If You Want Practice Growth, These Two Words Are Your Keys
You do a million things at work every day, we all do, but there is always just one thing that makes us more money than everything else put together. It is necessary to do many of those millions of things to get the final result, but you need to figure out that one “why” the clients buy from you. What exactly did they feel they “got” from you when you delivered your service? If you know it, you want to make it possible that you deliver that to many more clients. Invariably, there are just two words that are keys to help you multiply your earnings. What are those two words?
How Do They Do It?
We all have our choices when it comes to thirst quenchers. How do Coke and Pepsi manage to sell their products at a price that we don’t even think twice about before buying? Try making the “cola” from start to finish at your home and you will see the difference in costs (and time and efforts).
Your Income is Limited by…
…your ability or otherwise, to produce and deliver your service to MORE clients. We all have only 24 hours a day. How much work can we “produce” ourselves every day? Hence, once we feel we are overwhelmed with work, we look for help. We hire others do to the work for us. Well, nothing new in that.
You Start Earning LESS When You Hire Someone!
Ha! But wait! First – we must make sure the ones we hired can produce the work of the same quality, in the same or less time, and at a total cost that is less than the selling price, to be able to get more profit. So YOU reduce your productive hours to train, check, correct mistakes, review, manage and so on. Welcome to the world of “unbillable hours”. Welcome to the “opportunity cost” calculations.
But That’s Just A Temporary Blip!
Once the person is fully trained, you can start producing at your own full capacity and the one you hired gets in some more. Well, it is indeed just a temporary blip but it is not as simple. You know it. Hiring and training is an endless cycle – for those who WANT to grow their practice. It is NOT a temporary dip in your earnings potential. It is a temporary blip that keeps coming back!
So, What’s The Big Secret to Effective Practice Growth?
You are guaranteed to lose all the shots that you don’t take. And if you do not know these two words, you are guaranteed to lose the true potential of your income growth. You can make more, but not all that IS possible.
Your clients exchange “value” (they get from you) for “money” (they give to you). You need to produce MORE of that value. Your real practice growth comes from your increasing ability to produce and deliver that value to MORE clients.
You absolutely need to “mass replicate” what gets you profit. In the services business, “MASS REPLICABILITY” is a major success factor (or failure factor for that matter). With nearly 95% accounting firms in US never growing beyond 19 employees, “MASS REPLICABILITY” of firm’s revenue generating processes is one of the MAJOR challenges for the accounting profession.
How to Make “MASS REPLICABILITY” Easier?
Create and manage processes, rather than managing them for your people. In other words, have your outcomes from those process steps very well defined and monitor and track those results – not the process steps.
Create “self-learnable” process documentation. As detailed as possible. The real test – if someone comes back to you asking for clarification on “how to” do a process step; it is not a great guide.
Train for mistakes and errors. Tell your people what mistakes and errors can happen in the process, instead of waiting to “catch” their mistakes.
Track your “review” time. Look closely. Are you asking more or less the same questions every time you review the work of your people? Better create a checklist and let them fill up. They will learn how to self-review and the net result is they will do the job better.
Hit for a better fit. If you can hire a staff that is a better fit for the results you expect to replicate, you will reduce the “flab” in “transitioning” the work to them. Define, redefine and then do it again to know what exactly are you looking for in the new resource. Even for a fresher to be hired, look for the “traits” that are a better fit e.g. eye for details, organized etc.
Your Turn Now:
Are your earnings mass replicable WITHOUT you having to do more? Are your earnings mass replicable WITHOUT you having to micro-manage others? Please share your experiences how you mass replicated your success engine or what challenges you face in mass replicating your success.
At Pransform, we specialize in process creation, transition and mass replication. Our resources make it possible for accounting and tax firms like yours to mass replicate success faster, more economically and without you having to manage the mass replication yourself. Dollar to dollar, we help your practice grow faster and more profitable. Contact us now to achieve mass replicability.