Building a Practice is BETTER Than Buying

Goal

Brad Filmanowicz, Illinois CPA

Develop a cost-effective client acquisition system that will enable me to: acquire new business less expensively than acquiring a practice process small business clients efficiently so labor costs are low become skilled at rain making develop two industry niches

Background

Brad established his own accounting practice in 1998. To grow the practice, Brad made seven small accounting practice acquisitions in a short period of time. The practice had been experiencing high attrition rates because most clients had been sold to him like a commodity. In effect, the practice was operating like a hodgepodge of seven merged practices with legacy issues from each prior owner. In 2004, he elected to sell the practice and take a job back in industry because he had grown tired of managing a practice full of crappy clients who had virtually no appreciation for the services he was providing.

For his second foray developing an accounting practice, Brad wanted to systematize the business so that all the accounting was done by modestly priced labor. He also desired to be more proficient at lead generation and client acquisition. In his search, Brad invested in various practice development programs, read several books and even considered buying a franchise.

In June 2006, Brad attended the Build Your Firm’s (BYF) Accounting Marketing Workshop. Initially, he was skeptical that BYF’s marketing campaign was not economical but the system made logical sense. The accounting work could be processed by moderately priced labor rates, and the clients would be higher quality than before.

Results

Since attending BYF’s Accounting Marketing Workshop program, Brad’s business has generated more than $313,000 in reoccurring revenue and has two attractive niches.

Shortly after enrolling in BYF’s Quarter Million Dollar Program, BYF recommended a brand new firm name for Brad’s practice, 1^st Chicago Accounting, and developed a website that marketed his practice prominently on the internet. BYF also developed a strategy to attract niche clients into Brad’s practice so that his clientele was well above average and fit into his practice management strategy.

Using the Build Your Firm Quarter Million Dollar Program has enabled Brad to acquire new business at less than half the price of buying practices. When he was purchasing practices, the going rate was around 1.1 – 1.3 times gross fees and the client retention rates were lousy. With the Build Your Firm system, clients are acquired for less than half the market price of 1.25, they generate higher fees and higher profit margins, and the retention rates are dramatically longer.

Furthermore, Brad is impressed with the level of service he has received from BYF outside of the program. “Throughout the year, I have been able to ask Hugh or Allan questions and their response has always been prompt and comprehensive. The program does not take a lot of my time. The phone rings and I close them. Would I do it again, yeah, in a heartbeat,” said Brad.

Building is better than buying!!