Where Does Your Firm Sit on the Growth Grid?
If you’re wondering how to grow your accounting firm you’ve come to the right place. Fair warning to the faint of heart though, if you want to grow, you have to embrace the dreaded 4-letter word.
Why? Because if you’re in business, you’re selling.
That’s just the way it is. There’s simply no way around selling if you want to grow your business and increase the value that you offer.
But the question is how exactly do you want to grow your accounting practice?
Take a look at the following chart:
We call this the Growth Grid
The Growth Grid
Let’s break it down. You can focus on selling to your existing clients or prospective clients. That is, clients you already have vs. clients you could have in the future. Along the x-axis you have inbound leads vs. outbound communication—clients that come to you vs. prospects that you must work on marketing to directly in order to reach.
Quadrant One: We’ve nicknamed this quadrant FIL or ‘Falls In Lap’, it’s where your clients come to you and ask to sign up to another service, or upgrade a service they’re already paying you for. This is by far the easiest and most financially lucrative of the four options.
Quadrant Two: In this quadrant you’re responding to prospective clients inquires. This means less work for you than either of the remaining quadrants.
Quadrant Three: If you’re a mature firm with a lot of growth, you have potential to identify opportunities and make suggestions to your existing clients.
Quadrant Four: If you’re in this quadrant you are doing outbound communications to prospective clients. This requires more work on your part than any of the above—but there is a time and a place where this is appropriate.
Watch the video below from our recent #FridayBeerstorming for the full details.
Where does your firm sit?
Which of the four quadrants do you want to be in?
Chances are you’re most interested in Quadrant One, in which you have a steady flow of inbound leads from people you already have a relationship with. And that makes sense, it is by far the most valuable of the four.
The second most valuable is Quadrant Two—not Three—because here you’re simply responding to inquires rather than making suggestions to current clients which you may feel hesitant about.
Quadrant Three (outbound to existing clients) comes next and is followed by Quadrant Four (outbound to prospects). Outbound sales is a valuable, valid and an appropriate strategy in some cases. However, it requires more from you than any of the other three.
Now ask yourself, which of these are you currently focused on?
Is it time for a change?
Knowing which quadrant you want to focus on to grow your accounting or advisory firm helps to answer strategic questions like:
- Who are you targeting?
- How will you communicate with them?
- Which metrics will you use to track conversions?
- Which channels will you use to communicate with them?
- What education and information do you need to provide them?
So which quadrant are you focused on currently? And is that quadrant where you most want to focus? Let us know in the comments.