Don’t simply retire from something; have something to retire to. – Harry Emerson Fosdick
The question isn’t at what age I want to retire, it’s at what income. – George Foreman
While your peers are saving money for the “Golden Years” in standard retirement funds you can rest assured that you’re also building retirement assets as you build your practice. And the bigger your practice, the bigger your retirement.
Yes, I know, when you support them and acquire clients you’re not thinking of retirement, but you certainly could be. Each client is an asset that can bring you a considerable return as service their needs and do their accounting. Later, when you’re ready to trade in your calculator for a golf cart, you can sell that client to an anxious wannabe freelancer that wants a ready-made practice.
How Much Will Your Business Be Worth?
It’s important that you be realistic about how much your practice is worth. In a recent article for Ellwood City News, Ameriprise Financial representative Robert Powell explains, “It’s difficult to consider accepting less than you believe it’s worth, but if you retire in a down market or sooner than you’d planned, you may need to compromise on an offer. Keep in mind that selling your business may be emotional. Having knowledge about the process before you consider offers may make it less stressful and ensure the decisions you make are financially sound.”
To realistically value your bookkeeping practice, combine twelve to eighteen-months’ billings. If you are currently billing out $10,000 each month that usually translates to an asking price of $120,000 to $180,000. The difference between the upper and lower price depends upon how long you have had your clients and how much work you are willing to do to ensure that the client will stay with the new bookkeeper.
The buyer will usually want a little help to get started. This might include:
- Seller financing for three to five years during which you should charge 9% to 18% APR interest, depending on the going rate, and/or,
- A two- to three-month training period, or overlap time, for the buyer to become acquainted with the clients and your office procedures, and/or
- A promise that you will adjust the price in the event a client changes accountants within the first three to six months.
You also must be careful in whom you sell to. You don’t necessarily want to sell to the first interested buyer. Your successor should have comparable expertise, dedication, and drive. Otherwise, the client may change accountants, causing the buyer to adjust the buying price, resulting in an unhappy ex-client, an unhappy successor and an unhappy you! Lose, lose.
Working with clients can be rewarding and fulfilling. Improving your golf game can be a lot of fun. Work hard for your clients, and they’ll work hard for you when you retire. And if you’re interested in increasing the value of your practice, you should seriously consider increasing the services you offer.
Universal’s Training Programs are All Online!
If you’re looking to build your business and your clientele, we suggest you complement your offerings with tax preparation and QuickBooks services. And Universal’s online training make that more convenient than ever, enabling you to enroll today and begin changing your career tomorrow. We offer 5 programs designed to make your business more profitable. To sample our online courses for free, visit Universal today!
Resource
Powell, Robert A. “Planning for Retirement as a Small Business Owner.” 18 April 2012 news.ellwoodcity.org
Bookkeeping Express, the only US franchise focused solely on providing certified bookkeeping services to small businesses, has announced a 2 for 1 spring deal. Those who qualify can purchase 2 territories for the price of one, saving a total of $35,000!
Strategic partner of Universal Accounting Center, Bookkeeping Express enables financial professionals to launch their own franchise, which promises the following:
- Low investment. While the average franchise startup investment may have been $250,000 three years ago, many rapid-growth franchises today have total investments of $125,000. A Bookkeeping Express startup is less than $75,000.
- Rapid breakeven. Many of the fastest growing franchises boast a breakeven point within the first 18 months of operation.
- High margins. According to CPA Trendlines, accounting and bookkeeping firms are posting some of the strongest profit margins in this economy.
- Strong demand for service offering. Bookkeeping is a must-do service offering that does not ebb and flow with the economy.
And while the franchise industry can boast a 3% growth this past year, Bookkeeping Express has experienced a 30% franchise growth for its second year in a row! They have thrived in a recessive market because of all the benefit they offer through the BKE Franchise Community which includes a turn-key business model, a franchise development program, national partnerships, lead assistance programs, and much more!
