Who Has Time to Market My Firm?
While most accountants want to grow their accounting practice so their practice is worth more when they decide to retire, they typically lack the time, skills and desire needed to grow aggressively.
- Lack the Time – Most accountants get sucked into the operational side (back end) of their practice by staff and demanding clients. We all know that the squeaky wheel gets greased. As a result, accountants typically lack the time to aggressively market and generate enough leads.
- Skills – Let’s face it, accountants are technically proficient but not marketing savvy. The road to becoming proficient at accounting and tax has nothing to do with lead generation, reputation management, and branding.
- Desire – And worst, most accountants simply don’t have the desire to proactively market their own practice. They enjoy operating in a consultative manner but hate marketing.
Why Is Outsourced Marketing growing within the accounting industry?
For most accountants, the market value of their accounting practice is the most important component of their retirement plan. That’s right, the value of their accounting practice on the open market is the linchpin to how prosperous their retirement years will be.
Here are some of the other reasons why more accounting firms are outsourcing their marketing:
- Hiring marketing people is expensive. A competent marketer commands a six figure compensation package which is not feasible for most accounting firms.
- Partnering with marketing experts yields better results because they have much more experience testing which methodologies work, and which are worthless. This eliminates the need to throw spaghetti up against the wall and test everything under the sun. Savvy accountants would rather use a proven system to grow quicker.
- By partnering with marketing gurus, my practice will become easier to sell, more profitable and worth a higher multiple. It’s not about doing more of the same thing, it’s about improving our profit margins, hourly realization rates and obtaining a better balanced lifestyle.
- Hiring a marketing firm provides me with access to several different experts to better avoid problems and be more efficient with my time.
Why Do Accounting Firms Stick with Outsourced Marketing?
The business model for outsourced marketing within the accounting industry works. And because it works, accountants are now using outsourced marketing for 5-15 years to develop practices that are worth more on the open market, transition the practice from a job into a business, and make more money.
Said another way, the average accounting practice is typically worth 1.2 – 1.3 times gross revenues. And the cost to acquire $100,000 in revenues is approximately 0.5 – 0.6 times gross revenues, sometimes lower. Essentially, outsourced marketing enables savvy accountants to acquire new business at a 50-70% discount to the market value. This gap between the cost to acquire and sell has motivated many accountants to continue enhance their retirement nest egg for 5-15 years.
And if the practice operates at higher profit margins, then the multiple for this practice can be 1.3 – 1.7 times gross revenues because the profitability is higher. That’s right, a practice that operates at profit margins of 50-70% will command a higher multiple than a 30% profit margin accounting practice. The math is simple.
Build Your Firm’s Outsourced Marketing Program
Build Your Firm is the leader within the accounting industry for outsourced marketing and lead generation because our system is more effective, sustainable, and makes your accounting practice worth more on the open market. And, it works with a wider array of accounting practices.
The core components of the program provide:
- Training – At the onset, BYF’s program provides training on marketing, practice management and selling effectiveness.
- Coaching – Throughout the program, BYF’s is your coach and partner through the myriad of business challenges.
- Tangible Results – Our program is bottom-line focused. If the results are attained, we both will want to continue for 5-15 years. If the results are below expectations, we both will want to end the relationship. This win/win approach is why over 75% of firms continue beyond the initial program duration.
And like any professional, our wisdom and expertise gets better over time.
Million Dollar Example
Recently, we had an accounting client start from scratch and then grew to $1 million dollars in six years. And while on the surface that may sound hard to believe, this person managed to do with taking 8-10 weeks of vacation each summer. My gut instinct is that the next $1 million will be attained in less than four years.
If you are ready to turn up the volume on building your accounting practice, consider outsourcing your marketing for Build Your Firm. Let more by watching what accountants around the country are saying.