< PreviousA PROFESSIONAL DEVELOPMENT JOURNAL for the CONSULTING DISCIPLINES 40 MARCH | APRIL 2020 t h e v a l u e e x a m i n e r I hope you enjoyed the January/February interview with Dan Browning. Our interview series continues, with this issue featuring Kim Tavares. Snapshot: My credentials: CVA I’m located in: Newport Beach, CA On my own since: March 2009 Name of my firm: PacWest Accounting My practice sweet spot is: Business valuations in shareholder disputes and divorce Typical size company I deal with: Between $1 million and $40 million in revenue Rod: So the BVFLS profession isn’t exactly a calling. Tell us about your background and how you got to where you are today. Kim: It was definitely not something I was searching for. I was working in the property accounting department for a large fast food company and really wanted to break into public accounting. I answered an ad for a staff accountant position at a midsize CPA firm. My first day on the job, there was some yelling and tissues flying around in the conference room. I thought to myself, “What is going on in there?” Turns out my staff accountant position was in a forensic valuation firm that specialized in divorce/litigation support. I immediately fell in love with a profession that I had no intention of ever being in. And with the help of some amazing partners who took me under their wing, I submerged myself in everything I needed to know in this space—including the fundamentals of business valuation, tracing analysis, and divorce law in California—and worked my way up. Interview: Kimberly Tavares Kimberly Tavares PRACTICE MANAGEMENT Practicing Solo "Practicing Solo” features interviews with our industry’s new and seasoned sole practitioners. If you are itching to join the solo ranks, or striving to be more efficient and effective in your established one-person firm, this column offers you practical advice, steeped in experience from the trenches, that can move you forward. By Rod P. Burkert, CPA, CVA /////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// /////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// A milestone note from Rod: The “Practicing Solo” interview series kicked off in the November/December 2011 issue…when I interviewed myself because no one would volunteer to go first. (You wanna do what?!) Now it’s eight-plus years later, and all of the past interviews are available in the archived digital issues of The Value Examiner. And I’m still at it—this interview marks number 50! Over the years, many practitioners have emailed me to say that this column is their favorite and they read it first when a new issue of TVE comes out. Thank you for the kind words. And while you may feel indebted to me for my dedication, it’s really the interviewees who deserve the credit because they had the courage to put themselves out there by telling me their story. I am proud to call these people my friends and colleagues. To all of you I say, keep going. Last, I hope you will indulge me here as I have included an article after this issue’s interview that has been published in various forms over the years in my newsletter, LinkedIn, Financial Valuation and Litigation Expert, and QuickRead. The message is that important. A PROFESSIONAL DEVELOPMENT JOURNAL for the CONSULTING DISCIPLINES t h e v a l u e e x a m i n e r MARCH | APRIL 2020 41 I left California in 2007 and moved back to my home state of Rhode Island, where I managed the valuation department for a regional CPA firm. It was there that I grew in other areas of valuation besides marital dissolution, and gained experience in the gift/estate and shareholder dispute valuation arenas. The most important thing I learned during this time was that building strong relationships with strategic partners along the way was critical to my success when I decided to go solo. And thus, I moved back to California in 2009 and started my own firm with a toddler and newborn and supportive husband by my side. Rod: What was your first year like, and what would have made it better? Kim: I did not immediately focus only on business valuation. By having knowledge of so many different industries from my valuation work, I leveraged my experience by starting an accounting services firm within my practice in the middle of the Great Recession. I took advantage of companies that laid off full-time accountants and filled their void by providing scalable, “use-as-needed,” outsourced CFO/accounting services. In a nutshell, I provided the accounting department for many different types of businesses. Still taking on a few business valuations a month, I was able to put key employees in place to secure and manage the accounting services piece while I slowly grew my valuation consulting practice. Rod: Did you have a formal (or even semi-formal) business plan? Kim: I was full-on “winging it” when I started. It wasn’t until my seventh year in business that I sat down and thought about the direction I wanted to go. Although I was successful, I did not have a long-term plan. I put together my first written strategic plan in 2016, which really made me think about where I wanted to be and what I wanted to accomplish. I dust it off every year, see how I am doing compared to what I said I would do, and adjust as needed. Rod: How did you first attract clients, and how did that strategy evolve over time? Kim: Building relationships with family law attorneys, financial advisors, and estate attorneys was always important to me. Many of the family law attorneys I had worked with at my previous firm began referring clients to me, and that is how it all began. Rod: What kinds of engagements did you start with? Kim: My first engagements were mostly in the marital dissolution area. And with California being a community property state, there are other consulting opportunities on the forensic accounting side as well as valuation matters. This is also the area where I felt the most comfortable, especially being a solo. Rod: Do you practice in a specialized niche today? Kim: I would say I specialize in the marital dissolution and shareholder dispute areas. Lately, I have been trying to consult