The BKE Franchise Community includes an entrepreneurial coaching program which does the following:
- Identifies leads for your business
- Captures opportunities
- Trains in creative thinking
- Trains in necessary communication skills
- Helps you become more business savvy
- And more!
In addition to the Franchise Community benefits, you will be given, first-hand, innovative strategies and steps to successful entrepreneurship and new venture formation.
Today Bookkeeping Express boasts more than 40 locations in the US, 3 licensed offices in Canada and plans to open more than 400 new territories! Franchisees that take advantage of this 2 for 1 deal have the chance to claim prime territories and shape the franchise itself.
Bookkeeping Express believes they can help you fulfill your financial goals and succeed in launching a Bookkeeping Express franchise. Greg Jones, Chief Executive Officer of BookKeeping Express says, “Entrepreneur Magazine has named Bookkeeping Express one of the fastest-growing franchise systems. If you are looking to expand/grow your business, Bookkeeping Express can provide the tools for growth.”
See to your professional future today by taking advantage of this special spring deal. Just mention the offer when you call 703-766-5757 or fill out the inquiry form at www.bookkeepingexpress.com.
Financial professionals get a bad rap. Known as introverted “bean counters,” we’re often expected to be quiet and unassuming, traits often considered deadly among entrepreneurs. When imagining self-made business moguls, like Donald Trump, most see them as loud, schmoozing, cajoling snake-oil salesmen, a stereotype that isn’t very fair to extroverts either. But can both introverts and extroverts be successful entrepreneurs?
Diane Helbig, Small Business Trends writer, argues that not only can introverts be successful, “Introverts Do It Better.” Helbig believes that introverts are better listeners, develop “deep, lasting relationships” with contacts, and are more deliberate in their decision-making processes.
A number of recent articles on the value of being introverted seem to echo Helbig’s claims. Bryan Janeczko, blogger for Score, recently posted a piece entitled “Introvert or Extrovert: Who’s a Better Entrepreneur?” In it he references Nancy Ancowitz, writer, business communication coach and self-proclaimed introvert, who noted several characteristics that aid introverts in becoming successful entrepreneurs, including deep thinking, thoughtful about the things they say and do, a greater inclination to engage in deep conversation, and a tendency to be calmer and more reflective.
But how do introverts learn to channel these business-building characters they may have never previously valued? Howard Greenstein, writer for Inc.com, says that introverts may need direction in applying their more reserved personality traits to the launching and management of their businesses. He suggests introverts do the following:
- Use their abilities as thoughtful researchers to become familiar with their market.
- Prepare what they say in advance so that speaking opportunities enable them to share thoughtful reflections of their business’s value.
- Ask for advice from other business owners.
- When developing those solid relationships with contacts, establish themselves as an expert.
Noted experts agree that introverts are not doomed to business failure. In fact, some of those characteristics that you may have thought plagued you as the quiet, shy kid may be just what’s needed to help your business stand out. Reflect on your strengths and determine how they can be used to build a solid financial practice.
Universal Can Help!
If you’re looking for training to help you market your practice effectively, the Universal Practice Builder (UPB) Program is the course for you. Also called Marketing on Steroids, this course was designed by our own growth specialists who know not only how to market your specialized financial services, but how to market them effectively to qualified, prospective clients.
The UPB program provides the following:
Flexibility. You complete the course on your own time and at your own pact. And the engaging DVDs enable you to return to key concepts and instruction as necessary.
Complete education. This comprehensive training program will give you everything you need to build a thriving practice.
A qualified professional to answer questions. For six months you will have access to our professional coaches for personal, professional guidance via phone or email.
The Universal Practice Builder Program will equip you with all the tools you need to grow your business. If you find yourself lacking the intuitive salesperson personality, call Universal at 1-877-833-7909 to register for this phenomenal program now!
Resources
Greenstein, Howard. “Introverts as Entrepreneurs.” 10 March 2012 Inc.com
Helbig, Diane. “Introverts Do It Better.” 12 March 2012 smallbiztrends.com
Janeczko, Bryan. “Introvert or Extrovert: Who’s a Better Entrepreneur?” 28 March 2012 blog.score.org
We’ve all gotten stuck in rush-hour traffic, gridlocked as we travel in one direction that we quickly decide isn’t the best way to go.
