TFYW #002: For Every Phase Of Your Firm

Sep 23, 2022

I know you have heard how important getting into the cloud is.

You’ve probably heard it from the QBO and Xero reps – not to mention the massive ecosystem of apps built for those platforms.

I want to present a different perspective that has seen the benefits from every phase of running a firm.

Whether you’re just starting your firm or have only a few years left, getting into the cloud is an absolute must.

Launching Your Firm

I started my firm in the fall of 2017. I had just moved across the country and had no local network.

The cloud allowed me to connect with potential clients all over the country. I did not have to focus on convincing local businesses to be my clients.

moved to a farm, and my firm would have folded if I had waited for referrals or walk-in traffic.

As my clientele grew, I didn’t have to hire right away. I leveraged the cloud to automate every workflow in my firm, adding more profitability to the bottom line.

Quick Summary: Get Traction quickly while keeping your firm lean.

Growing + Scaling

I hit my growth phase in 2018, and in December 2018, I landed my largest client to date. Every year, this one client would pay me $30,000 a year.

As I entered my firm’s growth phase, I could scale my service again without having to hire many bodies.

My overhead was low (I had no office), and my margins were high.

I not only scaled my essential firm services but also offered new services to complement the ebbs and flows of tax work. Work that generated consistent monthly, predictable revenue.

I climbed the value ladder quickly – leveraging my existing client relationship to significantly increase my revenue per client.

The cloud allowed me to provide outsourcing services without me stepping into my client’s offices.

When I did hire, I could pick from across the country. The cloud talent pool for bookkeepers and accountants was incredible.

Growing did come with pains, but late nights tethered to the office were not one of them. I had the flexibility to travel while still providing an incredible client experience.

Quick Summary: Create diversified and recurring stable income and lead an engaged mobile team.

Selling

When I sold my firm, I listed with an advisor with a network across the continent. Firms from Vancouver, Texas and New England were interested in purchasing my firm.

Given that I had no office lease to assume or local staff to manage, any firm could have purchased my firm with little downside.

I sold my firm at a 1.5x revenue valuation— a 50% premium from traditional firms.

The transition of my firm was seamless. I transferred the tools and apps to the new firm owner, and with my documented workflows, the new firm owner could jump in immediately.

Quick Summary: Create an in-demand firm, increasing the valuation of your firm by 50%.

With more clients open to virtual relationships and new apps in development every day to make doing business online better, there is little downside to moving to the cloud.

Next week, I will jump into the gateway app that cemented my position in the cloud. Stay tuned.

Build The Firm You Want,
​Mark

P.S. Email Mark@FirmNexus.com with something that you want me to talk about. I’ll add it to the list. 

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