A challenge is not a challenge when you do something to overcome it. What are firm owners doing now to overcome their current challenges? [1]
At NY, NJ and CA Accounting shows, Pransform met nearly 600 small firm owners and asked them what they are doing to overcome These Three Challenges. [2]
They told us their proven strategies that are helping them beat competition. You will be stunned by some of these responses….
Challenge # 1: Growth: Top Strategy – Spend More Money!
Recap: “Growth = to be able to earn more net return at the end of the year”.
They are investing more, including their own personal time to do their marketing.
And to make more personal time, they are investing in getting reliable and capable help – either directly (in-house) or indirectly (shared resources). Did someone say, “Money begets money”! One CPA said, “as a firm owner, one must accept that you are actually in sales!”. Someone else said “I realized that I can’t do everything by myself. I am not a superman”.
Challenge # 2: Getting New Clients: Top Strategy – Create New Revenue Channels!
Lets put it as “getting new revenue”.
A small firm owner shared via LinkedIn “…. must also generate enough revenue to substantiate bank loans are not based upon personal credit reports and personal collateral.”
Look what some firm owners are doing to generate new revenue:
Adding new services. These findings are in line with CPATrendlines’ recent report that Tax Industry lost share as more taxpayers efiled. [3] Firms are “partnering” with others – offering their own clients some new choices (more revenue from new services).
Explaining strengths better: The CPE hours are being marketed! They tell business owners “look, I invest 100+ hours every year so that I can do your accounting better. I have more expertise so I can do it better for you.”
Actively networking- reaching out, not waiting for referrals. One growing small firm owner said, “I networked like crazy, at times attending 5 networking meetings per week!”
Challenge # 3: Managing New Expectations of Clients: Top Strategy – Embrace New Tech!
The best response to this challenge is hidden in the tough underlying decision that firm owners have made.
They have moved away, consciously, from their earlier business models. They have moved to technologies that make information available to clients when clients want it. Cloud is on ground in many firms now! As Jody Padar[4] put it succinctly “We are poised and ready to solve the issues facing the “now” generation of clients. We are ready because we are armed with the cloud, social media, and mobile innovations.”
The tough decision was to depreciate out existing investments and re-invest in new technologies to be able to “hang-out where the now-generation clients do”.
FOUR NEW BUSINESS MODELS: And its all leading to NEW business models emerging. Taking a leaf out from the recent insights from one of the foremost thought leaders of Accounting Profession – Rick Telberg of CPATrendlines and integrating these discoveries above, we are coming out with stunning insights on “Four NEW Business Models for Accounting Profession: Minimize Capital Investment, Maximize Leverage! “. And also a new C.E.O. Model…Stay tuned…
1 Challenges faced by small firms 2 These three challenges 3 Tax Industry lost share as more taxpayers efiled. 4 Jody Padar 5 CPATrendlines
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