The same thing can happen to your career. You may pick up speed in one direction only to become frustrated when you decide that you’re on the wrong career track with no exit in sight. Don’t panic. It’s still possible to find the right path for you. Consider the following four tips:
- Research. A change should only follow much thought and reflection (and a little internet research couldn’t hurt). It’s important that you take the time to study out the new industry you want to enter. Know what’s required for individuals in that profession— the experience and expertise needed, whether or not you would be able to move up, and where you might find those types of jobs.
- Take Inventory. Regardless of your previous industry, many of your skills and experience are transferable. Take inventory of what you now do and, following the research encouraged above, see how it might apply to the position you would like to get. Remember, a lot relies on how you present your skills and experience. If you know what a job requires you can often communicate your ability to do it by showing how your expertise can be properly applied. In a recent CBS Money Watch article by Margaret Heffernan, she gives four tips in making a successful career change, one of which is to “find some kind of connection” between your previous work experience and the new field you’re looking to enter. This helps prospective employers or clients take a gamble on your new skills while banking on your old ones.
- Network. Look at your contacts to see if there’s anyone with connections to the type of position you’re looking for. Make an effort to meet people in this new field of interest. You can learn more about general job satisfaction and requirements by talking to others. And once you make solid contacts, they can keep you informed of any openings they become aware of.
- Moonlight. Some of the experience that may be required could be obtained after your day job, either in the form of a part-time job or through freelancing work. Not only will this added effort look great on a resume, but it will also show how willing you are to extend yourself in order to break into a new field. That speaks volumes to potential employers of your dedication.
Master Coaching Can Help You Get Back on Track
The Universal Master Coaching Program can help you launch that career you want in the accounting and tax industry. Consider how partnering with a successful financial professional can help you make a smooth transition in your career shift.
Unlike other coaching programs, the Universal Coaches are masters in helping accountants and tax preparers achieve their expectations – they know what works and what doesn’t. This specialization gives them insights that no other coach will have. Not only that, but these seasoned professionals know how to implement the proven marketing strategies that are designed to get you up and running in three to six months.
Achieve true career success with the help of UAC’s Master Coaching Program. Call Universal at 1-877-833-7909 and secure a Master Coach to help advance your accounting and tax career today!
Resource
Heffernan, Margaret. “How to Change Careers.” 28 March 2012 CBSnews.com
Most contract accountants encounter a time when they must decide whether or not they are ready and willing to grow their business by hiring a support staff. Some are satisfied with their current workload and income. Others realize that an influx of clients means more demands on their already limited time. These accountants realize that by hiring even one employee they may be able to increase their capacity and their bottom line.
If you are interested in hiring a support staff, it’s important that you first consider the type of team you’re interested in building, because that’s what you want to do: build a team motivated to grow your practice. Use the following three guidelines to help you hire employees who will help you build a solid team.
- Determine your lack. You can’t do it all, and if you’re going to build a stellar team, it’s important that you know what your weaknesses are. Once you determine your lack, you can hire individuals who will fill that gap.
- Look for complementary skills and varied thinking styles. Your team should be balanced. In a recent Entrepreneur.com article entitled “How to Build a Stellar Team at a High-Potential Startup,” author Jennifer Wang explains, “You need risk-takers who can create and move forward with lots of new ideas, as well as practical thinkers who can figure out how to implement those ideas on time and under budget.” And regarding skillset, she quotes Teresa Amabile, author and Harvard Business School professor: “Redundancy is a sure way to kill creativity.”
- Don’t undervalue soft skills. The NACE’s (National Association of Colleges and Employers) 2010 survey determined that employers most valued a strong work ethic as well as communication, analytical, teamwork and technical skills. While accounting experience is paramount, it’s important that your employees complement that expertise with soft skills that enable them to put that experience to good use.
