Long term thinking is vital to the continued success of a business.
However, many firms think they are playing the long game but are plagued by short term thinking.
Bill Gurley, a successful venture capitalist, once said that if someone starts a company because they think it will provide a good lifestyle, they are in for a rude awakening.
This same sentiment applies to starting a CPA firm. While many firm owners may eventually achieve a comfortable lifestyle, it takes time and good decision making to get there.
One factor that can contribute to this is short-term thinking versus long-term thinking.
Short-term thinking involves making decisions based on immediate needs or goals, while long-term thinking involves making decisions with a focus on the future and potential long-term consequences.
While short-term thinking can lead to immediate satisfaction, it may not always be the best decision in the long run. On the other hand, long-term thinking often requires sacrifice in the short term, but can lead to greater benefits over time.
Many firms believe that they are playing the long game, but are actually plagued by short-term thinking. They may have multiple business models under one roof and hold onto clients for short-term revenue instead of focusing on the long-term implications of their decisions.
To make better decisions, it's important to ask yourself questions such as what the implications of a decision will be in three years, what the worst-case scenario is, and what you would do if you knew you couldn't fail.
Additionally, considering what could be subtracted from a problem instead of adding to it and asking how things would look if you dropped the struggle and made it easy can also help to make better decisions.
In the end, it's important to remember that your reality is largely negotiable. As Mark Twain said, "Whenever you find yourself on the side of the majority, it is time to pause and reflect."
By taking a long-term perspective and making thoughtful decisions, you can create a successful and fulfilling career in the world of CPA firms.
Taking Action:
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About the Author:
Shannon Vincent has dedicated his entire career to working with accountants in various capacities. He has consulted with Top 100 firms to Sole Practitioners, helping them create sustainable and profitable businesses. A member of the California Society of CPAs, he received a Bachelor’s Degree in Economics with an emphasis in accounting from University of California, Santa Barbara, and now resides in the San Francisco Bay Area. Shannon is passionate about helping accounting firms plan and enact better business practices so that they can thrive into the future.
About Renew Group:
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