New eBook Available (with a chapter by moi)

I am honored to have a chapter in this new free eBook. Here is more from the press release:

Entrepreneurs starting their own businesses now have a little more help. Start with a Profit: Best-Practice Tips for New Entrepreneurs from Top Accounting Industry Leaders is the latest guide to helping new business owners become successful. 

Editor Sandi Leyva, CPA, asked fellow accounting industry thought leaders one question:  “For someone who wants to start a new business from scratch today, what is the most important strategy or tactic you’d tell them about to help them succeed?” One dozen thought leaders along with Sandi provided their answers.  Co-authors include:

  • Alison Ball, Senior Manager of the Global Influencer Program of Intuit, Inc.
  • Sharada Bhansali, Co-Founder of AccountantsWorld
  • Randy Johnston, CEO of Network Management Group, Inc.
  • Ed Kless, Senior Director of Partner Development and Strategy of Sage
  • Sandi Leyva, Founder of Accountant’s Accelerator
  • Monika Miles, President of Miles Consulting Group, Inc.
  • Clayton Oates, Chief Solutions Officer of QA Business Pty Ltd.
  • Edi Osborne, CEO of MentorPlus
  • Leslie Shiner, Owner of the ShinerGroup
  • Doug Sleeter, Founder of the Sleeter Group
  • Sandra Wiley, COO and Shareholder of Boomer Consulting
  • Geni Whitehouse, Countess of Communication of Even a Nerd Can Be Heard
  • Scott Zarret, President of CPA Academy

“To my knowledge, it’s the first collaborative work of thought leaders in the accounting industry,” says Sandi Leyva.  This is Sandi’s 30th book and her first collaboration as editor. 

Although each author’s contribution is quite unique, a few client-centric themes emerged, including how to market most effectively, how to build customer relationships, and how to interact with clients.  Others focused on business models and pricing.  Still others urged the entrepreneur to embrace their passion and their “why.”

 

Profit Is NOT the Problem

I had an interesting exchange this morning with Bill Kizer, founder of the Sage Partners, Employees and Alumni Networking LinkedIn Group.

He posted, “Want to know what’s wrong with business today? The prioritization of profit over principle is built into American corporate culture.”

I disagree, at least partially.

Pursuit and prioritization of profit is not a bad thing per se. The problem occurs when the pursuit of profit is driven by an over focus on efficiency and cost reduction rather than innovation and satisfaction of customer needs and wants.

The problem comes when the question, "How are we to be profitable?" is answered primarily by saying, "We will need to cut and recover costs." Yes, short term thinking as Bill points out is part of it, but it is the loss of the entrepreneurial spirit (or as some would say – purpose) that is the real problem.

I believe all companies begin to die when more energy is spent on creation of profit through cost reduction (efficiency) than on the creation of profit through innovation for customers (effectiveness).

Yes, this is a derivative of the Eff’ing debate.

ET HORA LIBELLUM DELENDA EST

Firm of the Future Symposium

On August 9-10 in San Francisco, Ron Baker and I will once again be presenting our Firm of the Future Symposium sponsored by Sage North America.

This symposium will be dedicated to the possibility that a professional organization can be run more effectively when it becomes a knowledge firm rather than a service firm. Creating such an organization is hard work and not for everyone as it requires professionals to think differently than they have in the past about what it is that they do.

Objectives

  • From a focus on revenue to a focus on profit
  • From a focus on capacity to a focus on capital management
  • From a focus on efficiency to a focus on effectiveness
  • From a focus on cost-plus pricing to a focus on pricing on purpose

Sage (Ed’s employer) has agreed to open a limited number of spots for firms that are not partners of Sage. If you are interested in joining us, please send me an email and I can get you registered. The price is $2,500 per person and comes with a 100 percent money back guarantee!

View the Firm of the Future Trailer

 

One of the more interesting stories to emerge from our previous FotFS, was that of Peter Coburn of Commercial Logic. They are publishers of, you guessed it, time and billing software. Peter underwent a conversion of sorts and posted a terrific article on it.

Always State a Value When Asked for a Price

This has been around quite a while, but I think it bears repeating.

Often times a professional is asked about cost, as in, “How much will this cost?” One of the best answers I have heard goes something like this – “Customers of ours who have saved and/or seen an increase of $V, have spent $P, but unless we can discover $V we won’t even send you a proposal.”

I personally believe that V should be at least three times P. My reasoning is that in the rare cases the price ends up being 2P, the value is still greater than price.

This is not a perfect answer and does not always move the asker off the cost question, but it is the only way I have seen that has a chance in moving them at all.