Growing your business by hiring a support staff takes time and considerable forethought in order to ensure you’re taking the necessary precautions as you move forward. If you’ve decided that you do indeed need to hire a support staff, decide now to build a stellar team that will help grow your business.
Universal Accounting Center’s Master Coaching Programs
Universal Accounting Center has two coaching programs designed to give you that extra help you need to succeed. If you are already a Universal student, chances are that you are familiar with the Academic Coaching program. Most likely you received support when you purchased the training program. At that time, you were assigned an academic coach who was qualified to answer all of your accounting, software and tax questions.
For those who want regularly scheduled coaching sessions, Universal offers the Master Coaching Program. For a relatively modest fee (especially when compared to other coaching programs), a student is assigned a Master Coach who will follow-up with the student at pre-arranged times each week to review progress on past objectives, discuss the student’s current position, and recommend action steps to take the student to the next level.
Probably, the greatest advantage in using a Universal Master Coaching Program is that these professionals are focused exclusively on the accounting career. Unlike other coaching programs, the Universal Coaches are masters in helping the accountant reach his or her expectations – they know what works and what doesn’t. This specialization gives them insights that no other Coach will have.
Look into our Master Coaching Program today! And if you want to aim higher, we suggest you consider pairing it with the Professional Bookkeeper Program and the Universal Practice Builder Program, both designed to help you start and/or build your own accounting practice.
We’re certain you’re an amazing financial professional. We’re also certain, that will a little coaching you can become even better. Call Universal at 1-877-833-7909 to learn more now!
Resources
Duncan, Katherine. “How to Build a Brilliant Team.” 15 March 2012 Entrepreneur.com
Koncz, Andrea. “Employers Rank Communication Skills First among Job Candidate Skills and Qualities.” 21 January 2010 NACEWeb.org
Wang, Jennifer. “How to Build a Stellar Team at a High-Potential Startup.” 9 September 2011 Entrepreneur.com
Whether you’re thanking a friend, family member, treasured client or colleague, it’s important that you do it right. In a recent Inc.com article entitled “4 Rules for an Effective ‘Thank You’” author Harvey Mackay laments, “If only more people held onto gratitude the way they hold a grudge!”
Acknowledging that many have touched your life for good is a healthy exercise that will leave you open to even more good things. Microsoft Business author Joanna Krotz even argues that regularly thanking associates with give you a competitive advantage. She explains, “Today, extending old-time courtesies helps you stand out. Yes, boys and girls, saying “thank you” has become a competitive advantage. So few people express appreciation — a Lenox etiquette poll found that nearly five out of every 10 people don’t always say thanks — that remembering to do so is a sales point of difference. It also goes a long way toward forging the relationships that can turn into opportunities.”
Here we offer 5 tips in creating a memorable ‘thank you’:
- Be genuine. Krotz suggests you be warm and personal while Mackay encourages sincerity above all else. Most importantly, when sending notes of thanks to business associates, it’s important that you do so without following it with a request. Turning a thank-you card into a promotion gimmick is disingenuous.
- Be specific. If you dole out generic praise, it rings hollow and could actually have an adverse effect on the recipient. Make sure you offer praise that specifies, exactly, what you are thankful for.
- Provide lasting recognition. As Harvey explains, “Consider a letter in the employee’s file or a simple celebration for the department that overcame a tough challenge. Appreciation is not a one-shot event. It needs to be ongoing.”
- Make it memorable. Krotz suggests giving clients and associates quirky gifts. Judy Katz accompanies her ‘thank you’ cards with a plush bird that has an authentic bird call. Recipients don’t soon forget Katz’s gratitude.
- Thank the complainers. Krotz notes that most dissatisfied customers don’t bother to complain; they simply take their business elsewhere. This is why it’s important that you thank those who bother to let you know they’re dissatisfied—without their feedback you wouldn’t know what to improve. B.J. Gallagher, an HR training consultant in LA explains, “A customer who complains still wants to do business with you, if you can make things right. So thank him or her for giving you that chance and assure him that you want to do everything you can to make him happy again.”