in the succession/exit planning area. With my growing accounting services niche, I am often consulting with business owners who want to talk about long-term exit plans, so helping and guiding them has been rewarding. Rod: What has been your best marketing tactic? Kim: Network, network, network—I love to network! I have done it since starting my practice. I did it old school, too, by joining the Newport Beach Chamber of Commerce. I attended many of their events and eventually served as their board CFO. Then I saw a need for more support for women-owned businesses within the chamber and launched a platform called “In*Spire” three years ago. In*Spire is geared towards women in business and includes a speaker series, panel discussions, and roundtable activities. All of this has helped get me out there and has been instrumental in growing my firm. Rod: How do you price your work? Kim: This is a tough one. When I first started out, I knew I was underselling myself. I was on my own and because I didn’t have that big firm under me, I didn’t charge enough. Now when I am pricing out divorce valuations or shareholder disputes involving expert testimony, I typically keep to an hourly fee schedule being charged against a retainer that gets replenished until the case is completed. For non-litigation valuation work, I will typically charge a flat fee or a “fee not to exceed” price after scoping out the work. Rod: How do you differentiate yourself from larger firms? Kim: Ninety percent of the valuations I perform are done by me with very little help from staff. Because of this, my fees are much lower than larger firms since my overhead is lower. I pride myself on customer service, follow-up, and being completely transparent with those I work with.A PROFESSIONAL DEVELOPMENT JOURNAL for the CONSULTING DISCIPLINES 42 MARCH | APRIL 2020 t h e v a l u e e x a m i n e r Rod: Do you work from a home office or an “office” office? Why? Kim: I started out at my kitchen table for the first year, but soon after I decided to get an office. Being a mom of three young children, I like having work/life spaces that separate where I work from where I am mom. Rod: What is your current mobile device? Kim: An iPhone X Max. Rod: Describe your current computer/workstation set up. Kim: I have a desk with dual monitors, and most days I will be working on my desktop computer with my laptop along side of me. If I am working on a big case, you will find me at the large conference room table spread out with documents. Rod: Besides your phone and computer, what apps, gadgets, or tools can’t you work without? Kim: I utilize Harvest for timekeeping and Box for all my document storage. Rod: What do you listen to while you work? Kim: I love music, and my mind focuses best with loud music. I also have CNBC on the TV in the background, which keeps me up to date on current events. But it’s the music that allows me to get work done. Rod: How do you keep track of what you have to do? Kim: I love lists. The first thing I do every morning is make a list of all that needs to get done by the end of the day. I started my own business to be able to attain work/life balance, so making it clear exactly what needs to be done in that window of time really helps. The most satisfying feeling is when I can cross something off the list. Even when I finish something that was not on the list, I write it down just so I can cross it off! Rod: What are your best cost-saving ideas? Kim: I only start on an engagement when I have all the original documents requested. I find it more costly to start on a project without having everything I need and having to pick back up again once additional documents come in. Rod: How about your favorite productivity tip that saves you lots of time? Kim: I use Karbon, a practice management software that prioritizes projects by due date, which is essential with upcoming court dates. It automates tasks and also keeps all communications and status updates in one spot. Rod: Early bird or night owl—what’s your sleep routine? Kim: Early bird. I am the granddaughter of a corn farmer who started every day when most were still sleeping. I worked on the farm from a young age, and the habit of rising early has stayed with me. Rod: Do you have liability insurance? Kim: Yes, McGowan Professional Liability Insurance for Accountants. Rod: Do you have any office/admin staff? Kim: I have a staff that assists me with valuations as well as admin. Rod: Do you have a support group to call on? Kim: I have a great support team. I have maintained my relationships with those who trained me in business valuation, and I lean on them for guidance and reassurance. As many solo practitioners can attest, the biggest challenge is not being able to go down the hall and brainstorm with a colleague. I have also built a great network of fellow NACVA members who I can get help from when needed. Rod: How do you stay technically current with changes in the profession? Kim: I think LinkedIn is a great tool for keeping up with what changes are happening by being connected with experts and leaders in the industry who often post when there are new updates, court cases to pay attention to, and any other important information. I also follow blogs and write-ups by experts within the industry. Rod: What non-BVFLS book have you read most recently or want to get to, and why? Kim: I am currently reading Make your Bed: Little Things That Can Change Your Life…and Maybe the World, by Admiral William McRaven. It is a fantastic book in which McRaven shares ten principles he learned during his Navy Seal training. I also just finished The Book of Joy: Lasting Happiness in a Changing World, by the Dalai Lama and Desmond Tutu—a great book about two spiritual leaders and living a life of joy.A PROFESSIONAL DEVELOPMENT JOURNAL for the CONSULTING DISCIPLINES t h e v a l u e e x a m i n e r MARCH | APRIL 2020 43 Rod: How do you recharge? What do you do when you want to forget about work? Kim: I think recharging is the most important element of success. My recharge is spending time with my family. I really try to unplug and be in the moment when I leave work. I