{"id":108013,"date":"2023-01-31t12:30:03","date_gmt":"2023-01-31t17:30:03","guid":{"rendered":"\/\/www.g005e.com\/?p=108013"},"modified":"2024-08-07t23:09:51","modified_gmt":"2024-08-08t03:09:51","slug":"five-reasons-firms-dont-thrive","status":"publish","type":"post","link":"\/\/www.g005e.com\/2023\/01\/31\/five-reasons-firms-dont-thrive\/","title":{"rendered":"five reasons firms don\u2019t thrive"},"content":{"rendered":"<p><strong><a class=\"external\" href=\"https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2016\/03\/seedlingscoins_dollarphotoclub_80598327.jpg\" target=\"_blank\" rel=\"attachment noopener wp-att-47924\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-medium wp-image-47924\" src=\"https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2016\/03\/seedlingscoins_dollarphotoclub_80598327-424x258.jpg\" sizes=\"auto, (max-width: 424px) 100vw, 424px\" srcset=\"https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2016\/03\/seedlingscoins_dollarphotoclub_80598327-424x258.jpg 424w, https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2016\/03\/seedlingscoins_dollarphotoclub_80598327.jpg 300w, https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2016\/03\/seedlingscoins_dollarphotoclub_80598327.jpg 600w, https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2016\/03\/seedlingscoins_dollarphotoclub_80598327-768x467.jpg 768w, https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2016\/03\/seedlingscoins_dollarphotoclub_80598327-849x516.jpg 849w, https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2016\/03\/seedlingscoins_dollarphotoclub_80598327.jpg 1600w\" alt=\"plant seedlings growing out of coin stacks , both increasing in size\" width=\"424\" height=\"258\" \/><\/a>\u2026 and how to solve them.<\/strong><\/p>\n<p><i>by martin bissett<\/i><br \/>\n<a href=\"\/\/www.g005e.com\/shop\/mb-ptp\/\"><i>passport to partnership<\/i><\/a><\/p>\n<p>a big concern in recent years has been how the incoming partners will purchase equity or fund the capital account and exit of a retiring partner.<\/p>\n<blockquote><p><b>more: <\/b><a href=\"\/\/www.g005e.com\/2023\/01\/24\/prioritize-your-prospects\/\">prioritize your prospects<\/a> | <a href=\"\/\/www.g005e.com\/2023\/01\/17\/would-you-make-yourself-a-partner\/\">would you make yourself a partner?<\/a> | <a href=\"\/\/www.g005e.com\/2022\/12\/06\/a-list-is-not-a-pipeline\/\">a list is not a pipeline<\/a> | <a href=\"\/\/www.g005e.com\/2022\/10\/11\/prepare-the-next-generation-now\/\">prepare the next generation now<\/a> | <a href=\"\/\/www.g005e.com\/2022\/09\/14\/are-you-committed-to-your-firm\/\">are you committed to your firm?<\/a> | <a href=\"\/\/www.g005e.com\/2022\/08\/09\/nine-points-to-check-before-hello\/\">nine points to check before hello<\/a> | <a href=\"\/\/www.g005e.com\/2022\/06\/22\/why-clients-struggle-with-growth\/\">why clients struggle with growth<\/a> | <a href=\"\/\/www.g005e.com\/2022\/03\/15\/conversion-what-it-means-for-partners\/\">nine biz-dev metrics for making partner<\/a><br \/>\n<strong><img loading=\"lazy\" decoding=\"async\" class=\"alignleft wp-image-49700 size-full\" src=\"https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2016\/08\/yellow_key_clip_art-e1375897299811-36p-hi-1-e1603911598474.jpg\" alt=\"goprocpa.com\" width=\"39\" height=\"16\" \/><span style=\"color: #b79c00;\">exclusively for pro members. <\/span><\/strong><span style=\"color: #b79c00;\"><a style=\"color: #b79c00;\" href=\"\/\/www.g005e.com\/wp-login.php?redirect_to=\/\/www.g005e.com\/2023\/01\/31\/five-reasons-firms-dont-thrive\/\">log in here<\/a> or <a class=\"external\" style=\"color: #b79c00;\" href=\"http:\/\/goprocpa.com\/\" target=\"_blank\" rel=\"noopener\">2022世界杯足球排名 today<\/a>.<\/span><\/p><\/blockquote>\n<p>much has been written that examines the mathematical complexities of this topic but the bottom line is simple. would-be partners in the age demographic of 28-42 are part of a generation who are already heavily borrowed in the form of credit card debt, mortgage debt and other forms of personal loans.<br \/>\n<!--more--><br \/>\ntheir capacity to borrow in the current economy is extremely limited and it would appear that this will be the environment for the foreseeable future. in turn, banks\u2019 willingness to\u00a0lend has also been largely withdrawn in recent years.