Impaired Leverage Impacts Growth & Succession
What is Impaired Leverage? Impaired leverage is a main bottleneck in growth and succession. It is the lack of qualified people who can conduct a successful sales call, network, and bring in new business. This contributes to employee turnover and a lack of engagement by the professional staff.
What is the Impact? Growth becomes dependent on a handful of professionals putting the entire firm at risk and leaving staff disengaged in the firm’s future. We challenge how firms spend time networking and prospecting. Often, they think they are conducting business development, but they are in the wrong places wasting time and getting discouraged.
What are the Signs of Impaired Leverage? The key metric is who is bringing in work. Staff that is not effectively networking should start by getting involved in existing client mining. It is the easiest place to learn how to sell. Most CPAs have a combination of fear and a lack of skill and training that is the source of the problem. We can help make progress here.
Can Type “A’s” All Sell? No. Some may feel selling is beneath them, but the reality is they are frustrated because selling is not something they are good at. There are no set checklists to follow when it comes to selling. Most accountants overthink the sales process and try to memorize a sales pitch. Having a sales pitch is the first mistake. Instead, learn how to ask the right questions and overcome immediate objections. Once that is under control, selling and networking get easier.
What are the Benefits?
- Engages staff in the growth process
- Creates a stronger succession team
- Generates revenue
- Should reduce turnover and make recruiting easier
- Creates energy in the firm
Is Impaired Leverage a Marketing or BD Issue?
No. Most marketing professionals have limited business development skills. It is impossible for someone with limited selling skills to teach others how to sell and network. Running campaigns with employee incentives rarely work because the employees fear selling and or do not know how to effectively sell. Business developers have better selling skills but most lack the knowledge of the accounting profession. Generic selling skills do not easily apply to the CPA profession. Teaching accountants how to sell and network takes a deep understanding of the accounting profession.
How Does a Firm Resolve Impaired Leverage?
Impaired leverage is solved by directing the firm’s professionals to conduct more constructive outreach. We work to involve the entire professional staff. At a minimum, we want them to identify how to sell more to existing clients and add value to these clients. We have some structured training that is a primer, but the real value comes from our NextGen Groups we form in firms and the daily interaction we have with our monthly clients.