An older story but really worth repeating to highlight how things can easily be done differently to achieve extraordinary results.
With an annual revenue of approximately £20 million and a clientele exceeding 14,500, it is clear why private equity firms took notice when Mr. Simon Dolan announced the sale of his company, SJD Accountancy, in 2014. The firm was sold to Sovereign Capital as part of a £100 million agreement, allowing Dolan, then aged 45, to leave with a remarkable sum of £81 million (around $144 million AU). However, he openly acknowledges that such growth did not occur overnight! He also emphasises that his impressive expansion was not achieved through conventional accounting practices.
As we find ourselves in 2018, having witnessed significant changes from the era when accountants relied on abacuses and pocket watches in back rooms, should accounting firms consider updating their practices? Dolan, now 49, from Chelmsford, Essex, UK, says, “We used cash flow to open other branches, we never bought anybody, all the growth was organic. It was a nice business with no capital costs – short of computers and people.”
Instead of adhering to conventional paths, Simon has always embraced a freethinking entrepreneurial spirit. This mindset led him to set aside the notion of becoming a partner in an accounting firm and opt instead to be the sole proprietor of an accounting services business. His unique outlook on life has prompted him to criticise the English education system as “pointless and impractical.” Additionally, his outspoken views on how young individuals are pressured into pursuing university degrees for better job opportunities have distinguished him from many traditional accountants. However, does this imply that ‘traditionalists’ must become mavericks to maximise their annual profits? Not necessarily; everyone has mentors and learns from others in various ways without having to mimic their actions.
While Dolan has consistently taken a unique approach compared to his peers, this doesn’t imply that you must share the same perspective to succeed. Countless successful individuals have carved their paths by emulating those who came before them.
What Additional Strategies Did Dolan Implement to Boost His Business Expansion?
“I made £800 the first month then after I wanted to do £1,000, so if you keep doing that over the years of course it gets bigger and bigger.” He remarks that significant growth resulted from a powerful ambition to continually achieve higher profits than in the previous month.
“Accountants need to move away from the ‘grow your business by hiring another partner’ model,” he says. The partnership model is flawed. “If you look at the Top 50, with the exception of four or five, essentially all they are is 50 individual small firms bolted together. The problem with that is you don’t make much money and it is impossible to make a decision. They should look at accountancy being a business and not as accountancy being something they do.” When Simon faces a decision, he opts to resolve it in an hour instead of convening all the partners to discuss ideas while hoping for a majority vote. Prior to selling, Simon Dolan had complete ownership of SJD Accountancy and was the only non-partner listed in the Accountancy Age Top 50+50. His fee income reached £14 million in 2013, marking a 16.6% increase compared to the previous year. As the sole proprietor of his company, this resulted in a substantial profit of £14 million, surpassing KPMG’s earnings at £2.78 million per partner.
Dolan’s game plan is clear, “Our particular niche is one- or two-man limited companies, mainly white collar workers. The reason we have been successful is that most accountants want to do something that is complicated. What we do is not especially complicated or varied.”
Dolan, author of How to Make Millions Without a Degree, humbly points out, “I haven’t found accountants to be especially good businessmen….” but that’s not an attack on accountants per say, “…I find that of people in general.” He also emphasises that the crucial point he is trying to make is that there is “no reason to believe they are better or worse than anyone else” at business building. A valid example of this being the strict billing of clients on hourly rates rather than carrying out jobs on a fixed fee basis. Whilst billing per hour is what has always been traditionally the case, accounting firms are making themselves slaves to how many hours there are in a day. By changing the mindset from ‘we are an accounting firm’, to ‘we run a business that happens to offer accountancy and bookkeeping services’, partners of accounting firms can shake off that antiquated feeling associated with accounting practices, and begin their crucial step forward towards driving their business en route to modern ways of billing, and hence growth. Imagine being able to bill higher fees for the same amount of work that your firm is currently doing now. Now that sounds like a way to achieve higher growth without lifting a finger!
An overview of some of the things that Dolan did to build his business:
- Dolan sees himself as the ‘owner of a business that happens to perform accounting duties’, rather than ‘a partner in an accounting practice’ (This shift in perspective alone can enhance your business to the next level)
- Prioritise organic growth over acquiring other firms, which saves capital expenditures. (Embarking on this journey independently doesn’t have to be daunting if you leverage insights and suggestions from those who’ve found success where you are also looking to thrive)
- Having a strong motivation for business success is crucial. (It’s worth noting that even though Simon sold his company and took a six-month luxurious break, he eventually realised, “It’s like being a footballer – they love kicking a ball around and they don’t ever want to stop. If there’s something you love, you don’t want to stop.” This natural desire to build something like higher growth can benefit your business.)
- Implementing fixed fee structures per project rather than billing hourly allows for increased earnings while maintaining the same workload — it’s an obvious choice!
“Break free from some of the old ways and see what lies ahead for your business”
BOSS provides accounting firms with a unique offer called The Freedom Service™. This is the opportunity to take on a qualified accountant (and/or bookkeeper) with only fifty hours of work per month. All accountants and bookkeepers are charged out on a fixed fee basis giving businesses the foresight of how much the jobs will cost before BOSS begins the work (plus all prices are agreed upon before work begins). Consider all budget overruns or financial write-offs a thing of the past! Now that’s Freedom!