love being a business owner but still being there to pick the kids up from school or attend their events during the day without feeling like I am being judged by other team members or upper management. I also exercise regularly because it helps me reconnect with the world and clear my mind. Rod: What practice areas do you think offer the most promise to someone going solo now? Kim: There is so much opportunity in exit planning. With so many baby boomers retiring, we become instrumental in advising them on the process. It also makes for a longer engagement and opportunities to build on these relationships instead of one-and-done business valuation projects. Building relationships with financial advisors, estate attorneys, and other business professionals is key to getting referrals in this area. Rod: What is the best work/life advice you have ever received? Kim: When I was debating going out on my own, I kept going back and forth with the decision. Someone told me if I wanted to have the best control over work/life balance, I needed to put my feet at the edge of the pool and jump in. It was one of the most difficult decisions I made but I am so happy I jumped. Rod: Finish this sentence: If I knew then what I know now, I would… Kim: I would have focused solely on valuation within my practice right from the beginning. Because I did not have the confidence at first, I felt the need to supplement other areas of service, which denied me the chance to work on what I loved full time. That’s a wrap! Answers have been lightly edited. Do you have a Practicing Solo issue you would like me to address? Email me I work with BVFLS practitioners and firms who have hit a time or income ceiling and want to grow faster and smarter. If you are feeling frustrated by those limitations, email me VE If Kim is working on a big case, you will find her at the large conference room table spread out with documents.A PROFESSIONAL DEVELOPMENT JOURNAL for the CONSULTING DISCIPLINES 44 MARCH | APRIL 2020 t h e v a l u e e x a m i n e r PRACTICE MANAGEMENT Is Practicing Solo a Risk Reduction Strategy? By Rod P. Burkert, CPA, CVA /////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// /////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// As a practice development coach for our industry, I get a ton of questions asking what it’s like to be a sole practitioner and why I chose to be one. Well, I’ve been practicing on my own since July 2000, so I have some insight. And I want to couple these questions with the fact that our profession requires us to assess risk. So, let’s reframe the question as: Is it riskier to be practicing solo or to be part of a firm? Here’s my take, which focuses on just one factor—an honest assessment of your skills. First, you’ll want to listen to this podcast interview1 with Daniel Pink. Among his many credits (aid to Labor Secretary Robert Reich, speechwriter for Vice President Al Gore, six-time New York Times best-selling author), Pink wrote the iconic “Free Agent Nation” article that appeared in the January 1998 issue of Fast Company. His article was teed up for success by Tom Peters’ article, “A Brand Called You,” which appeared five months earlier in the same magazine. Dan’s article also became the genesis for his first book, which is a good read about this subject. With the then-concurrent rise of the internet, I would argue that the Peters and Pink articles really launched the trend of self-employment. I mean, for those who remember, being self-employed back then was often code for “recently laid off or fired—and looking for a job.” Shortly thereafter, being self- employed became a badge of honor. But what Pink’s retrospective interview makes abundantly clear is that, in today’s world, self-employment is primarily a privilege for the talented. Meaning, do you have the BVFLS skills that are in demand? Talents that are valued by our marketplace? If so, you have a choice about being a W-2 employee or a 1099 free agent. If not, you don’t. It’s (almost) that simple. Here’s why, paraphrasing Mr. Pink. If you have valuable skills, why would you want to attach your fortunes to the one employer you work for when you could 1 spread your risk among multiple clients or customers who could hire you? Yes, you’re out there…on your own. But with your in-demand skills, you also likely have the talent, drive, and grit to be successful…on our own. If you don’t have valuable skills…you are in a world of hurt. There is no W-2/1099 choice. You’ll need to stay a W-2 employee to mitigate the risk that you likely wouldn’t survive (long) as a free agent. You’ll need a company to take care of you for as long as it’s willing. Or able. We love to talk about risk—risk management, risk-adjusted returns, holding period risk, risk this, risk that. But it’s always in the context of someone else’s risk…the risk belonging to that ephemeral “subject company” or “subject interest.” What about in the context of your very own personal risk? So here is an acid test to assess your skills. How confident are you—really—in your talents? And do you—really—have the discipline for life-long learning? Then, long term, who do you—really—want to shoulder the risk of your work (gainful employment) and life (retirement plans), yourself or an employer? I’ve had the privilege of interviewing 50 professionals (so far) in my “Practicing Solo” column for The Value Examiner. For what it’s worth, most felt that their only regret about going solo was not pulling the ripcord sooner. Certainly, something to think about. I think the lesson here is to be motivated to continually “sharpen the saw,” as Stephen Covey said. It’s a call to action to make sure you always have skills and talents that are in demand no matter who you work for—yourself or a firm. And if you work for a firm now, you’ll be prepared for a future solo career…just in case. Rod Burkert, CPA, CVA, is a practice development coach who helps overwhelmed BVFLS professionals create more time, money, and freedom in their practices and their lives so they can create the experiences that matter most to them. 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