<\/p>\n<p>this has produced a cash impasse that has forced partners to consider gifting equity, especially on the basis of time\u00a0served in the firm. there is not scope within this piece to give full examination of best practice within this area except to highlight that 72\u00a0percent\u00a0of partners surveyed highlighted that a senior manager\u2019s ability to \u201cbuy in\u201d to the firm and assume responsibility for funding the retirement plans of exiting partners was among their top three\u00a0concerns about passing their practice on to existing employees.<\/p>\n<p>some partners also connected the tenacity to raise funds with the desired level of ambition that they were looking for from those to whom\u00a0they were to hand the practice over in the future.<\/p>\n<p>those without such ability need not fear, however. the cash principle was underpinned by the following disclaimer from several respondents we spoke to: \u201cclear and regular displays of talent and ambition from our senior staff while salaried will always trump whether they have cash or not in our deliberations.\u201d<\/p>\n<p>so if the potential partner doesn\u2019t have or doesn\u2019t need cash to buy equity in the firm, what do they need? they need to understand what a partner goes through.<\/p>\n<p>have you ever thought about what a day is like in the life of an accounting firm partner?<\/p>\n<p>imagine coming in earlier than everyone, leaving later than everyone and being paid last.<\/p>\n<p>imagine having to deal with<\/p>\n<ul>\n<li>the personnel disputes,<\/li>\n<li>the three who have called in sick when work in progress needs to be freed up,<\/li>\n<li>the major client who advises that they are moving to the competition,<\/li>\n<li>the lack of new business opportunities being created by marketing,<\/li>\n<li>the failure of referral sources to return the favor of introducing work to your firm in the way you have done for them,<\/li>\n<li>the major fallout with another partner over his department\u2019s productivity and apathetic attitude toward billing,<\/li>\n<li>the changes in audit legislation leaving you wondering where the money is coming from over the next few years\u00a0\u2026<\/li>\n<\/ul>\n<p>and it\u2019s not even 9 a.m. yet!<\/p>\n<p>so, when you become a partner and become responsible for handling some or all of these real-life and real-time issues, will you choose to just do what it takes to survive or to thrive?<\/p>\n<p><strong>survive or thrive?<\/strong><\/p>\n<p>there was a particularly good (and rare) piece of television here in the uk called \u201ccall the midwife.\u201d<\/p>\n<p>i hadn\u2019t been aware of the series that preceded it and thought it was a one-off. however, in this episode, two nurses discuss a particular case and one mentions that the death certificate of an individual who slaved away in a workhouse the entire career read \u201ccause of death \u2013 failure to thrive.\u201d<\/p>\n<p>this got me thinking about our practices. are our firms likely to die this year? i most certainly hope not. in life though, we must progress and grow; that\u2019s the point of all this effort after all.<\/p>\n<blockquote><p>so if growth is on our agenda for any given year in terms of fees, clients, number of people employed etc. and we don\u2019t achieve what we had planned to, our firm won\u2019t have died necessarily, but another year of opportunity will have.<\/p><\/blockquote>\n<p>i then thought about all my meetings, numbering into the several thousands, with senior partners, managing partners, partners with particular portfolios, senior managers and practice managers over the years, where they had explained to me why they weren\u2019t seeing the growth in the firm and the level of personal progress and remuneration that they\u2019d wanted. i saw patterns emerge over and over again.<\/p>\n<p>here for you then are the top five reasons (you decide if they are excuses or not) why firms don\u2019t thrive and the recommended solutions.<\/p>\n<p><strong>1. we\u2019re just too busy.<\/strong><\/p>\n<p>this is one i confess to never having fully understood. it is a reason we\u2019d never use in any other central area of life. if something is critical or vital to us, we make time for it. if we are dog lovers, are we too busy to feed or walk the dog? no, because the dog suffers otherwise, their growth\u00a0is harmed and we don\u2019t want that. if our child is bullied in school, do we find the time to go and see the principal to ensure our child\u2019s safety? of course we do. our child suffers otherwise, their growth is harmed and we don\u2019t want that. so presumably, if we don\u2019t want our business to suffer either, we don\u2019t harm growth by claiming to be too busy.