smallbusinesszuloo.blogg.se - Growing client base

#GROWING CLIENT BASE FREE#

Nixon also stressed the importance of focusing on a niche market as a way to help identify clients who are the ideal fit.

The client adheres to your firm’s workflow, pays you on time, and does other things that ensure your business runs smoothly.

Consider losing clients who fall below that minimum.

Aim for an 80 percent gross profit minimum in your services.

Consider prioritizing stable, existing businesses over start-ups.

Chances are high for a stable, long-term relationship.

They are ambitious business owners who are hungry for success.

What is an “ A ” client?Īs outlined in a blog post by Rob Nixon, the creator of the coaching program Profitable Partners, criteria for an “A-grade” accounting client include: So, how can firms find clients who are the right fit? Some firms have found success by internally grading their clients and turning to the “A” clients for referrals. And that allows us to handle their needs and the needs of our other clients.” This builds us up, motivates us (we love the clients we have so we want to do anything possible to help them), and energizes us. Because we are only dealing with people whom we like and who like us (and respect our time and processes). Underscoring this point, Micah Fraim, of Roanoke, Va.-based Fraim, Cawley & Company, CPAs, wrote in a blog post, “Despite semi-routinely having to tell a client that things just aren’t working out and that they need to go find help elsewhere (we fired a dozen or so this past tax season), my firm’s revenues continue to rise. Eliminating the frustration is a meaningful benefit to the firm.” “The other … are the ones that contribute to frustration levels.

#GROWING CLIENT BASE FREE#

If 80 percent of your time is spent managing clients who represent 20 percent of your revenue, getting rid of that 20 percent can free up a lot of time that is better spent on better clients,” said Greg Pope, Vice President of Marketing at SurePrep. “The clients you may want to consider firing are the ones that take up too much time. This will also mean less stress for you and your staff. Think of it this way: The time and energy you spend dealing with less than ideal clients is time that can be spent bringing in new, more profitable clients.

In these cases, firms should seriously consider separating from them and seeking new clients who better align with the firm’s goals, business model, and culture. These are clients who have become too much work for the amount of revenue they generate. Too often, firms keep less than ideal clients for the sake of the relationship. In some cases, this may even mean firing some current clients to become stronger. This will go a long way in helping your firm drive greater growth and profitability. When bringing in new clients, it is important to find clients who are the right fit for your firm. Taking the time to understand what criteria make up your ideal clients and using that profile to expand your client base helps you to focus on obtaining the best clients for your practice. Understanding your ideal client baseĪs a guiding principle for many businesses, focusing on “quality over quantity” can help your firm achieve better results.

What’s important to keep in mind, however, is attracting and maintaining the right clients. This includes growth - more clients, more revenue - and bringing more value to the client relationship. These priorities, however, have been modernized to reflect the experiences of working through the pandemic and adapting to the new world. Firms not only need to be ready when the opportunity comes knocking, they must also understand the proactive steps they can take to drive greater growth and profitability through an expanded client base.Īccording to a 2021 study from the Thomson Reuters Institute, tax professionals are looking to return to a more normal working environment and a return to some of the strategic priorities they had in mind pre-pandemic. Leading up to tax time, there are potential clients ranging from individuals to major corporations who may be on the hunt for a new tax preparer. How did your firm fare this year? That is a question firms should consider as they reflect on the tax season.

Each year, tax time is an opportunity to expand your accounting firm’s client base.