Spring is the perfect time to reflect on all those individuals who have helped you get where you are. It’s also a good opportunity to practice gratitude in a way that can positively impact our lives. Take the time to consider all those blessings you enjoy and then thank those who have contributed to them. You may be surprised at how such a simple act can change your life and the lives of those you’re thanking.
Thank Us Later!
Consider what your life would be like without the convenience of modern technology. Without software programs like QuickBooks, we would be required to do things the slow, old-fashioned way. Thankfully, we don’t have to.
The Professional Bookkeeper’s Guide (PBG) to QuickBooks will enable you to master this software program that over 80% of small businesses use to manage their accounting. Once you do, you will be able to work more efficiently as you use all the features, functions, and shortcuts QuickBooks offers. Not only will the PBG enable you to manage your own books more efficiently, but it can increase your bottom line as you add QuickBooks consultation, help and setup services to your offerings. With hands-on training you can earn a professional designation as a QuickBooks Specialist that will give you the creditability you need to convince prospective clients that you are an outstanding bookkeeper!
With just one small initial investment, you can increase your income and your clientele. Don’t wait to thank us. Call Universal at 1-877-833-7909 to order now!
Resources
Krotz, Joanna. “The Power of Saying Thank You.”
Mackay, Havey. “4 Rules for an Effective ‘Thank You’.” 7 March 2012 Inc.com
In order to become a Certified Public Accountant most states require individuals to pass the Uniform CPA Examination and meet educational, experiential and ethical requirements. This can take a lot of time and energy. But you must be a CPA to do bookkeeping, right?
Wrong!
While only CPAs can audit a company’s books and validate their financial information, you don’t need to become a Certified Public Accountant to act as an accountant or bookkeeper.
What Bookkeepers Do
There are eight steps to the bookkeeping cycle. A bookkeeper performs one or more of these steps and is sometimes called an AAT (accounting technician). In large companies, for instance, the bookkeeping cycle might be divided into departments such as Accounts Receivable, Accounts Payable, or Payroll. While most often these people are referred to as ‘clerks,’ they might also be considered bookkeepers because they are “keeping the books” for a company. In small companies, the bookkeeper may perform the entire bookkeeping process or might just enter data to give to the “accountant.”
What Accountants Do
Someone has to set up the bookkeeping system, monitor it, and interpret the results. These processes are called “accounting.” The accounting process is much less mechanical and more subjective. It begins with designing a system that will benefit the business by capturing the financial information in a useful manner without being overly burdensome to the bookkeeper. Once established, the accountant monitors the system to ensure it is doing what it’s supposed to do. And finally, on what’s generally a monthly basis, the accountant presents the financial statements to business management in such a way that important financial decisions can be made.
You Can Do BOTH without Becoming a CPA
Universal’s Professional Bookkeeper (PB) program will train you in small-business bookkeeping and accounting without requiring you to jump through those CPA hoops. Whether you’re looking to earn a promotion at work or whether are interested in launching your own accounting practice, this course will give you the knowledge, skills and confidence necessary to succeed.
The course includes the following four modules:
1. Accounting Made Easy. This module will enable you to master the tools, procedures, and underlying principles that comprise the bookkeeping processes of all businesses. Once completed, you will understand the core building blocks of Accounting and Bookkeeping.
2. Practical Small Business Applications. Apply your understanding of the core accounting principles to specific industries. You will learn to set up books from scratch, do payroll like a seasoned pro, and much more.
3. Advancing Your “Account-Ability.” Set up complete bookkeeping systems and manage the books for a variety of more sophisticated industries.
4. Building a Success Accounting Service. Learn the steps to finding paying clients. You will be fully equipped to start and grow a successful accounting practice.
So, you see, you don’t need to be a CPA to have a thriving accounting or bookkeeping practice. Universal’s PB program will enable you to train on your own time and at your own pace. In fact, within a couple months you could earn your Professional Bookkeeper’s Certification and have a growing clientele.
To enroll in the PB program, or to learn how Universal’s training can advance your career, call 1 -877-833-7909 now!