<\/p>\n<p>what we\u2019re actually saying is that for some reason, growth and what it takes to achieve it is less important than dealing with what we already have on our plates now. if this is true, i\u2019d advise you to stop hurting yourselves by paying lip service to wanting to grow. if it is not true, then i\u2019d recommend a re-evaluation of why we\u2019re actually in practice and what would really happen if we allowed some client work that\u00a0is both time hungry and profitability impoverished to find a new home and free us up to build something better.<\/p>\n<p>in my experience, if something is important enough to us, there\u2019s no such thing as being too busy to attend to it.<\/p>\n<p><strong>2. we just don\u2019t know how.<\/strong><\/p>\n<p>here\u2019s one that i completely understand. it is so frustrating to recognize the potential, maybe even see in detail what can be achieved within a business, and then have no idea how to go about making it a reality.<\/p>\n<p>the disciplines and skill set required to grow the firm beyond the rate of referred work that comes in, minus annual attrition, is not always natural. it is a time commitment; it\u00a0is uncomfortable. it is however, still necessary. there are so many skills that we don\u2019t stop learning because the first steps are daunting.<\/p>\n<p>in fact, the greatest growth always occurs in the steepest learning curves. however, i\u2019m sure when you studied accountancy and sat your exams as a soon-to-be-qualified accountant, the reality of being in practice was still something of a culture shock regardless.<\/p>\n<p>if \u201cwe just don\u2019t know how\u201d is having a crippling effect in your firm, how about committing to nothing more than \u201cbaby steps\u201d and making sure that progress is achieved little and often to effect great change over the longer term? it\u2019s the commitment that\u2019s the hard part. beat that and we\u2019re making progress already.<\/p>\n<p><strong>3. people just don\u2019t want to change their accountant.<\/strong><\/p>\n<p>well we all know that\u2019s not really true don\u2019t we?<\/p>\n<p>if we think it through, it would indicate that almost no firm would ever grow because people never change.<\/p>\n<p>people change all the time though don\u2019t they?<\/p>\n<p>perhaps a truer revision of that statement would be, \u201cpeople have not seen enough value or reason to change from their accountant to our practice to cancel out the hassle and guilt they feel about changing from a firm they have been with for years, regardless of the quality of service they receive.\u201d<\/p>\n<p>it\u2019s human nature for us to blame other factors or people for things not happening the way we want to. rarely do we point the finger at ourselves and resolve to do something about it.<\/p>\n<p>the reality is, it\u2019s in our hands and if reason number 2 (\u201cwe don\u2019t know how to\u201d) is being addressed, this reason number 3\u00a0vanishes from our vocabulary.<\/p>\n<p>investing in understanding what and why people buy is something that most firms do at some point. implementing what they learn, reviewing and improving their knowledge and ability on a regular basis is what puts them ahead of 95\u00a0percent\u00a0of every firm they will ever come up against to win new work because that failure to implement and improve is where 95 percent of accounting firms fail in their business development efforts.<\/p>\n<p>the summary steps then to ensure businesses change to your firm when they are not referred to you:<\/p>\n<ol>\n<li>understand your prospect and their business.<\/li>\n<li>understand your own value as it relates to them and their business.<\/li>\n<li>link the two according to the prospective client\u2019s goals for being in business.<\/li>\n<li>take objections as encouragement that they care and are considering using your firm.<\/li>\n<li>earn the right to ask for their business by handling each objection patiently. if all objections have been resolved to the client\u2019s satisfaction, there is only one answer they can give.<\/li>\n<\/ol>\n<blockquote><p>where are we taking our firms this year, down the 5\u00a0percent\u00a0road of learning and implementing or the 95 percent road of learning or less?<\/p><\/blockquote>\n<p><strong>4. we don\u2019t want to upset the client\u2019s relationship with us.