why ‘steady as she goes’ isn’t enough

it’s not just your firm that suffers – it’s you.

by rob nixon

the traditional growth model is a slow and steady path to moderate success.

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most years an accounting firm grows by revenue. it’s a simple equation. put the charge rates up each year (unfortunately salaries go up as well), accept a few new clients by referral, retain the clients you already have and voila, the revenue increases.

but does the profit increase? typically not.

this reactive “steady as she goes” approach causes two critical issues that hold back the performance of the firm – and ultimately your clients being delighted to deal with you.

1. apathy
2. self-esteem

it is relatively easy to make money in an accounting practice. seriously, you do not have to try that hard to make a decent profit. you know that around 90 percent of revenue will come in each year. you can write the budget on the 90 percent. it’s effectively recurring revenue – you know it’s there, you just have to bring in the work.

• you know that the government will change the rules and you’ll need to introduce something new to your clients.
• you know that some of your clients will get in financial trouble and you’ll need to help them out with a refinance or similar.
• you know you can get away with paying your people 50 percent to 100 percent less than they are worth because everyone does that.
• you know that you will get some new clients by referral – not many, but there will be some.

this reactive, steady as she goes approach is comfortable. however, this comfort zone breeds apathy, it creates laziness and you start to believe that all you are going to get is all you are going to get. your dreams and aspirations all but disappear. and because your life is all about reacting all day every day, your

and because your life is all about reacting all day every day, your self-esteem declines. you start to talk a lot in client meetings, you constantly give the answer to clients in detail (and quickly) and you write long arduous and verbose letters, statements of advice and invoices. you do not listen attentively to people and you start being a bully to others – all are sure-fire signs of low self-esteem.

you are strong when the client comes to you but not so strong when you go to the client with an idea.

if the steady as she goes approach breeds apathy and low self-esteem then the knock-on effect is that you do not help your clients fully and you do not reach your business potential.

you end up with minimal business value, minimal assets or savings in your superannuation or pension program, and you settle for less than you should at retirement.

i want for you to have a big problem. i want you to have a high self-esteem problem. i want for you to enjoy the life you deserve and i want for you to realize your business and personal potential.

to do that you must do something different. your decisions and actions of the past got you the results you achieve today.

another way to look at this is that you are where you are because you choose to be!

will the same strategies of the past realize your success of tomorrow?

posted on july 3, 2017