Eight Pillars for Growing an Accounting Firm
Business growth can be rewarding, challenging and occasionally a bit mystifying. Ironically, the bookkeepers most in need of growth are usually the ones buried in unfulfilling and unprofitable work. They are usually too busy to stop and plan for growth.
The good news is that growth can be easily attained. The bad news is that growth without a plan can be crushing to a business. I created “8 Pillars for Exponential Business Growth” as a structural framework for creating planned and deliberate growth, while minimizing the inevitable growing pains.
What is Growth?
I think it is important to first understand the meaning of “growth,” as it can be different for each business. Growth can generally be achieved by:
- Increasing fees on current services
- Attracting more clients
- Offering more services
- Increasing efficiency to produce more at lower cost
Growth is usually limited by our ability to scale our operations by adding new team members.
I will introduce my 8 Pillars here and go into greater detail on each pillar in subsequent posts:
Pillar 1: Operational Efficiency
Operational efficiency is our first pillar because it is absolutely critical for the success of our future growth. Growth requires that we be able to scale our business. If we grow without first eliminating inefficiency, we will leverage this inefficiency, diluting the positive affects of growth. Pillar 1 focuses on eliminating inefficiency, creating effective operations and building a solid platform for future growth.
Pillar 2: Marketing and Networking
We will have room to add more clients if we first focus on operational efficiency. Marketing is about telling our business story in a compelling way to attract more clients. Our focus will be to create practical steps to market bookkeeping businesses of all sizes.
Pillar 3: Sales
Our marketing efforts should bring us new prospects. The goal of a sales process is to build relationships with prospects and convert them to clients. A good sales process will also encourage current clients to purchase more services from us.
Pillar 4: Niche Development
Targeting a specific niche allows us to be more efficient in our service delivery and marketing efforts. Focus on a niche to improve your results.
Pillar 5: Value Pricing
Eliminate the “billable hour” and focus on the value that you deliver. You will earn more and build stronger client relationships.
Pillar 6: Technology
We are seeing amazing technology being released that offers dramatic improvements to how we approach bookkeeping. Leverage technology to improve all of the pillars.
Pillar 7: Value Added Services
Learn the unique challenges that a particular business niche faces and create additional services. This will increase your revenues and client loyalty.
Pillar 8: Practice Management
Define your business’ vision and create tools to monitor how well you achieve your goals. Pillar 8 allows us to review our business before and after improvements, helping us measure our progress and future potential for growth.
We have covered the 8 Pillars for Exponential Business Growth at a high level. We will go into greater depth on each individual pillar in subsequent posts.