I know what you’re thinking…
“Another b***** expert telling me I need to grow my accountancy practice”
Well before you all start lighting torches, grabbing your pitchforks and marching down to Rudi Jansen HQ, you must know that I’m not a huge fan of hammering home the ‘you must grow’ concept.
That’s because I believe there’s more to running an accountancy practice than just revenue growth.
Whilst many of the members in my coaching & mastermind programme want to see some revenue growth, often what they’re looking for is growth in other areas as well.
You can read more about my thoughts on this in my article ‘What If Growth Isn’t The Goal For Your Accountancy Practice?’.
However, there are still plenty of practice owners out there where revenue growth is the goal. In which case, this article is for you…
So, if revenue growth is your goal, what can you do to grow?
Look, growth isn’t complicated.
All too often people make the idea of growth out to be something big, scary and complex when in fact, it’s actually rather simple.
That’s not to say it doesn’t take a lot of hard work, which it does. It takes a lot of hard work and consistency.
For the remainder of the article I’m going to assume when saying ‘growth’ that we’re talking about revenue growth.
(If you’re interested in profit growth, check out this series of articles – The Accountants Guide to 40%+ Net Profitability – Part 1, The Accountants Guide to 40%+ Net Profitability – Part 2 and The Accountants Guide to 40%+ Profitability – Part 3).
So, what is the basic formula for revenue?
Sales revenue = units sold X sales price
And, for an accountancy practice, this translates (roughly) into…
Revenue = average fee (pricing) X number of clients (marketing) X average number of services per client (sales)
Revenue = pricing X marketing X sales
This means that there are 3 key variables that you can play with in order to increase your revenue:
1. Increase the number of clients you have (marketing)
To increase your revenue, you can work on increasing the number of clients you have on your books.
This essentially comes down to marketing and I completely understand that you might think ‘Rudi, I’m an accountant, not a marketer!’ and believe this is something you can’t improve on.
But, trust me when I say that if you have a proper system and strategy in place, marketing can and will work for you and your accountancy practice and you will be able to increase the number of clients you have.
Start by reading my article on the 5 components of a successful marketing strategy for accountants.
2. Increase your average fee
Increasing your average client fee will of course work to increase your revenue and this essentially comes down to pricing.
I know you might feel fear around raising your prices and you may worry that some of your clients will leave because of fee increases.
This kind of fear among practice owners when it comes to the subject of rising fees is absolutely normal and not uncommon at all. Increasing fees can be disastrous if you go about it in the wrong way.
You need to realise that you’re doing both your clients and yourself a disservice by charging fees that are far too low.
You need to charge what you’re worth and if you lose a few clients, the increase in fees will cover the value of the clients that drop off.
You’ll also then be better placed to attract new, higher paying clients in order to replace those you’ve lost.
3. Increase the average number of services per client
So, you’ve increased your client numbers and average fee.
In this case, the only other variable to change in order to increase revenue is the number of services each of your clients uses.
This is a sales issue. Essentially, you need to sell more services to clients.
“But Rudi – I’m an accountant, I hate selling”
The trick is to not view sales as sales. View it as serving your clients and helping them to overcome their problems and achieve their goas
In order to upsell clients services that they don’t think they need, you need to show them why it is that they do need those services. This means you need to be offering services that are the type of things your clients want and need.
That’s why it’s best to identify a specific type of client you want to work with (e.g. those who are start-ups and looking for quick growth) so that you can tailor your services to suit their individual needs.
You should also take the time to consider whether you’re giving away any work for free in your accountancy practice. You should be charging for everything you do, no matter how small or seemingly insignificant.
So, there you have it…
3 ways to increase revenue growth in your accountancy practice.
So, if growth is your goal, ask yourself these 3 questions:
Do I have a marketing system and strategy that is consistently generating me high quality clients?
Have I increased my fees and am I charging clients what I’m actually worth?
Do I have a process and system in place for selling clients additional services when they need them?
If you can put a tick next to all 3 of these, then you should be in a position where your practice is growing consistently and steadily.
And if there are any ticks missing, this is the place you should start first to drive your growth up.