{"id":85177,"date":"2021-06-22t21:20:17","date_gmt":"2021-06-23t01:20:17","guid":{"rendered":"\/\/www.g005e.com\/?p=85177"},"modified":"2022-12-22t00:42:46","modified_gmt":"2022-12-22t05:42:46","slug":"reasons-to-drop-your-book-of-business","status":"publish","type":"post","link":"\/\/www.g005e.com\/2021\/06\/22\/reasons-to-drop-your-book-of-business\/","title":{"rendered":"why your billings are ruining your firm"},"content":{"rendered":"

\"businessmando you see managing partner as a part-time role? if not, don’t treat it like one.<\/strong><\/p>\n

by ed mendlowitz<\/i>
\nthe 卡塔尔世界杯常规比赛时间 practice doctor<\/a><\/i><\/p>\n

question:<\/strong> about a year ago i became the managing partner of my 50-person, six-partner firm. we gross about $7 million. i still maintain my book of business, which is about $1 million, and have 1,000 chargeable hours.<\/p>\n

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\n\"goprocpa.com\"exclusively for pro members. <\/span><\/strong>log in here<\/a> or 2022世界杯足球排名 today<\/a>.<\/span><\/p><\/blockquote>\n

needless to say, i have been working very hard, about 2,700 total hours, yet my partners are complaining i do not have enough chargeable time and i tend to agree with them. how i can increase my chargeable hours?
\n
\nmy clients are happy and they are all serviced very well. do you have any suggestions?<\/p>\n

answer:<\/strong> i commend you for maintaining the 1,000 chargeable hours, but do not believe it is in the best interests of the firm for you to be a \u201cpart-time\u201d managing partner, which is what you really are for a firm your size.<\/p>\n

here are some comments for you to consider.<\/p>\n

    \n
  1. your practice is a substantial business and needs full-time management. the managing partner is really the ceo of the business. with 50 families depending on the business for their living it is a great responsibility to make sure that the business is sustainable and will grow. and i believe that needs full-time management.<\/li>\n
  2. if you want to maintain your book of business perhaps you should consider hiring a firm administrator similar to a coo (chief operating officer) to assist you and to handle the daily management activities.<\/li>\n
  3. an alternative is for you to divest yourself of the client load. however that could be risky since \u201cequity\u201d in a professional services business vests in the control of clients and those relationships. a suggestion is for the firm to give you a long-term contract, say 10 years, with a substantial payment should your services be terminated beforehand to compensate you for the loss of the client relationships that you gave up when you became the managing partner. the contract should also include a buyout comparable to what it would have been had you not been managing partner but maintained your book of business with attendant growth.<\/li>\n
  4. before anything is done the partners should develop a business plan and strategy to go forward with anticipated benchmarks representing the expected growth. another point to consider is that with minimal growth your firm will likely double in size in 10 to 12 years and you need to evaluate if you have the infrastructure to handle that growth and that size practice, including equipment, technology, marketing, hr including hiring, scheduling, cpe and benefits, finance including billing and collections, cash flow and working capital issues. even now, you are a substantial business and need to operate in that manner.<\/li>\n
  5. with a dedicated managing partner, a businesslike structure will be put in place. this would include exploring ways to grow, type of personnel you will need, office size, location and alternatives, and it structure and whether growth will be organic, through acquisition or sales and marketing efforts. another role of the ceo is to represent the firm at industry conferences and to interact with counterparts in different parts of the country. you become the \u201cface\u201d of the firm. you also end up with one client \u2013 the practice.<\/li>\n
  6. i do not know the dynamics of the practice and how much the partners earn. however, the \u201caverage\u201d revenues per person looks like $140,000. based on industry averages this appears low, giving you room to grow the profitability internally. with dedicated management if this is increased just $10,000 per person it will add $500,000 to the bottom line. this, in and of itself, can provide adequate incentive to start running your practice more as a business and less as a professional services practice.<\/li>\n<\/ol>\n

    the above comments are some things that need to be considered before changing how you manage and do business. they are tied into the anticipated growth developed from the business plan.<\/p>\n

    good luck! this is an exciting undertaking and a substantial new direction for your practice.<\/p>\n","protected":false},"excerpt":{"rendered":"

    \"\/\/www.g005e.com\/2021\/06\/22\/reasons-to-drop-your-book-of-business\/\"<\/a>
    \ndo you see managing partner as a part-time role? if not, don’t treat it like one.<\/strong>
    \nby ed mendlowitz<\/i><\/p>\n

    join ed mendlowitz for exclusive small-firm joint retreats<\/i><\/a><\/span><\/strong><\/p>\n","protected":false},"author":1341,"featured_media":70489,"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":[1363,1908,3120,3002,2266],"tags":[],"class_list":["post-85177","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-management","category-pro-member-exclusive","category-special","category-partner"],"acf":[],"yoast_head":"\nwhy your 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