Accountancy practices come in all different shapes and sizes:
- Some have one owner, others have multiple
- Some are based in offices, others are based completely remotely
- Some only have clients locally, others have clients all over the country
And yet all of these practices have one thing in common…
They all have, what I think, is one of the best business models in the world.
But before I explain why, let’s start by looking at some different business models:
- Plumbers: Hopefully we use them less than once a year.
- Web Designers: Use them as and when we need a new website.
- Recruitment Agencies: Depending on whether or not we need to hire.
The list goes on.
Most of these people are always on the hunt for new customers/clients.
However, with your accountancy practice, things are slightly different…
In it’s simplest form, all you need to do is find clients, treat them exceptionally well, and typically (unless you mess up or they die), they will stay with you year after year.
There’s not many other business models that have it that easy!
Plus, every single one of your clients have a legal/statutory need for your services:
- They need to submit accounts to CH
- They have to pay their staff
- They need to pay (and hopefully minimise) their taxes
Sure, these compliance services are becoming automated and slightly commoditised with advances in technology etc, but they’re still important to get right.
These are the jobs that recur year after year, and when you get your pricing and operational efficiency perfected, they provide a healthy recurring revenue for your practice.
But, it doesn’t end there…
These basic recurring services are just one side of the coin.
They are what I like to call the ‘foot in the door’.
And that’s because they put you in a very fortunate position, the position of a ‘trusted advisor’.
Someone who is trusted implicitly by their clients to look after their financial affairs.
And it’s from this trust that you can offer a much wider range of additional services to help them with their business and financial goals.
These could be things like:
- Forecasting & Budgets
- Goal-setting and accountability
- Financial advisory services
Now if that’s not one of the best business models in the world, then I don’t know what is!
So, if you’re a practice owner, and you currently feel like your business model isn’t one of the best in the world, then ask yourself, “what needs to change?”
You have a huge opportunity here to not only build an incredibly profitable business that will provide for yourself and your family, but also to help your clients do exactly the same thing for theirs.