When it comes to growing a business, particularly in the accounting industry, there is a fine balance between the number of clients you have and the number of services you offer. Understanding this balance can be the key to increasing profitability and long-term success.
If you are just starting out, chances are you have a low number of clients and a low number of services. This is a natural stage, but growth requires strategic decisions about how to expand.
One common mistake I see is firms offering a wide range of services but struggling to attract enough clients. This often leads to diluted focus – spreading yourself too thin across too many offerings without a strong client base to support them.
On the other hand, if you have a high number of clients but only offer a few services, this can be a sign that you have developed a strong core product. Whether it is tax and accounting or another core service, this is a solid foundation to build from.
The real sweet spot – and where profit per client skyrockets – is when you have a high number of clients and a high number of services. This allows you to maximise the lifetime value of each client, deepening relationships and increasing revenue.
Looking back, my mistake in the early days was trying to expand too quickly in terms of services before ensuring we had an adequate number of clients. If I could give one piece of advice to firm owners, it would be this – build a solid client base first, then strategically introduce additional services when the time is right.
By maintaining this focus, you can ensure sustainable growth and long-term profitability.
The Biggest Bottlenecks Holding Your Business Back – And How to Fix Them
Running a business isn’t just about getting clients and delivering great work. It’s about keeping the whole thing moving forward without burning yourself out. Too many business owners – myself included in the past – become the bottleneck in their own firm. The key to breaking through? Leverage, the right business model, and smart scaling.
The Bottlenecks That Keep You Stuck
1. You’re the Bottleneck
You’re signing off on everything, managing the team, handling client issues, and making every big decision. Sound familiar? It’s exhausting, and it’s also the fastest way to stall growth. Your job as a business owner isn’t to do everything – it’s to build a firm that runs smoothly without you being in the trenches 24/7.
2. Your Business Model is Holding You Back
Margins are everything. If your pricing is off, your services are too complex, or you’re working with the wrong clients, you’ll constantly feel like you’re running uphill. The right model makes it easy to scale, keeps your team happy, and ensures you’re making the money you deserve.
3. You’re Capped on Capacity
No time, no energy, no space for new clients. Maybe you’re maxed out on brainpower or dealing with constant drama from clients or staff. Growth feels impossible when you’re already at full capacity. But the problem isn’t growth itself – it’s how you’re set up to handle it.
The Fix – Leverage, Model, and Scale
1. Build Leverage Into Your Firm
A high-performing firm isn’t just about working hard – it’s about working smart. Every accounting firm needs:
- A Grand Plan – Clear vision, mission, values, and a target client.
- A Dream Team – The right people doing the right work. You’re not supposed to do it all.
- World-Class Delivery – It’s not about filling timesheets – it’s about delivering results for clients in the most efficient way.
2. Nail Your Business Model
Your pricing and service structure make or break your success. Subscription-based accounting works well, but it needs to be set up properly. Over 60% of our revenue comes from recurring monthly fees – but that didn’t happen overnight. Get your pricing right, streamline your services, and make sure your margins are worth your effort.
3. Scale Without the Chaos
Scaling isn’t about just adding more clients. It’s about setting up systems that allow growth without stress.
- Profitable Partnerships – Be the go-to person for your clients’ financial world. That doesn’t mean you do everything yourself – it means having the right partners in place.
- Sales Systems – Sales isn’t a dirty word. It’s just a process, and every business – even Woolies – has one. Build a framework that works, and sales will become second nature.
- A Marketing Machine – If you’re relying solely on referrals, you’re making it harder than it needs to be. Get a system in place that attracts the right clients, consistently.
The End Goal – A Business That Works for You
The real goal here isn’t just more money – it’s freedom. Freedom from burnout, freedom from frustrating clients, and freedom to enjoy running your business again.
Most accountants I speak to feel overworked, underpaid, and frustrated with all the industry nonsense – ATO issues, compliance headaches, and unrealistic client expectations. But when you set up leverage, a solid model, and scalable systems, you reconnect with why you started in the first place.
So the question is – are you ready to get out of your own way?
In 2020, Inspire faced a pivotal moment. With seven team members reporting directly to me, it was clear we needed a better structure. After some soul searching (and navigating COVID), we introduced the Diamond Team Structure.
This approach not only improved my capacity and mindset but also created clear reporting lines, enabling sustainable growth for Inspire. From 2020 to 2024, we scaled by simply duplicating these teams
An accounting firm owner asked, Whens the right time to have a leadership team?
We started ours when our team had nine team, with seven out of nine joining the leadership meetings.
Using the EOS methodology, we held weekly sessions to tackle challenges, improve, and grow.
Even if youre a small firm, start now.
Gather your core teamwhether its just you and a few othersand carve out weekly time to focus on the business.
Trust me, its a game-changer.
I often hear accounting firm owners say, I just need more clients. The solution they usually jump to is hiring a marketing consultant to drive traffic and boost sales. But heres the thing: before you spend money on consultants, you need to make sure your business is set up for success.
Step one is simple: sort out your calendar. Too many of us are running on fumes, stuck in the business, and not working on it. Free up time, get your systems in order, and create space for strategic thinking.
Next, lets talk about pricing. Have you adjusted your prices in line with CPI? When you look at the compounding effect of CPI over the last few years, youll see just how important this is.
And dont overlook your sales process! If youre still using hourly rates or outdated methods, its time to move towards monthly recurring revenue. Develop a product or package thats great for your clients and your business.
Once youve nailed down your calendar, pricing, and sales, THEN its time to think about marketing. And Id start with your existing clients. Often, referrals and repeat business can be much more valuable than cold leads.
The key takeaway? Build your foundation before reaching for that marketing consultant. Once you do, the results will speak for themselves.
Grow a fun, super rewarding accounting firm that runs like clockwork. We help accountants go from feeling burnt out, working way too many hours, making an average profit and struggling to grow.
