In yesterday’s article about the entrepreneurial continuum, we defined an entrepreneur as the tax pro who focuses their business on growth and expansion as the primary goals.
But what exactly does that mean, “growth and expansion”? It’s obviously just a textbook definition, and I’m big on translating the theoretical into the practical.
It’s most common to measure growth by revenue, obviously, but in reality, it’s so much more than that. I think it’s helpful to zoon in just one level, so that you can see the factors that actually drive revenue growth.
Upon such examination, you’ll find things like:
- Growing the number of clients that you serve.
- Expanding the number of services that you offer to clients.
- Geographical expansion.
- Expanding into new niche industries, professions, and sub-cultures.
- Growing your transaction size.
- Growing your staff.
- Expanding your use of technology.
Those are just a few off the top of my head. But it’s important for you to think about, because “growth and expansion” isn’t just about revenue. It’s about using technology and staff to expand raw capacity. It’s about offering the right mix of services to the right mix of clients across the right geographical territory. And of course, it’s about charging the right fees for all these services.
These are all growth factors.
This discussion of taking an entrepreneurial posture with your tax firm dovetails nicely with the first of 12 Big Ideas that I’ll be discussing inside TaxFirms.com during January 2022. This concept is a pretty simple one: There are only three ways in which to increase revenue. They are:
- Increase your number of clients.
- Sell additional services to existing clients.
- Increase your fees.
That’s it. Those are the only three ways to increase revenue. See how they align perfectly with the growth and expansion factors?
If you’re interested in exploring this further, and defining YOUR focus areas for growth and expansion in 2022, I’d like to invite you to join me for a 12-month guided implementation program to help you get your business to where you want it to be. Each month in 2022, we’ll explore one of my 12 Big Ideas for a More Profitable Tax Firm together, along with exercises to help you prepare and execute a plan for growth.
This is the core program that the brand new TaxFirms.com community is built around, and I’m offering it for the ridiculously low price of only $225 per year. If you start your 2-month free trial right now, you’ll get the January sessions at no cost, and then you can decide from there if you’d like to continue or not.
To learn more and reserve your place for the start of the program in January, go here –> https://TaxFirms.com
To your success,