open. Three more probable. Break-even requires about fourteen regular clients.”
“So we’re doing this? Commercial space, hybrid model, support team ready?”
Lucas looked at his research. Months of preparation condensed into this decision. The safe choice would be home-based, minimal risk, slow growth. But safe hadn’t protected him from Morrison’s layoff.
“We’re doing it. Signing the lease tomorrow.”
The First Real Step
Monday morning. Lucas sat across from the property manager, lease documents between them.
“One-year term with option to renew?”
“Correct. First month plus security deposit due at signing.”
Lucas read every line, Austin’s voice in his head about understanding contracts before signing. The space wasn’t perfect. The carpet needed replacing. The walls needed paint. But the bones were solid.
He signed his name. Lucas Stone, Stone Bookkeeping Services.
The property manager handed him keys. “Welcome to the building. When do you plan to open?”
“Six weeks. Maybe sooner.”
Walking to his car, Lucas felt the weight of the keys. Real metal for a real office where he’d build a real business. The bench was assembled. The model was chosen. Demand was proven.
Connor called as Lucas reached his car.
“Heard you signed the lease.”
“News travels.”
“Welcome to the longest, shortest days of your life. Every hour will feel like forever, but months disappear instantly.”
Lucas looked back at the building. Second floor, third window from the left. His office. His future.
“I’m ready,” he said, and for the first time since Morrison, he meant it.
See the guide Lucas used: A Simple Guide to Starting a Bookkeeping Business
You’ve just finished Chapter 2. Next, in Chapter 3, Lucas faces the reality of Costs, Quotes, and Readiness.