When planning the future of your firm you need to remember the following success formula for a thriving Accounting firm….
So what does that mean?
* LPP = Low partner productivity. Make sure partners are doing the right things. 1) High end chargeable work for a low percentage, 2) Nurturing Existing Clients, 3) Leadership – driving performance, new ideas, working ON, sales etc
* GP = Great people. There are no excuses for having anything but the A team on your team. There are that many great people hired in the profession – they just don’t work for you right now. Make it your mission to weed out the non-performers and handbrake team members.
* FP = Fabulous Products. Over and above compliance make sure that your products (services) are really adding value to your clients. After compliance products need to be focussed on helping your clients in 7 critical areas: 1) Growth of revenue or wealth, 2) Profit improvement, 3) Cashflow Improvement, 4) Asset protection, 5) Tax minimisation, 6) Succession or selling, 7) Financial Retirement. Make sure your products are Easy to understand, Easy to buy and Easy to implement.
* M = Marketing. Without marketing your great products are going nowhere. Have a structured marketing plan that develops and promotes a wonderful brand and importantly a marketing plan that delivers new leads / enquiries
* S = Sales. After marketing comes sales. Make sure you follow through and you deliver on your promise. Sales is a skill that any person can lean – if you have the inclination. Sales is about asking the right questions, using effective language and listening.
* VP = Value Pricing. Your existing compliance work has typically been priced on time X rate system. Even if you are pricing upfront this is not value pricing. Value pricing is coming up with a price based on the value that you add to your client. The price needs to be a great ROI for the client and equitable compensation for you. Like sales, it is a learned skill that we can teach you.
* LC = Low costs. With cost control I am not talking about being an absolute ‘tight wad’ where the office facilities / equipment are below par. The main area that Accounting businesses blow out on is far too many people for the revenue they are doing. The old way of thinking would be about $150K per full time equivalent person – all people including partners and administration. We have many firms that are over $300k per FTE and many approaching $500k and $600k per FTE.
* CFM = Cash flow management. Great cashflow in an Accounting business is a function of high profit, low WIP balance and low debtor balance. We have many coaching clients with negative WIP and negative Debtors. It’s your business not your clients remember – you set the rules.
* FE = Fix Everything!
Make this year the year of fixing everything. If you need help go to the links below….
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