A few weeks ago I was at my favorite cafe and I bumped into an old client – Glen. I hadn’t seen Glen for a few years since I stopped coaching him.
Within 30 seconds into our conversation he leaned over (he had friends with him and I later found out he did not want them to know) and whispered into my ear…
Glen: I did it.
Me: What did you do?
Glen: I hit $1M profit last year
Me: Awesome, well done. How many client hours did you do?
Glen: Less than 500
Me: Well done – how did you do it?
Glen: I took the strategies and learning’s from the coaching we did and implemented as much as I could.
Me: Did you implement everything?
Glen: No – just the things I thought were important to me
Me: Did you dramatically expand the territory from your current location – he lives in a regional town of 10,000 people.
Glen: No – most of our clients are still in a 2 hour radius of the firm
Me: Do you want to take it to the next level?
Glen: No – we’re are enjoying life. I’ve got the money and the time to do what we want
Me: Congratulations – keep doing what you’re doing. Very proud.
Pretty cool huh?
I was so chuffed that he implemented and got to his goal of earning more so he could improve his lifestyle while still having the time to enjoy it.
I believe that Partners of Accounting firms do not earn enough for the risk they take and how smart they are. I believe that it should be at least $/£/€ 1M profit per partner with the least amount of time on the clock – preferably less than 500 hours per year.
Now it’s easy to prop up profits in an Accounting “Practice” – just get the partners to do more chargeable work. They have the highest charge rates. No no – wrong strategy. You’ll certainly increase the profits but the time to enjoy it reduces. If you’re going to run an Accounting “Business” then the strategy has to be like Glen. You see Glen is following my 30/60/10 rule when it comes to Partner time.
- 30% of his time is client time spent only high end advisory work only
- 60% of his time is in a sales capacity – bringing in new business based on value based fees
- 10% of this time is in a leadership capacity – driving the performance of the business
No low level work. No firm administration work. You see, Glen (and many others I have coached) are very focused on ROMT – return on my time! What is the best use of your time? What are the highest dollar productive payoff activities?
I want you to earn what you’re worth and have the time to enjoy it. You deserve it.
Be like Glen!