Of the 44,000 CPA firms in the nation approximately 30,000 are sole proprietors. Of the remaining 14,000 practices only a small percentage generate more than $2,000,000 in revenue.
The longevity for most of these remaining firms need not be short-lived. Few of the Top 100 firms from 20 years ago are still here today. What happened? Simple, the organizations that are still here today built a sustainable brand that drove their organic growth.
Your organization will ultimately suffer without healthy, profitable growth on your top and bottom lines. Consistent organic growth is built on a sustainable brand. The following five key elements will help you build a sustainable brand.
1. Invest in your business
Building a sustainable brand requires you to invest in your business. CPA firms often can be short sighted when it comes to making investments in hiring, technology, marketing, operational efficiencies and more because they can’t always see an immediate return on their investment. Sustainable brands prioritize the business above individual needs and preferences of the owner(s). Ironically, this usually ends up rewarding the shareholders handsomely in the end.
2. Execute on a strategy & vision
Sustainable brands have a clear vision and strategy. They know who they are and more importantly, who they are not. Further they are focused on achieving their goals. They do this by executing on the strategies that will get them there. By communicating their strategies and goals, management rewards team members who execute and deliver on the mission.
3. Product/Service Mix
Sustainable CPA firm brands don’t remain stationary. They constantly evaluate their product and service mix. These firms provide the services their markets demand and seek new services that future clients will need. Many of the most profitable firms are niche focused and provide services well outside traditional accounting firms.
4. Develop people
Sustainable CPA firm brands invest in developing their people without regard to the employee’s future tenure with the firm. They invest in formal in-house and external training programs. They invest in coaching and mentoring team members as a core value of their firms.
Sustainable CPA firm brands are led not managed. They have clear leadership in place that focuses firm resources to achieve firm goals. Leadership skill are trained from the team member’s first day until they retire. Leadership is a core tenet in the organization.
Are you and your organization established to achieve these goals?