Knowing When To Fire Your Client

Knowing When To Fire Your Client

When my business partner and I had our CPA firm, our focus was always to grow the firm. Our emphasis was to add volume with the thought that added volume would result in added revenues, which in turn would result in added profits. We learned this is not always true. With additional volume comes additional hours working, additional overhead and additional staff, each with its own costs. It also meant we would delegate tasks to others in our firm who didn't have the same vested interest in the firm's success. Clients who are accustomed to the one-to-one interaction with the owners of the firm are generally not receptive to being handed-off to a subordinate.

I often said: "The wrong gatekeeper can destroy your business". If the person you entrust to answer the phone, screen questions and greet existing and potential clients is not knowledgeable, pleasant or representative of your business, you will lose opportunities quickly.

Another lesson we learned was not all clients are profitable. Some require much more time than others without the benefit of billing for the time spent. And if billing was appropriate, not all clients paid their bills timely or at all. The domino affect of these high-maintenance clients was they take away time from the clients who are profitable and pay their bills timely.

The morale of this story is to know when to fire the non-profitable clients so you can focus on the profitable clients who deserve your time and attention. Growth is good if it is profitable, but knowing when it becomes unprofitable is better. After selling the CPA firm and becoming a Qualified Intermediary, I applied this philosophy to my business. Unlike many of my competitors whose main focus is growth, at any cost, we maintain a level of business that allows us to answer the phone, greet the clients personally, and provide the one-on-one personal service the clients expect and deserve. In the end, everyone is happy and I don't have to fire anyone!

要查看或添加评论,请登录

George Christofely的更多文章

  • The Importance of Contract Assignments

    The Importance of Contract Assignments

    A taxpayer/Exchangor selling an investment property in a 1031 exchange, held under a single member disregarded LLC for…

  • Mixed Use Property - Unforeseen 1031 Complication

    Mixed Use Property - Unforeseen 1031 Complication

    The recent sale of a duplex raised some 1031 concerns. The duplex, owned solely by the husband, was used 50% as a…

  • Where Has The Time Gone

    Where Has The Time Gone

    Ten years ago this month, in one of the toughest real estate markets ever, we began facilitating 1031 exchanges under a…

  • Bifurcation Buys Time In A 1031

    Bifurcation Buys Time In A 1031

    A taxpayer wishing to exchange out of one property into 2 properties utilizing a 1031 exchange can bifurcate the…

  • Calculating Real Estate Gain

    Calculating Real Estate Gain

    In the various discussions I have with potential 1031 exchange clients, I sense confusion in the calculation of taxable…

  • 1031 UPDATE

    1031 UPDATE

    We added the current tax law changes affecting 1031 exchanges to our 1031 Update. See below: Independently Owned and…

  • I Walked Into a Bar......

    I Walked Into a Bar......

    True story! I walked into a bar and standing at the bar were four individuals, a Clergyman, a CPA, a Banker and a…

  • EXCHANGING REAL ESTATE & PERSONAL PROPERTY

    EXCHANGING REAL ESTATE & PERSONAL PROPERTY

    Often a real property sale/purchase includes personal property, such as furniture, fixtures and equipment. When…

  • COMBINING INVESTMENT & PERSONAL USAGE

    COMBINING INVESTMENT & PERSONAL USAGE

    A multi-unit or single structure with concurrent investment and personal use may be afforded tax savings upon sale…

    2 条评论
  • Short-term Seller Financing in a 1031 Exchange

    Short-term Seller Financing in a 1031 Exchange

    A Buyer of relinquished property in a 1031 exchange occasionally encounters delays in securing financing. However, both…

社区洞察

其他会员也浏览了