Are You Content?

Don't get me wrong. Being content is a good thing. When you're content you are stress-free. However, there is contentment and then there is complacency.

I've been at the Firm Growth Forum this week hosted by Accounting Today. There have been some great thought leaders sharing their perspectives about the state of the business of accounting.

Even though you may not be in the accounting business, there are similarities in almost any business segment or industry and there are some useful insights that you will want to consider.

Business is Good

The accounting business or profession has - as have many of you - been experiencing some of its highest growth and profitability in many years.

There is a real supply and demand issue these days. Supply and demand of talent which is resulting in capacity issues.

More capital is being deployed within the industry as firms look to expand and as more private equity capital has become available in recent years and an uptick in M&A activity.

Headwinds

There is a real labor shortage. Fewer and fewer accountants are entering the profession, and fewer and fewer are seeking to become CPAs.

There is A War for Talent that no longer is a temporary issue. It's here to stay for the long term.

Where There Are Issues, There Lies Opportunity

For every issue, there are opportunities - that is if you know where to look for them.

For most CPA firms, and possibly your business as well, there is a major capacity issue. If you have a systemic shortage of talent, and you have a marketplace that demands more from you and your cohorts, what are you to do?

Some firms are making acquisitions, if for no other reason than to have more talent on board. Others are looking to alternative structures like off-shoring, domestic outsourced solutions (in-shoring), strategic alliances, or investment in technology.

Just as in most businesses, to pay for these investments firms are looking to private equity firms, financial institutions, or from equity, which in this case is partners' equity.

What About the People?

First, you have to remember that no matter whether you are a CPA firm or any other business, you've got to put people first.

As I shared recently during the AFO Wealth Management Forward Podcast hosted by Rory Henry, CFP®, BFA™, business is about "People People People"!

You have to make investments in the development of your people. Think of it as a long-term capital investment. It's foundational to your success.

Getting back to issues vs. opportunities, if you have systemically fewer people and still want to grow your business and thrive, not just survive, you need to get innovative.

It's Time For Fresh Thinking

You've got to get creative and innovate with a mindset of continuous improvement.

One way to implement continuous improvement is to have a mindset of innovation backed up by a process that is intentional and includes specific objectives and measurable KPIs.

And I encourage you to embrace failure. The key is to fail quickly and cheaply. If not, you'll miss opportunities for transformational growth and game-changers.

In The End

It is all about relationships, people and culture. For too long, we have focused on org charts, strategic plans, and knowing the numbers. Yes, you need to know your numbers. But consider this:

What sort of legacy do you want to leave for your business when you retire or otherwise leave the company?

I've always lived by the notion that I want to leave a place better off than when I first arrived. Be content in knowing that what you will be remembered for most are the relationships you forged with your teams, your customers, your board, and vendors.

Now more than ever, recognize that you are in a relationship business, no matter what business you are in. It's all about People, People, People! people.

Until next time!