I hadn’t been working long when someone asked for my business name. Was my given name enough, I thought? Apparently not. Even though you may be a contract accountant working part-time from the spare room in your basement, you don’t want your business name to conjure that image with prospective clients. A professional business moniker will make your practice more credible, memorable, and marketable.
While some companies opt to use invented (Oreo), experiential (Infoseek) or evocative (Yahoo) names, a financial professional is probably better off selecting a business name that alludes to the services he or she provides. People appreciate being able to recognize a business type simply by reading the name. It also contributes to a potential client’s ability to remember the name and corresponding services when they need them later.
As you ponder which name best suits your company, you may find Entrepreneur.com author Brad Crescenzo’s startup naming tools helpful. In a recent article, he suggested 5 resources to use when brainstorming a name for your startup. We share three of those resources here:
1. Turn to Your Community for Feedback. Your local community is the best resource in helping you determine whether or not a business name will attract prospective clients. Crescenzo suggests, “After you have come up with some ideas, turn to those you trust. Your friends and family make a great initial test group. Organize your potential ideas, present the concept and create a survey to keep the resulting feedback organized.”
2. Perform a Google Search. Google has lots of applications that would help you narrow your options while informing you of duplicate business names. Its Adwords’ Keyword Tool enables you to see the popularity of various words and phrases, including the traffic generated by them. Using the patent search function, you could search the entire US patent database to see if any business has already registered your desired business name. Google Trends enables you to look through current and past search trends to see if your business name has ever made a showing.
3. Register the Name with the Government. Follow the trademark process and register your business name. Some states require sole proprietors to register any business name, other than their own given name. Before selecting a name it’s important that you research your state’s requirements. Also consider registering for an Employer Identification Number (EIN), also known as a Federal Tax Identification Number, at IRS.gov; it’s easy and free.
Master Your Startup with Proven Marketing Technique
Universal Accounting Center is in the business of helping build stronger, more profitable practices, and we can help you better market your services. Through our Universal Practice Builder (UPB) program, you can attract and retain more clients while building a more lucrative practice. Here’s just a sampling of what you will gain from enrolling in this phenomenal program:
- A guarantee of $30,000 in new annualized billings in only 12 months
- The skills to become a Profit Expert for each of your clients
- 12 marketing strategies that you can implement immediately
- A process which can produce 15 to 25 qualified leads per month
- 3 months of coaching via telephone and Internet
- Training to use QuickBooks to attract more clients
- Access to a plan proven to help retain clients
- 5 business assessments
- A customized business website
- An iron-clad guarantee
Go beyond selecting a solid business name, and master proven marketing techniques to grow your practice! Allow us to show you how. Call 1-877-833-7909 now to enroll in the Universal Practice Builder Program.
Resource
Crescenzo, Brad. “Five Tools for Naming a Startup.” 17 February 2012 Entrepreneur.com
It’s important to understand your industry, specifically what’s going well and what might need your attention. In a recent CPATrendlines article, author Rick Telberg (and CPATrendlines president and CEO) shares “The [Accounting] Profession’s Four Biggest Dilemmas” while also suggesting ways to resolve them. Consider addressing the following potential problems as you navigate your business this year:
1. Succession. Telberg is looking to big finance executives in determining that unless organizations plan for succession, those businesses won’t be around in another decade or so. And while he’s not specifically addressing smaller businesses, this could be a problem for your practice if you don’t have a succession plan. Would your business be equipped to move forward without you?
2. Staffing. Most accounting practices don’t have the budget to sustain a qualified staff without experiencing a high turnover rate. Telberg explains, “Too few CPA firms and finance departments have the budgets, time or inclination to address the issue squarely. It begins with pricing our offerings to provide returns adequate to fund a sustainable business model.” To accomplish this, he suggests adding complementary services that would increase clientele and revenue simultaneously.
3. Commoditization. In order to successfully market your practice, you must find a unique positioning strategy that sells your business as a valuable and distinctive entity. This can be difficult for those in the accounting industry where service offerings are often identical as are the marketing strategies promoting them. Telberg suggests “rediscover[ing] that ‘special something’” that sets your business apart from the rest, giving you a competitive advantage.
