An abundance of clients seemingly signifies a popular and accomplished firm.
However, when these clients contribute little in the way of profit yet demand a lot of time, they prove only detrimental to the health of both you and the firm.
In a recent group call with the firms with whom we work, the ReNew team discussed the Insanity Zone — the area for accounting firms in which many low value clients demand a substantial amount of time, often from partners — and the impact it has on our mindset. Shannon Vincent discussed how the presence of this obstacle limits the advancement of both the firm and your lifestyle as well as the subsequent need to ‘move the needle’ away from a hindrance.
Too frequently, the Insanity Zone gives the illusion of success, with an abundance of clients seemingly signifying a popular and accomplished firm.
However, when these clients contribute little in the way of profit yet demand a lot of time, they prove only detrimental to the health of both the firm and those they demand time from.
Though these clients need to be dropped, often mental barriers stand in the way of cutting down the insanity zone; they might have been with you a long time, or may hold a certain relationship with you or your family... maybe you just like helping out as many people as possible. When you think too deeply about your connections and history with these clients, it becomes more and more difficult to let them go.
However, this mindset leads to a lack of time for growing and developing the firm and severely limits your leisure time — time that you could be spending doing what you love.
Your mindset is the most important factor in improving this situation; taking action seems a lot harder when you overthink it.
However, if you work on it regularly, you can transform your attitude, allowing you to focus on target clients that both work well for you and want the best for you, rather than clinging to every last piece of revenue you can possibly get.
As demonstrated above, when you work on your mindset very little, you will have a high level of insanity zone clients by clinging on to those who do not bring you success. However, as you continue to regularly develop your attitude, you will eventually reach a stage where you have few or no insanity zone clients, yet a more practical and accomplished firm; you do not have to sacrifice the success of your business to improve your lifestyle.
If you're interested in more insights like these, consider signing up for our Renewsletter: https://www.renewgroup.com/newsletter. Alternatively, if you'd like to discuss your CPA firm's specific needs, feel free to schedule a call with us: https://www.renewgroup.com/contact.
About the Author:
Colin Dunn, a Chartered Accountant with extensive experience in the accounting industry, is passionate about helping accountants transform their firms and lives. With over 25 years dedicated to creating content for to help CPAs improve their profitability, Colin shares valuable insights into reinvigorating the way you think about your client base. Colin believes that CPAs can create a better work-life balance by learning from past experiences and applying these insights to their firms, allowing them to spend more time with their families and pursuing hobbies and leisure interests.
About Renew Group:
Are you tired of being on the diet but not seeing results? Most consultants to the CPA Profession do lots of talking and deal in 'fluff'. But there's no accountability and no focus on RESULTS.
At Renew, we start with your numbers. Our firms complete a Pareto for Profit analysis EVERY YEAR, set new targets to improve their profitability and then 'weigh in' regularly. We give you a roadmap to transform the profitability of your accounting firm by accessing our content, collaborating with other firms on a similar path and being held accountable by our coaching team and your peers.
Get paid what you're worth, create a better life based on a scalable business model and eliminate tax season insanity once and for all!