4 Ways To Grow Your Practice – Which Way Do You Choose
What’s the number one reason most accountancy practices don’t grow as much as they’d like?
– Not enough demand? Nope
– Lack of marketing? Nope (although this would definitely help!)
– Too much competition? Nope
The number one reason they don’t grow, is because they don’t have a clear plan or direction.
You see, without a clear plan or direction for growth in place you’re:
– Always on the lookout for ‘one more’ client
– Fighting hard throughout the year just to ‘stand still’
And I know how this can you make you feel…
Low self-worth and feeling like you’ve not achieved anything.
So how could it be different? What if you did have a clear plan and direction for growth in place?
– You wouldn’t have any worries about new clients
– You would be fighting hard and more importantly moving forwards
And the result of this? You’re motivated. You’re empowered. You feel as though you have really achieved something.
The 4 Quadrants Of Growth
So there’re 4 ways I think you can grow your practice, and each one of these represents a quadrant of growth.
And these growth quadrants are on an axis.
Where vertically you have ‘No clear plan/direction’ up to ‘Clear plan/direction’
And horizontally you have ‘Inorganic growth’ through to ‘Organic growth’.
Quadrant 1 – Struggle
The first quadrant is struggle.
This is where you choose to grow organically, without any clear plans or direction for growth in place.
There’s nothing written down, there’re no targets.
You go from day to day, week to week, hoping for growth but not a lot happens.
And this is where I think a lot of accountancy practices find themselves – in the struggle quadrant.
Quadrant 2 – Comfort
The second quadrant is comfort.
This is where you choose to grow organically still, but this time you do have clear plans for growth in place and you do have a clear direction.
You might have a written down tactical marketing plan that you hold your team accountable to.
You might have other growth targets written down that you track regularly e.g. number of referrals.
The key here is that you’re comfortable. You’re comfortable with how you’re growing, you’re comfortable that you’ll meet your practice goals and most importantly you’re growing at a comfortable rate.
Quadrant 3 – Chaos
The third quadrant is chaos.
This is where you choose to grow inorganically (i.e. by mergers or acquisitions) but you don’t have any clear plans or direction for this in place.
The reason this is chaos is because everything happens too fast for you.
You won’t have the systems, team or processes in place to cope with this new level of work and everything can become very chaotic.
Quadrant 4 – Accelerate
The fourth quadrant is accelerate.
This is where you choose to grow inorganically and you do have clear plans and direction for this growth in place.
What happens here is that suddenly you have more fees, more cash in the bank, and added expertise of any new personnel you’ve taken on via merger. And ultimately this will accelerate your growth.
Which Quadrant Are You Currently In?
Ask yourself – which quadrant are you currently growing in?
My recommendation is that you focus on developing a clear plan and direction for organic growth first.
This is like learning to ride a bicycle. Once you know how to do it, it’s easy to start focusing on inorganic growth.
But the key to remember is that regardless of which way you choose (organic or inorganic), have a clear plan and direction for that growth is crucial if you want to see success.