There is always a lot of encouragement to ditch the PITA (Pain in the … Assets) clients in order to focus on our best clients but few accountants seem to get around to doing this.
I recently coached a business owner through dropping his least profitable clients: which ones to drop, what to say, and how to refer them elsewhere if appropriate. He lost 22% of his turnover but only 6% of his profit. Not only that but he has stopped working weekends.
As part of the exercise he has also set out his ideal clients in terms of minimum size and complexity so that his team can filter enquiries and they should only take on good quality clients from now on.
Give it a try and let me know how you get on.
Update: A year on this businessman has set new criteria for their ideal client and is carrying out a second cull.
What KPIs (Key Performance Indicators) do you use for your business?
There are so many KPIs that you can track but it is important to focus on the handful that are relevant to your business right now. Tracking irrelevant KPIs is about as helpful to my business as chasing my Tetris high score.
It may surprise you that, as a qualified accountant, I don’t include profit in my weekly KPIs. Profit is the consequence of doing the right things. I do, however, track my marketing activity quite assiduously. The number of industry events that I attend/speak at affects the number of books and courses that I sell. This is the right thing for me to do but your business will be different.
Our Strategic Planning Day helps to identify the best KPIs for your individual business but you can take a look and work some out for yourself. Do you need to concentrate on marketing, sales, cash balances or profitability?
Getting a new high score in what matters can unlock major achievements for you and your business.
Give it a try and let me know how you get on