What If Growth Isn’t The Goal For Your Accountancy Practice?

I think that there’s a common assumption in business that sounds like this…

“Every business owner wants to grow their business.”

And whilst this may be true for lots, it certainly isn’t true for everyone.

What they want instead is to maximize their profitability, take home enough money to look after their family and/or invest into things and reduce the amount of time that they spend working in the business.

But why choose not to grow?

Keeping your accountancy practice smaller can have a number of benefits.

Some of these include:

1. Increased profitability

As a smaller business your overheads are likely to be much less. You can then use your additional profits to pay yourself a better wage, or even invest into other businesses or property.

2. Greater flexibility

Smaller businesses have much more flexibility than bigger businesses. It’s much easier to change direction, develop new offerings and change your processes etc.

3. Better lifestyle

Running a smaller practice will typically allow you more time out of the business to do what you like, providing you have the systems and structures in place to do so. Although I do have clients turning over £2M+ who are also in a position where they have a good amount of time out of the business.

  

4. ‘Small business culture’

Often smaller businesses can have a nice, ‘family’ culture than some of the larger organizations with 30+ staff lose as they grow. And for some people this type of culture is really attractive.

 

5. Personal client service

Keeping your practice smaller might mean you choose to work with a fewer number of clients but offer them a larger variety of services. This means you can tailor the service more for your clients.

6. Lower marketing costs (so even more profits…)

If your practice is stable and growth isn’t the goal, you’re less likely to need to spend big bucks on marketing. Having a few decent referral sources should be sufficient enough to replace any clients that drop off.

Not only that, but by not constantly focusing on growth, your focus can be spent much more on things such as delivering an even greater service to the clients that you have.

source:accoa.co.uk