4. The Information Glut. There can be so much to focus on that we become overwhelmed by it all. To combat this, Telberg suggests we “pursue the true purpose in our lives and work by making a meaningful difference in the lives and work of others.”
Only in acknowledging problems can you overcome them. In addressing these four dilemmas, your practice can become stronger and better equipped to enjoy greater longevity and profitability.
Universal Accounting Center Can Help You Create a Custom Website for Your Practice
In this day and age, it’s important that your practice have a professional website. In addition to everything else you currently manage, building and sustaining a website may seem overwhelming. Allow Universal to help. Our website development tool, AccountWeb, is available exclusively for accounting, tax, and bookkeeping professionals. With Universal’s help, you can have your own website up and running within a number of business days, enabling potential clients to access your business even after your office closes.
To see a sample of a website developed from the Universal Accountweb platform, go to www.universalaccountingservices.com.
Whether you run a full-time practice or do accounting on the side, you need a website that tells potential clients about your business even when you are unable to. If you haven’t yet developed a website for your business, today is the day! Order your subscription now—your website will be up and running by the following business week. And if you are a Universal Accounting student you will receive a free six-month trial!
Resource
Telberg, Rick. “The Profession’s Four Biggest Dilemmas.” 1 February 2012 CPATrendlines.com
CBSnews.com writer Margaret Heffernan is asked for professional advice by many organizations. When a senior manager asked why they come to her, she explained, “Most organizations are complacent and narcissistic. They imagine they’re better than they are. And they are more inward-looking than outward. On both points, they miss their opportunities to improve.”
Often moderate business success can lead owners into a rut of satisfaction and contentment that limits an organization’s potential. In her article entitled “Most Companies are Complacent and Narcissistic,” Heffernan details the dangers of becoming too comfortable in your business.
Complacence
It’s easy to slip into complacence when your company is withstanding the recession. It’s even easier when your company enjoys a good reputation and a solid clientele. But when you become satisfied with your current standing, you risk losing out on many opportunities for improvement. Heffernan used one business as an example, explaining that in this particular organization, “There are many areas of the business which are merely adequate. Some are even inadequate. The fact that the company is regularly cited as excellent doesn’t pertain to everything they do or everyone they hire. But it’s human nature to dwell on the great news and discount the rest.”
If you find yourself complacent in your business, it may be time to raise your expectations and revise your business plan. Assess your current standing and raise the bar. Considering the fair position you currently hold, things can only get better from here.
Narcissism
Sometimes businesses focus so much attention on company organization and output that they forget they originally launched their business to serve a specific demographic; they forget the importance of their customers. Heffernan explains, “When companies start, they are fueled by awareness of the market, usually because spotting need is what led to the company’s creation in the first place. Entrepreneurs start with great zeitgeist—but as the business becomes bigger and more complex, it demands more attention. Focus shifts, slowly but surely, from the market to the organization itself. Process becomes more important, even mission critical. Before you know it, the business of running the business becomes all leadership thinks about.”
Narcissism is the act of being self-absorbed, a characteristic that doesn’t earn client loyalty. If your business has been too self-centered lately, it’s time to turn your focus back to your clientele. Consider issuing a survey through which they offer feedback on improving your service offerings. In this, you remove some of the focus from the organization and place it back where it belongs, with customer service.
If you find yourself comfortable with your business, perhaps it’s time to perform a quick assessment. Could what you currently define as satisfaction really be a mild case of complacency and narcissism? If so, altering your focus and expectations could be all it takes to make your mildly successful business wildly successful.
If you found this article helpful, consider taking advantage of our other free resources; join our free accounting and tax forums, follow us on Twitter and like us on FaceBook. You’ll be surprised at how Universal’s virtual community will enable you to stay in-the-know.
Resource
Heffernan, Margaret. “Most Companies are Complacent and Narcissistic.” 8 February 2012 CBSnews.com
