Re-learning the basics of biz dev.
In today’s uncertain economy, it seems that CPA firms must be especially agile and adaptable to survive. They must be real “learning organizations.” But what are the characteristics of an agile, adaptable, quick-learning CPA firm? And how do you get that way?
We’ve been asking experts throughout the profession, and here’s one answer.
Bob Lewis
Visionary Marketing / PMB Helin Donovan
Here’s what I see as a their path to a “learning organization” that is occurring in many firms today.
One of the main problems CPA firms are encountering is revenue reductions. Factoring out mergers or acquisitions from the calculations, a large number of firms are flat or have experienced negative growth for the first time in a long time, if not ever.
Fee pressures due to the down economy, an accelerated loss of clients due to business closure, plus the natural attrition of clients that occurs have upset a fairly stable growth within the CPA profession. Add in the impact that this same occurrence is happening with the referral partners that historically have fed new business opportunities to firms and a perfect storm of sorts has developed.
The major learning many firms are undergoing is the need to convert more of their partners from production oriented professionals more toward business development thinking partners. The burden of bringing in new business can no longer be left up to the same few rainmakers so all partners need to take selling initiatives or take personal income reductions. The problem is it is difficult for many CPAs to sell especially if their main source of new business in the past has been referrals that were already partially sold when they walked in the door if not already completely sold.
Converting partners into selling-oriented professionals is difficult. Especially since many of the marketing professionals in firms have not been chartered or have direct experience selling themselves. Marketing is vital in helping a firm’s professionals by giving them the tools, image and information to sell, but most are not experienced business developers and finding a quality business development professional for a firm is a rare event.
To complicate the learning process, there are two other factors that come into play:
1. A desire not to rock the boat. Older partners tend not to want to change or create any wave that might rock the boat as it heads in to the retirement pier. They may be content just holding onto what they have and uncomfortable or not in enough pain to want to learn how to sell after all of these years. This can be true with many younger professionals in the firm as well. Being sales minded is not what always comes naturally to all CPAs.
2. Non-equity or low equity partners. An non-equity or low equity partner might view their position as more of a salaried role and not feel compelled to want to seek new clients. Each firm’s compensation structure, bonus incentives and internal mix of professional staff are all variables that can impact each firm differently. For example, a firm that has had to make some cuts might find themselves heavily dependent on the production of a few young partners or senior staff who are left with little to no time to really tackle selling, especially if they are uncomfortable in the role.
Bob Lewis is chief marketing officer at PMB Helin Donovan CPAs and managing partner of Visionary Marketing in Palatine, IL, a firm that assists CPA firms in lead generation.
One Response to “Bob Lewis: The Key to Your Revenue Rebound”
Chris Zdunich
Bob, that is why I work individually with 31 of of our 70 people.
Porte Brown’s management understands the importance of invididual marketing and sales skills.
These skills are not only important for bringing on new clients, but good preparation, along with asking and listenting skills go a long way toward enhancing client relationships.