<\/strong><\/p>\n<p>this reason seems to be trotted out whenever a firm contemplates increasing the level of service to an existing client and getting paid for it. according to the number 3\u00a0reason however, people don\u2019t change their accountants so there\u2019s nothing to lose by approaching them on additional services, right?<\/p>\n<p>because existing client revenue is the bedrock of every firm\u2019s ability to meet their mortgages, overhead, payroll etc. the reticence here is easy to understand.<\/p>\n<p>there are specific, non-threatening ways, though, of increasing a client\u2019s understanding of the value we offer to them and non-pressurized ways of giving them the opportunity to take advantage of this value without them feeling cajoled to buy.<\/p>\n<p>it is that commitment to learning the skill set required to do this that\u00a0will set our practices on our way to increasing existing client revenues, sometimes quite dramatically.<\/p>\n<p>the more we delve into common reasons for things not getting done, the more we understand that the heart of these matters is the central belief system and skill set that the practice\/individual subscribes to. often they are self-limiting beliefs and can only be changed by being challenged.<\/p>\n<p>who in the firm can perform that exercise?<\/p>\n<p><strong>5. we\u2019re unsure and don\u2019t know where or how to begin.<\/strong><\/p>\n<p>bingo.<\/p>\n<p>there\u2019s every reason to be cautious about trying to develop something that requires us to become accomplished in areas that are currently unfamiliar to us, especially with the time investment required.<\/p>\n<p>if this is the case with you and your firm, you\u2019re one of the few who are being true to yourselves and facing reality.<br \/>\nif you\u2019d like to remove the fear of the unknown by doing something other than ignoring what needs to be done,<br \/>\nit really is just a case of taking steps \u201clittle and often\u201d to learn the skill set possessed by an accomplished business developer and try to implement that stage by stage until you feel comfortable, before moving on to the next level of development.<\/p>\n<p>that means that when your website offers services that you can\u2019t\/have never provided, they don\u2019t really differentiate you. the combination of your emotional investment and the true extent of the support and assistance that you can provide is your actual differentiator.<\/p>\n<p>this need to be \u201call things to all businesses\u201d often focuses us\u00a0on telling our potential client everything that we can do and distracts us from building enough rapport and trust to have them feel comfortable in admitting what they actually want us to do.<\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong>\u2026 and how to solve them.<\/strong><br \/>\n<a href=\"\/\/www.g005e.com\/2023\/01\/31\/five-reasons-firms-dont-thrive\/\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-108040\" src=\"\/\/www.g005e.com\/wp-content\/uploads\/2023\/01\/250_bissettcoinstackssprouts.png\" alt=\"\" width=\"250\" height=\"102\" \/><\/a><br \/>\n<i>by martin bissett<\/i><br \/>\n<a href=\"\/\/www.g005e.com\/shop\/mb-ptp\/\"><i>passport to partnership<\/i><\/a><\/p>\n","protected":false},"author":1343,"featured_media":44387,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","footnotes":""},"categories":[2271,3120,3002],"tags":[],"class_list":["post-108013","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-marketing","category-pro-member-exclusive","category-special"],"acf":[],"yoast_head":"<!-- this site is optimized with the yoast seo plugin v24.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>five reasons firms don\u2019t thrive - 卡塔尔世界杯常规比赛时间<\/title>\n<meta name=\"description\" content=\"actionable intelligence for tax, accounting, and financial professionals\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"\/\/www.g005e.com\/2023\/01\/31\/five-reasons-firms-dont-thrive\/\" \/>\n<meta property=\"og:locale\" content=\"en_us\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"five reasons firms don\u2019t thrive - 卡塔尔世界杯常规比赛时间\" \/>\n<meta property=\"og:description\" content=\"actionable intelligence for tax, accounting, and financial professionals\" \/>\n<meta property=\"og:url\" content=\"\/\/www.g005e.com\/2023\/01\/31\/five-reasons-firms-dont-thrive\/\" \/>\n<meta property=\"og:site_name\" content=\"卡塔尔世界杯常规比赛时间\" \/>\n<meta property=\"article:publisher\" 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