Empire building

When accountants decide to become self-employed, practice is the most popular route. But for the true entrepreneur this may not create enough of a challenge. Louis Leung Kent-Ning FCCA has been working as a practising accountant since he joined ACCA in 1974. Despite rising to become a partner with BDO Hong Kong and setting up his own Hong Kong accounting practice in 1986, in 1993 he decided to add another string to his bow by establishing a manufacturing operation in the People’s Republic of China. “I now spend half my time in Hong Kong and half my time supervising the operation of my business in China,” he says.

Louis Leung and Partners CPA Ltd now has 20 staff and two partners and services a local client base, while the Dongguan Yongmei garment factory employs 700 workers and boasts an international client base including Asda (part of US giant Wal-Mart) and Woolworth (part of the Kingfisher Group), so Leung is anything but short of challenges.

In addition to running two unrelated businesses, the entrepreneur has to accommodate regional variations in business practice, legislation and regulation, adapt his management style to the differences in structure and scale, as well as overcome some fundamental differences between the people who work with and for him. “The operation in China needs extensive close supervision,” says Leung, to keep things running smoothly and ensure profitability. “The factory is located in the Guangdong province,” he explains, “where the people have a different culture and knowledge to Hong Kong.”

Running both organisations is like holding down two full-time jobs, but Leung is a true entrepreneur and has plans to expand further. “I am setting up a second factory in China doing garment washing and I am also planning to set up professional services in China when the entrance gate is open.” It is impossible not to be impressed by his ambition and vision, or wonder how he manages to achieve so much.

“My accounting qualifications have provided me with a sound financial background, good analysis skills and the management expertise to do business,” he asserts, and his time in practice has given him many valuable insights into running a successful enterprise. But all of this training and experience would have come to nought if he were not dedicated, focused and secure in the support of those close to him. “I work seven days a week, so I really need the support of my family,” he says. “Without this, I could not have worked long hours every week throughout the years.”

Steve Checkley ACCA also started his finance career in practice, and although he is now the managing director of a UK software company, without the time he spent working for a small firm he would not have had the idea for the product on which the business is based. “I think everyone has one good idea in them and this was mine,” he suggests, with misplaced modesty: creating a marketable product and running the business that sells and supports it takes more than just a good idea.

Practice makes perfect

“It took four years to create the product,” says Checkley, who formed Accounts Vision along with three friends who all brought different skills to the business. “I had a good administration background with strong reporting skills,” he says, while his fellow directors excelled in other areas. “All of the members of the team are quite entrepreneurial,” he says, and some are involved in more than one software enterprise.

While they have provided vital skills in areas such as programming, systems and product development, Checkley’s auditing experience has been a boon. “I was used to getting out and about and dealing with lots of different types of people,” he says, which has proved invaluable during the past year, as Accounts Vision has started to develop strategic relationships with other businesses. “Without this experience I think I’d have been a lot less confident about some of the negotiating I’ve been involved in,” he adds.

“Going into business is a bit of a leap in the dark,” says Checkley, but it is an experience he relishes. “I thought about staying in practice and becoming a manager or partner, but it’s not where I wanted to be,” he says, and moving on has helped him to develop professionally and personally. “I have discovered skills and strengths I didn’t know I had and developed others I didn’t know I would need.” Experience has also taught him about the gap between theory and plans and the day-to-day reality.

“In the beginning we put together a single business plan, but we’ve had to work on various scenarios because different funders have different priorities and expectations,” he explains. The way the partners work together has also needed to evolve. “We started out making lots of group decisions,” recalls Checkley, but as time progressed it became apparent that the vision of one person would need to take precedence. “You have to have a leader,” he adds.

Passion

Being the leader has advantages and disadvantages, as Suzianna Wong-Svrcula FCCA has discovered while building her Malaysian business empire. “You must be passionate about your venture,” she says, “because as the owner you have to be the driver.” But this means that you can easily become emotionally attached to the business. “You worry when things are looking down,” she says, “but success can be so satisfying that you could almost scream with happiness.”

After holding senior management roles with a number of large public corporations, Wong-Svrcula opened her first restaurant in 1997 while still employed as a group finance manager with the Berjaya Group Bhd. Three years later she left to focus on her own company, Piccolo Mondo Gastro Sdn Bhd, and six years on she can boast five restaurants, a juice bar, a sports merchant store and the Piccolo Galleria (a small shopping centre).

Although Wong-Svrcula’s accounting qualifications have underpinned all of her business successes, she has needed to develop skills in areas such as human resource management and marketing while working very long hours. She can often be found at the office at 11pm, her mobile phone is switched on 24 hours a day and her staff know that she is available at all times. But sustaining this level of commitment is not easy, particularly when you need to balance your business and family life: Wong-Svrcula is married with two children.

“It is not easy to be in business,” she says, “you have to make sacrifices.” Fortunately, as Piccolo Mondo expands, running the business becomes less time-consuming. “The most difficult time is in the beginning when the business is small,” she reflects. There are no economies of scale so you are the boss, the accountant and the dogsbody, and have to be prepared to handle any task that comes along. “As the business grows you have the luxury of managers, accountants and so on,” adds Wong-Svrcula, “so most problems are resolved before reaching you.”

Some people would see this as an opportunity to sit back and smell the roses, but the consummate entrepreneur has other plans. Piccolo Mondo is currently developing a hotel on the same site as the Piccolo Galleria. “With the hotel coming into play the shopping centre will be upgraded to feature more restaurants, a couple of bars and perhaps a spa centre,” says Wong-Svrcula, so she will not be resting on her laurels any time soon. She adds: “I have to chase my dream.”

Lesley Meall is a writer on business and technology issues.