Written by Thea Foster, Director of For Accountants.
Interesting statistics re fee growth.
There are comments on the larger firm fees, I am more interested in the small to medium firm percentages. Some smaller firms achieved significant percentage growth and not all due to mergers and purchase of fees.
Reviewing some benchmarking numbers I produce for meeting Groups, again the growth is patchy, but some firms did achieve growth, such as a high of 11%, a 9.5%, an 8% and some 4%. There were two outstanding results, a 53% increase, but that was from a low base and a very hard working and innovative proprietor. Another increase of 188% was due to some fees being purchased, but that was not the only reason.
The growth firms are not necessarily CBD, they are often based in suburbs, nor are they all long established. In 2013, 2 of the firms admitted new partners from internal promotions. There is a discernible energy amongst the teams.
Knowing the firms and their proprietors (sole practitioners up to 8 partner firms) I can see the clever ways they market (blogs, focussed networking, international associations and use of websites). They also reach out to clients and identify and offer special work that can be done. Given the successful way they are managed, the extra gross fees have also produced a lift in profitability.
If you achieved significant growth, aside from purchase of fee’s or merger, what were the clever actions which created the growth?
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