Many accounting firms go through ups and downs with their marketing and business development efforts. The smaller the firm, the more it feels like a roller coaster. While we believe marketing should be a consistent effort, the reality of running a business can sometimes get in the way. Whether you own a budding accounting firm or are into multiple generations of owners, there are six (great) reasons to reinvest in marketing.
Shifting Client Demographics
Your clients are aging. Along with that reality comes a transition in owners. Just as many accounting firms are facing succession challenges, so, too, will your clients. You will inevitably face some client attrition, even if you have a very proactive effort to build relationships with the successors. You will need new clients to replace lost clients just to maintain the status quo.
You need great people to ensure your firm’s longevity and success. It’s difficult to promote and keep people engaged and challenged in their work if you aren’t growing. New clients, new opportunities, and an attractive firm will give gold-star CPAs a reason to stay with your firm and for those considering a partnership, an incentive to buy in one day.
Whether you want to transition your business internally or sell, your succession plan is heavily dependent on the value of the business. Firms that are growing and have a solid brand image and awareness in the marketplace are significantly more attractive and valuable.
We no longer live in a time where the phone just rings. Yes, referrals are a big part of where firms get their business, but getting good referrals requires effort. Growing accounting firms are proactive; they market and sell with a passion. Your competition is marketing and selling to your clients and prospects. If you aren’t out there, you will miss a lot of opportunities.
Growth means being able to hire or promote new talent and invest in soft-skills training, education, and resources. It is also an invitation to diversify your services. Initiatives like these often attract new clients and retain ideal clients. As your clients grow, you should be able to grow with them.
Better Bottom Line
If you are still not convinced to reinvest, I am hoping this does it. Any effort that grows your firm translates to making more money. Yes, there is an upfront cost and it doesn’t happen overnight, but the long-term benefits pay off. When a company invests in marketing and then reinvests when those initial efforts pay off, the result is a balanced ecosystem of growth.
Regardless of your size, all accounting firms can afford to invest in marketing and business development. You will be surprised how far a small investment in regular marketing and business development activities can take you. Interested in helping your firm sharpen business development skills? Learn more about our annual Rainmaker Development Program.