Because of capacity concerns, many firms are putting growth efforts on the back burner – or pausing them completely. While having the time and resources to effectively complete the current workload and deliver exceptional client service and experience is important, not looking past today can be detrimental.
When I talk with firms about taking a break from growth, I often share my ongoing dilemma with our beach house on the Outer Banks. Every time we prepare to leave, I turn off our outdoor faucet expecting it will work as it always has when we return. The reality is, the external force of the salty ocean air often corrodes the tap, and when I least expect it, the faucet doesn’t turn back on when I need it to, and if it does, the water flow isn’t as strong as it used to.
Growth is the same for firms. Many firms say they need to turn the growth faucet off because of capacity concerns. While that sentiment is understandable, it’s not a reliable strategy. Much like my water faucet, many external forces in the accounting profession and general business environment will impact how, when, or even if the growth faucet turns back on or in the same manner it did before we shut it off.
The challenge in pausing or altogether stopping your growth efforts is when you’re ready to grow again, will you be able to jump in at the same level as before and see results?
Here are three key external forces you need to consider before turning your growth faucet off:
- Competition. While you may take a break from growth, your competitors may not. Stepping back from being present in a particular niche, showing up at events where your clients and prospects gather, and authoring thought leadership can open the window for other providers to gain ground.
- Talent. Given the staffing and recruitment issues facing the accounting profession, your team – and job candidates – may look different when you return to the market after a growth break. Some of the professionals you established as experts may have departed your firm for a competitor or left the market, and potential candidates may not know who you are if you’ve laid low for a while.
- Economic conditions. The post-COVID rebound, record-high inflation rates, and a potential recession are just a few factors creating havoc for most industries. And that doesn’t account for the day-to-day market swings and other changes that can spell boom or bust for business. Simply put, the market doesn’t wait for you. If there are opportunities now to leverage your expertise and connect with ideal clients, you could be playing a dangerous game by waiting for “the right time.”
Because you can’t control the above external forces, you must be very attentive to slowing or turning off growth. A growth break will leave you rusty when you get back in the game. If generating thought leadership, attending networking events, and making prospect calls are part of your current routine, imagine the effort it will take to get back into the swing of things after a hiatus.
That last part makes me think of the famous quote from Glengarry Glen Ross: “always be closing,” but in this case, it’s always growing. And that’s where I challenge you to look at growth differently before turning off that faucet and asking yourself how you want to grow.
Signing new clients – and more work – is only one way to achieve growth. Making sure you attract and serve the right clients while intentionally resolving capacity issues through effective use of technology, processes, and outsourcing can also help you grow smarter and more strategically without much effort.
Hopefully, you’re thinking twice about reaching for the faucet, and if so, let’s talk to see how I can help keep the growth flowing in a way that works for you.
