Get Better Results Without Working More
Did you know an economist can contribute to your success? It’s true. And it’s nothing new. Check out how to grow your business faster once you apply this principle.
In 1896 Vilfredo Pareto noticed that about 20% of the peas in his garden produced 80% of the peas. Then he looked at land ownership in his country, Italy, and discovered that 80 percent of the land was owned by 20 percent of the people. His discovery came to be known as the Pareto Principle or the 80/20 rule.
When you apply the 80/20 rule in your business, you’ll find that your business grows faster. Take an inventory of your ongoing activities, tasks, and services to determine which ones contribute significantly to your accounting firm’s growth.
The First Step To Grow Your Business Faster
For accounting professionals, the first step for applying the Law of the Vital Few (Pareto Principle) is to uncover the critical 20 percent in various aspects of your firm.
- Identify the top 20% who are your best clients.
- Determine the best 20% of services and activities which grow your bottom line.
- Assess which 20% of your team members are the highest contributors in your firm.
By doing this, you discover the people and activities that get the best results for your accounting firm. Next, carve out time on your calendar to identify your powerful contributors. Then, strategically focus on those people and activities for even faster growth
After you’ve identified the power sources within your firm, then examine the other 80 percent. Take a good hard look. Get rid of the biggest time wasters. The dead weight creates drag, which slows down growth.
You’ll want to evaluate the other elements of your accounting firm as well.
Look for ineffective activities, tasks, and services. A rule of thumb is if they are not bringing in as much as you are spending on them, then let them go. By doing this, you determine which services fail to generate enough profit.
Here’s your priority check:
- Activities: Figure out how to devote 80% of your time to the top revenue generating activities.
- Tasks: Are you and your staff spending time doing things that do not directly support the top income generating activities? If you’re not sure, then take an inventory. Perform a detailed review of tasks in your firm. Then identify the ones that support the golden 20%.
- Services: What services are not generating income for your firm? You’ll want to eliminate them because they’re dead weight.
Prune the Non-Performers
Make wise decisions as you review your 80%. Eliminate activities, tasks, and products which play a minor part in generating revenue. Once you prune that dead wood, you’ll have more energy and time to focus on items that grow your business faster and ultimately bring in dollars.
- Activities: Growth-minded accounting professionals regularly review what’s working and what’s not effective. Make a decision to reallocate your activities. The top 20% that generates the most revenue for your business deserves your attention and support. You may not realize it, but there’s probably redundancy in your firm. As I was reviewing how one of my clients optimizes her time for her bookkeeping practice, we focused on her emails. Instead of continuing to answer emails about the most frequent client questions, she set up a learning management system which encouraged client engagement and answered the bulk of questions.
- Tasks: Find ways to combine tasks for a smoother flow. One of my clients realized her calendar had gotten out of hand. So we worked together on blocking time for admin tasks and time for lead generation activities. Then she eliminated time consuming tasks that did not directly create revenue.
- Products and services: Consider bundling services which get overlooked and undervalued. Either bundle them together or make them upsells to your most popular services. One enrolled agent added advisory services to his package options. If a service consumes time and energy, but is not contributing to your firm’s success, then discard it to focus on your revenue generating efforts.
Trimming non-performing activities and products is one of the fastest ways to consolidate your time and experience faster business growth. Take an inventory of your accounting firm’s services. Look for time wasting, non-performing activities and products that are under-performing.
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Concentrate Energy on Your Best Revenue Producing Items
Identify the 20 percent activities, tasks, and products that bring in the majority of your income. Focus your energy on those specific things. You’ll have more time for your best clients, enhance your top services, and streamline your workflow. You may even have time to generate new ideas for your accounting firm now that you know what works.
You’ll find the Pareto Principle is a rewarding concept for streamlining your firm’s success.
My clients have discovered that simple principles, like the 80/20 Rule, have helped them identify time and energy wasters.
Are you ready to grow your business faster? Follow these recommendations to increase your revenue without becoming a slave to your accounting firm. Right NOW claim your FREE RESOURCE to earn more while lightening your workload.