CPAs striking out on their own should, like any successful entrepreneur, start with a vision.

Aspiring sole practitioners must imagine the type and caliber of clients they wish to serve. They must invest in the resources that will attract and retain this roster. And then they must adjust expectations - beginning with revenue.

"There is no cash flow until that first client," said Lou Fuoco, founder and managing director of regional accounting and consulting firm The Fuoco Group. "There is a significant amount of risk, so you have to have the fortitude to hold on for a few months or so of preparations before you see dollars. The service business is a negative cash-flow business. You're laying out cash today, hoping you can collect tomorrow."

The realities of walking away from a reliable source of income should not scare burgeoning sole practitioners into taking on just any clientele, however.

"When you're starting out, really think about the type of firm you want to be, the type of clients you want to have," offered Melinda D'Antuono, co-founder, with Douglas Smith, of Princeton, N.J.-based Axiom CPAs & Advisors. "You don't necessarily want to take on every client to get revenue, but make sure it fits with the long-term strategic goals. You have the luxury of shaping the firm you want it to be."

D'Antuono and Smith are still in the shaping phase, having just opened the firm's doors this July after a 30-day push. They also had the unique benefit of bringing over clients from their previous tenure at New Jersey accounting and business advisory firm Bartolomei Pucciarelli, where Smith was a partner for the past 11 years. Even with this advantage, the two emphasize quality over quantity in every facet of their new venture.

"If you're looking for high-quality, larger corporate clients, you want to look like them, act like them," added Smith. "Go with quality stuff - marketing materials and office space. Do it right the first time so you don't have to rebuild the image later."

Of course, those practitioners who signed non-solicitation agreements with their previous employers or otherwise don't have the luxury of a built-in client base should prepare to start with more mom-and-pop clients (unless they have a specialty niche) and expand from there.

Fuoco, who advocates this model of steady growth, knows all about expansion. More than 20 years ago, he opened what would be the precursor to his current practice with a partner. According to Fuoco, that partnership began failing because of a disagreement over the size of clients - his partner came from a Big Four firm and wanted to retain large-revenue business - so Fuoco started his current firm 15 years ago in the basement of his house with one employee.

That employee, Brian Henry, is now a partner, having handled the operational aspects of the firm in those early years while Fuoco "knocked on doors" to drum up business.

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