AVN points out three mistakes mature accountancy firm owners make
In previous articles I’ve looked at common errors accountants make when starting their firm and how they can get stuck at a certain level, unable to grow capacity or profits.
This time, I want to highlight some of the issues that affect the more mature accountancy firms. That is, firms that are well established, with a solid client base, a recognised brand and healthy cashflow and profits.
You might think that if you’ve achieved all of this, there aren’t any issues to worry about. And on the surface, there aren’t.
But even though things are running smoothly now, you could be storing up problems for the future.
Here are three mistakes that can seriously impact your firm.
One – feeling too comfortable
You are justifiably proud of the business you’ve built up. It’s taken a lot of time and effort so no one could blame you for wanting to sit back and enjoy it. However, feeling too comfortable can make you reluctant to adopt new technologies or innovations.
The world of accountancy is moving fast and relying on systems and methodologies that worked well in the past can leave you vulnerable. You risk being left behind by your competitors. What’s more, this can significantly affect the value of your firm and your retirement package when you want to exit.
You need to start thinking and acting as if these problems are happening right now. Don’t wait until the signs start to show; it might be too late to do anything about it.
Two – not developing the partners of the future
Your clients rightly place a high value on your knowledge and experience. But if you – and other senior partners – are the only ones delivering high value advice and services, you put the future of the firm at risk. Developing your team to be the partners of the future is essential. They must be forward thinking and confident in meeting clients, delivering advisory solutions and embracing change. A team that’s ready to step up when you want to exit ensures continuity.
So start coaching and supporting your team now. At AVN we provide comprehensive training and systems to the accountants we work with to help with this.
Three – owner-centric relationships and ageing client bases
As in the point above, you’ve no doubt built up great relationships with your clients over the years. But if those loyal clients have grown up alongside you, they are likely to be looking to retire at a similar time. Or, as the senior partners in your firm retire or take on reduced roles, your clients may look elsewhere. You need to have a strategy to bring in younger clients and transition existing client relationships to other team members. Otherwise, your firm faces potential revenue losses and an outdated service portfolio.
Review your marketing and referral systems – are you targeting the right kind of clients? Are you using the right channels? Does your website send the right message?
These three mistakes are all related of course and to prevent them becoming a big issue for your firm, you need an overall strategy.
For a more detailed look into this, plus other mistakes common to mature firm owners and how to avoid them, download my free guide – Future-proofing the change-resistant mature firm.
Shane Lukas – AVN for Accountants