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Enoch Yiu

Most accounting students dream of having their business cards emblazoned with the  names of international firms such as PricewaterhouseCoopers or Ernst & Young. But this was never a dream of Mabel Chan Mei-bo.

'Ever since I was a little girl, my character has been to create my own firm,' she said.

Sure enough, in 1999, after five years at Big Four firms KPMG and PwC, she spent HK$300,000 of her savings to found Mabel Chan & Co.

'I did not have much money, so I made sure I had the minimum to survive,' she said.

She also made sure to operate at minimal cost, opting for a 300 square foot office in Wan Chai, painting it herself (sky blue, her favourite colour), and furnishing it simply with a computer on a second-hand desk. As the only member of staff, she also did everything herself, from audits to brewing coffee for her handful of clients.

'My first client was referred by a friend. He was happy with my services and told others. This is how we expanded,' Ms Chan said.

Her hard work has been rewarded. By its second year, her firm broke even, and could afford to hire staff. Eight years on, she has several hundred clients, an office of 4,000 square feet, and 20 employees.  According to the Hong Kong Institute of Certified Public Accountants,  of the city's 1,367 number-crunching firms, only 118 have more than 10 staff members.

Now she has time to reward herself with trips several times a year to play golf and enjoy a spa in Thailand, relax at the beach or drive along Australia's glorious Great Ocean Road. The key to success, she said, was a more personalised service and lower charges than those of the Big Four. While she wouldn't disclose her pricing, small firms generally charge 20 to 40 per cent less than the majors.

'The Big Four tend to target giant, listed corporations,  and small and medium-sized companies often do not feel they are the priority,' said Ms Chan. 'But for a small accounting firm like mine, these are our major clients.'

To get the word out, she relies on referrals from clients, and on networking by joining professional associations. She is active in the Hong Kong Institute of Certified Public Accountants, a co-founder of the Women Accountants' Association, and a treasurer of Hong Kong Professionals Advancement Association. 'Participating in social activities helps me meet new friends and lets people know about my firm.'

Of course, having her own firm creates many more hurdles than even the most gruesome balance sheet. Recruiting staff is one of the major challenges because many young graduates prefer to work in Big Four firms.

'But I can still hire someone from the giant accounting firms because my company offers better working hours,' she said.  Unlike when at the big firms, 'I can now sleep eight hours every night.'

Another challenge has been learning to balance her own books. In her days at a Big Four, the year end was eagerly awaited for bonuses or pay rises. But now it is a time to fret. 'Clients generally don't have much work at the year-end so the income is lower, while at the same time I need to pay out more to the staff,' she said.

She has also made mistakes along the way. 'I think my worst decision was that I missed the opportunity to buy my own office after the Sars period, when the property was down,' she said. But she has no regrets about giving up the chase for a partnership at a Big Four firm.

'I am more satisfied to run my own business and I think I  made the right choice. If I was an employee, I would need to worry about being laid off in an economic  downturn. Now, I can survive by cutting costs or expanding my clients,' she said.

Her next target is to find the right business partner with which to expand her company - and to find the right life partner with  whom to get married and maybe have children.

'I am very  focused on my  work but at the same time I also want to have a good family life. I would like to achieve a balance between my work and my family,' Ms Chan said.



Standing on her own two feet