In the competitive world of accounting, building a premier firm requires more than just technical expertise. To grow a tax business, it demands a strategic vision, a collaborative spirit, and the ability to turn challenges into opportunities.
Many accounting professionals start their businesses intending to create a job for themselves. While this provides initial satisfaction, it often limits growth potential. The real key lies in shifting your mindset from solopreneur to business owner and proactively seeking ways to expand your firm.
Chad Jenkins, a business growth expert, shared insights on the Building the Premier Accounting Firm podcast on how accounting professionals can achieve exponential growth through collaboration, curiosity, and embracing friction.
We’ll explore some of the insights Jenkins shared. Listen to the full episode of the podcast here.
From Fear and Greed to Exponential Growth
What drives someone to start and grow a tax business, or a firm that offers other services? Jenkins’ journey into business began at a young age, fueled by “fear and greed.”
This early start shaped his unique approach to business, focusing on value creation through collaboration. He defied conventional growth strategies, instead of advocating for combining existing resources and ideas to achieve exponential growth.
After figuring out his father’s income, he did some reverse math, added a zero, and realized the potential for greater financial success. This realization led to a mindset shift where he began to see things not as they were labeled but as how they could be leveraged and combined to create something new.
What Exponential Growth Really Means
Traditional growth in accounting often involves following industry best practices. Jenkins challenges this premise, urging professionals to seek unconventional methods by leveraging collaboration.
“Exponential growth is whenever you can, of course, take what you’ve existingly have and combine it with things that you already have or things other people have and create exponential growth, not through the normal conventions and the way people grow in your industry,” says Jenkins.
As an example, Jenkins shared a story from his childhood. He rode horses through a sale barn, understanding that his presence made the horses appear more desirable to potential buyers. This simple act of combining his skills with the horses created value, earning him $20 per horse per night. This early experience illustrates the core principle of exponential growth.
The Power of Collaboration
Jenkins emphasizes the importance of collaboration, providing a “bidirectional collaboration identifier.” He encourages accounting professionals to look at their clients and identify commonalities in where they came from before seeking their services. These points of origin are potential collaboration opportunities. By partnering with businesses that serve clients before or after they need accounting services, professionals can create a seamless and more valuable experience.
“Make it easier for clients to do business with you,” Jenkins advises.
Imagine your clients traveling down a road, stopping at various mailboxes (businesses) along the way before reaching yours. These mailboxes represent opportunities for collaboration. For instance, a financial advisor or a tax planning service. By partnering with these businesses, you can create a seamless experience for your clients and expand your referral network. That sets you up to grow a tax business.
Naming Your Collaborations
To set yourself apart, Jenkins suggests naming collaborations. This creates a unique service that competitors can’t easily replicate. By creating a name and a dedicated landing page, accounting firms can make it easier for clients and sales teams to understand and promote the combined value.
When you name your collaboration, you can create a dedicated landing page on your website. This page explains the benefits of the combined service and provides a clear call to action. This not only makes it easier for clients to understand the value proposition, but also provides your sales team with a powerful tool to promote the service.
Curiosity as a Catalyst
Jenkins introduces the concept of a “curiosity catalyst.” This refers to the continuous pursuit of better ways to add value. He argues that many entrepreneurs lose their curiosity as they scale, falling into conventional industry practices. By staying curious and seeking new ways to improve, accounting professionals can better serve their “hero target”—the clients they want to be heroes to.
Embracing Friction for Growth
Jenkins highlights the role of friction in growth, detailing three types: regular, mid-grade (plus), and premium. Regular friction includes daily issues like pipeline problems and attrition. Mid-grade friction comes from client, team, or vendor complaints. Premium friction involves identifying challenges on the horizon and creating solutions before they become widespread problems.
“Friction is the way, and collaboration is the way through it,” Jenkins says.
The Importance of Vision
Jenkins stresses the importance of vision. He argues that a lack of vision is a limiting factor in growth. To overcome this, he suggests a thought exercise: export your profit and loss statement, add a zero to every number, and then identify the steps needed to achieve those new, larger numbers. This exercise helps break limiting beliefs and creates a roadmap for growth.
By embracing collaboration, curiosity, and friction, accounting professionals can achieve exponential growth and build premier firms. Jenkins’ insights offer a roadmap for thinking differently about how to grow a tax business and creating exceptional value for clients.
For more information on how you can grow a tax business, call 435-344-2060 to speak with Universal Accounting Center’s team.
