How a chance reunion at a SARS office turned into a thriving business
Thinking of starting an accounting firm? Why not join forces with another accountant? Thanks to a chance meeting, Rajesh Nathoo and Shamit Bansi began to collaborate. Ten years and many clients later, they’re opening a new branch.
Rajesh Nathoo stands next to Shamit Bansi. The two established The Tax Company which is celebrating its tenth anniversary this year and is opening a new branch.
Shamit Bansi and Rajesh Nathoo flank either side of their staff at The Tax Company.
If it wasn’t for a SARS queue, Rajesh Nathoo and Shamit Bansi might never have ended up in business together. It had been two years since they had last seen each other, having previously worked at the same firm.
Since then, they’d separately decided to strike out on their own, and their client work brought them to the same SARS branch – albeit in separate queues. Later that day, Shamit called Rajesh.
“Then we said, okay, but why don’t we collaborate?” explains Shamit.
The collaboration led to their Stanger-based firm, The Tax Company.
Teamwork makes the dream work
“Working together helps us share the burden of stress,” says Shamit. “You know, all the client’s problems become our problems. But now you have each other to bounce the problems off. I think it’s a critical factor in making us successful because a lot of guys who get into practice find it’s just too stressful being on your own.”
“For example, I had one or two clients before we officially started this collaboration of practice. I remember I lost the first client that we ever had, and it became emotional,” recalls Shamit. “And when I chatted to Rajesh about it, he said,’ Yeah, well, you know, we can get another client tomorrow – it’s fine.”
Rajesh and Shamit found that their differing traits and approaches benefit clients.
“When giving clients advice and looking at the pros and cons, maybe I’m looking at something a bit too risky, but Shamit might find a loophole to mitigate the risk,” says Rajesh. “I think that’s priceless and what's made us so successful over the years – the client has two people to bounce ideas off of.”
How to avoid falling out with your business partner
“To be honest, I think we’ve never had any conflict between us,” says Rajesh.
They put this down to mutual respect and figuring out their working dynamic earlier – while working at the same firm.
“We had an understanding about the theme and ethos of how we worked since before we ever dreamt that we would work together,” explains Shamit. “I think the bottom line is that it’s the respect that’s there. I think the respect outweighs the possibility of a situation becoming untenable.”
In the interview, this respect was apparent. Shamit, who is Durban based and isn’t at the Stanger office, wanted to emphasise Rajesh's work as managing partner.
“He’s ensured the smooth operations of the clientele that walk in, the appointments, the back-to-back meetings, the staff management and all those sort of things.”
Neither Rome nor an accounting firm is built in a day
Rajesh and Shamit made time to speak to Accounting Weekly in between looking at rental real estate in Durban and discussing their expansion plans for a second branch.
This, in the same week as the USD/ZAR exchange rate neared R20, and despite seeing some of their clients close due to looting in the last few years.
“I think one of the themes that runs between us is that we’re not here just here for today,” says Shamit. “When we look at business, we look at, you know, the enduring aspect of business. We look at the longevity of the entire deal.”
The expansion will include new overheads and risks, but this is the price of a chance at further success.
“We don’t want to just set up shop and see how it goes for a month or two. You have to be patient. And I think as accountants, we have learned in our profession to be patient.
