This week is full of changes.

The Firm You Want

I started the TFYW newsletter just under two years ago.

I’ve released 97 editions now, averaging about 1,200 words per newsletter.

Over the last 12 months, the average open rate has been 51.4% and an unsubscribe rate of about 0.2%.

Most weeks, it has been a grind as I’ve tried to provide as much value as possible.

When I started, I wanted to do something different.

I didn’t want to curate a list of other posts, blogs and video links.

I didn’t want to be more noise.

My intention was to make the five minutes you give me each week impactful.

I hope that I’ve done that.

And I hope that you keep reading as I change things up.

I am rebranding this newsletter to the Built On Recurring Revenue newsletter.

I am moving away from a generalist accounting firm newsletter and focusing on helping firms generate recurring revenue.

Niching Down

Niching down is becoming increasingly important.

Not to generate revenue but to generate profit.

Concentrating our efforts and delving deeper into fewer things has a lot of power, as AI and bots continue to augment our industry.

Playing the ‘safe’ and broad role of a generalist firm and serving anyone is becoming more uncertain daily.

The pricing pressure of general advice and compliance is getting very heavy.

While being good at debits and credits is foundational, it won’t be enough to support the profit goals most of us have as firm owners.

Intuitively, I think we all know this, but at this point, the inconvenience of changing still outweighs the current and perceived future discomfort for many of us.

Niching down as an accounting firm doesn’t mean doing what you’re doing now, but for only one industry.

 

If you don’t remember anything else from this newsletter, remember this:

 

Niching down means we provide solutions to improve clients’ tech and processes, navigate their market pressures, and build their strategic mindsets.

 

And while I dole out advice about niching down, I need to practice what I preach. 

Until now, I’ve helped all types of firms with systems, offers and teams. But to maximize the value I can deliver as effectively as possible, I have to refine the lane I play in. 

Recurring Revenue

I am doubling down on recurring revenue. 

Some call this CAS or CAAS, Client Accounting Services or Client Accounting and Advisory Services. 

First, I feel recurring revenue and the client relationships it creates are the best ways to deliver long-term value and find professional fulfillment.

I’m not saying that tax compliance and planning aren’t important. 

But, those services have to be played within a closed system. 

The value that we deliver is limited by the amount of tax owed and the period in which the transactions take place. 

Meanwhile, advisory relationships can impact the current and future years, and the growth impact is uncapped.

Second, I also think that recurring relationships are the future of accounting.

Everything after a transaction or series of transactions will be prime pickings for AI.

Scenarios in which the variables are fixed are where the bots will replace us first. 

Our value will be most significant before the transactions are made.

We will help clients by mitigating risk, assessing market threats and opportunities, and aligning personal objectives.

I’ve spent the last 2.5 years working with firm owners in the US, Canada, and Australia.

And while my general firm knowledge is decent, the most value I can deliver is helping firms identify a niche and build teams and systems to generate more monthly recurring relationships and revenue.

Part of this refocus is the release of a new program, the Recurring Revenue Code. It is a distilled version of the last few years without the high-ticket one-on-one coaching price tag. 

The waiting list is just about full and the program launches next week. 

My refocus on recurring revenue won’t be beneficial for some. 

And that’s the intention. 

As a small consultant or firm, figuring out how to be valuable to a few clients instead of useful to many is the fastest way to scale your firm.   

I hope you stay for the ride.

Mark