Most accounting firms grow by default (reactively).

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They hire when they can’t get the work done or think they can afford it (or not). Buy tech to solve a short-term fire (SO many firms have had multiple false starts with tech). Take on new clients (any client – no selection criteria. Kneejerk to client demands, making them all things to all people). Maybe even absorb a small firm because the opportunity landed in their lap…or they need more revenue to keep people busy, who they probably shouldn’t have hired in the first place.

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It all feels like growth. But under the surface, it’s often chaos.

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At Renew, we view growth as strategic.

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We talk to a lot of firms who are kind of stuck in the middle:
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• They’re past startup mode.

• They’re generating decent revenue and are usually reasonably profitable (although they are earning absolutely every penny).

• They’re adding people, clients, and services…all of which creates multiple ways of doing things and more complexity.

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But they’re not building long-term value. The firm is growing (well, it is if you measure it by revenue) — but the owners are still stuck in the middle of everything, and often margins are being eroded. If you deduct market salaries for partners, there’s often no EBITDA left.

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Strategic growth isn’t just about doing more — it’s about designing better.

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It means:
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• Niche marketing: not just getting more clients, but target clients (sometimes with focus on a particular industry or industries) that fit your firm’s model and allow you to dictate the terms of the relationship.

• A team with leverage: building an org chart that doesn’t revolve around partners.

• Pricing to win: setting minimum and target prices, raising prices every year (Renew firms increased prices by 13% on average this year…very few clients leave) and most importantly, pricing based on value and outcomes, rather than time and inputs.

• M&A with intention: not just buying a book of business but being alert for tuck-ins that make sense (i.e., target clients that align with your model, acqui-hire of key people that you’re missing in your firm).

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At a certain point, the firm isn’t the problem. The way you’re growing it is. Strategic growth means taking control, not just hoping that more will eventually get you where you want to go. More freedom, more value, or more options is much more valuable than more revenue for the sake of it.

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Interestingly, firms that grow intentionally are the ones that will have all the options later; to scale, to exit, or to simply work less and earn more. Strategic growth is a discipline. And if you’re ready to stop reacting and start being more strategic with your growth plans, let’s schedule a call.

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