The initial steps required to start your firm differ from the strategic moves to grow your business. In the beginning, you handled everything from sales to marketing to client services. The growth phase, however, requires a different skill set and mindset.
If you want to rise as an industry leader, knowing how to grow your business means you must think and act differently than the average firm owner. The top one percent of high-growth firms approach business strategy, marketing, hiring, technology, and even company culture in innovative ways that set them apart.
After studying the fastest-growing accounting firms, I’ve identified seven insights and strategies that any firm can learn from and implement.
But first, let's identify the traps firm owners commonly fall into:
The top one percent don't wait for things to happen—they make them happen. Be proactive about building a firm that can handle expansion.
These winning moves apply to your firm:
Successful firm owners who know how to scale a business opt for differentiation instead of conformity. Although perfection, doubts, and fears may occur, they don’t allow them to delay implementation.
Rather than worry about losing clients, seek opportunities to advance your firm. Yes, growth has some calculated risks. However, strategic planning accelerates growth.
What would advance your firm that you haven’t implemented yet?
Hard work is important, but it’s not the singular key to success. Otherwise, every tax preparer who worked a 70-hour week would be rich at the end of tax season.
The CEOs of leading firms realize the power of leverage. Staff perform the day-to-day work, freeing up time for firm owners to focus on high-value activities like business development and leadership.
What growth opportunities would you pursue if you had more time?
Do you work to live or live to work?
Here’s what I mean…
If you want to grow your business, connecting your income to hours worked limits your earning potential. When your calendar is maxed out, so is your revenue.
Cutting-edge firm owners want their money to work for them. Strategic pricing, where fees are not based on time, rewards efficiency and speed. Profit margins grow when you charge for value instead of time.
What strategic investment would increase your firm’s profit margin?
Average firms passively wait for clients to walk in, relying on chance encounters and referrals. However, organic growth has potential risks. This contributes to inconsistent growth, missed opportunities, and stagnation.
Predictable growth, on the other hand, focuses on clients' needs and priorities. By tailoring your offerings to matters that resonate with them, you can chart a steady course for your firm's future.
Strategically target specific industries or sectors that align with your firm's expertise and strengths. By specializing, your firm becomes the go-to provider for those specific services. This attracts quality clients who perfectly match your expertise.
What two business development activities will you consistently commit to?
Technology—is it friend or foe?
Complacency and resistance to change stall your firm’s growth. As technology continues to advance, many day-to-day tasks can now be automated. Leading firms are doubling down on AI and software to power their tech stacks.
Between cloud computing, process automation, AI accounting tools, and more, technology can help you handle higher volumes of clients without excessive staff growth.
KPMG uses AI for tax work. With AI, their junior accountants prepare taxes previously reserved for staff with more seniority. In addition, using AI saves the company as much as 15 hours per worker every month.
Evaluate your tech stack. Identifying tools that automate repetitive tasks, enhancing collaboration, and improving client services will help you grow your business.
Numbers and financials are the cornerstone of your services. You regularly review your clients’ financials. However, busy firm owners rarely spend enough time identifying, tracking, and adjusting their numbers.
If you want strategic growth, pay attention to your firm’s numbers. Carve time out to review key metrics regularly, analyze performance, and adapt your firm’s strategies based on those insights.
Identify three key performance indicators (KPIs) that will help you make informed decisions about your business.
All accounting firms offer similar core services.
Check out a couple of random accounting websites. You’ll notice that many of these sites focus on the various functions and tasks they offer. Nothing differentiates one firm from the next.
The top one percent stand out by outlining their signature system. Think of a signature system as your specialized approach to delivering accounting services. Instead of discussing the tasks, it defines a step-by-step approach that is benefit-driven.
Consider how this strategic framework can set your firm apart. By the way, a systematized process appeals to high-quality clients. So rather than discussing tasks, educate clients about the possible outcomes.
Every firm, from solo to the Big 4, possesses a signature system.
PwC created its Business Transformation System. This appeals to businesses that need to adapt in order to remain relevant.
Your answers start to reveal your firm’s signature system.
Strategic growth is a long-term plan. Top-performing accounting firms seeking a competitive advantage consistently adapt and revise their plans. Success requires commitment, steady progress, and the ability to embrace change.
Consider the top one percent of firms as inspiration for your own firm’s growth. Start by adopting one or two of their strategies. Routinely invest in ongoing learning, refine your processes, and prioritize client communication. These steps, combined with your dedication, will make your firm a magnet for businesses seeking proactive, client-centered accounting services.
Loren Fogelman, founder of Business Success Solution, shows accounting professionals how to strategically advance their firm’s growth. For more free educational resources for accounting professionals from Loren, visit BusinessSuccessSolution.com.