Podcast
Summary
- The Beginning: Trial and Error
- Clients and Value
- Running the Practice Ten Hours a Week
- Systems
- Anti-Timesheet
- Mentoring
Resources
- Reza’s website: rezahooda.com
- Three Ways to Get More Profit
- How to Raise Rates on Current Clients
- What Does a Recession-Proof Accounting Firm Look Like?
In this Growing Your Firm Podcast, Jetpack CEO and founder David Cristello brought in Reza Hooda, a mentor for growing accountants. Reza discusses how he went from a struggling firm owner to only working 10 hours a week at his one million dollar firm. Reza introduces some key aspects that helped him get to where he is now.
Meet Reza Hooda
Reza Hooda runs an accounting practice on the South Coast of New Hampshire in the U.K. Reza first started as a firm owner, but now he offers to coach other accountants who are willing to positively transform their work practices. Reza’s website is rezahooda.com.
The Beginning: Trial and Error
When Reza first opened his firm, the new work ahead excited him: telemarketing, getting new clients, being on the road, etc. He didn’t think much about pricing and priced his services at a low cost. This mistake ended up causing problems, such as:
- Stressing out his staff
- Some of his staff left. The employees who stayed had way too much work on their plates.
- The firm was gaining lots of clients but losing money
- No systems were in place, so clients weren’t getting the services they wanted
- As one client arrived, two left
- Working long hours
- Client turnover
- Unhappiness
Then, from a mentor, Reza learned about value pricing. Reza concluded that he was doing everything wrong and that pricing was his way out of this mess.
Clients and Value
When Reza implemented value pricing, he began seeing positive results. He realized that clients aren’t buying time—they’re buying an outcome and a solution. To determine pricing, Reza had to ask himself: “What is our value?” Clients in turn ask themselves, “Is the price I’m paying less than the value I’m getting?”
If your prices are too low, this might cause some concern for prospective clients. If you don’t value your services at a high standard, your clients will see this through your pricing strategies. Prospective clients are expecting you to price your services based on value. The greater the value, the more the prospective client thinks about purchasing one of your services.
Clients also like choices. People are more likely to pay more for something, if they’re given choices. This process allows the clients to buy from you rather than you selling to them. You’re giving your clients more freedom by letting them choose different options to purchase. You can also mix this strategy with value pricing. If a prospective client wants the basics, let them buy the basics. If you price your more expensive options based on value, people will notice this and potentially buy these services.
Running the Practice Ten hours a Week
As Reza made improvements to his firm, he began only having to work 10hours a week. His firm flourished, and he had more free time to enjoy life outside of work. Reza made lots of changes not only to his firm but also to himself:
- Implemented the systems he needed
- Learned more about leadership and business culture
- Stayed in contact with clients
- Focused on sales and marketing
- Worked on self-development
- Started reading business books, listened to podcasts, and attended classes
- Got his practice to run smoothly without him
Get everything you need to manage projects and meet deadlines.
Reza said that every practice should have core systems in place. He listed a few examples:
- Pricing System
- Price System for Onboarding
- Cost management
Reza explained that he needed to focus on giving his team the best systems that did more of the heavy lifting. As a business owner, you shouldn’t be doing technical work because there are technical support services you can purchase. Your responsibilities are to set up and run a business that can function without you. By creating this type of environment for your employees and yourself, you’ll be able to live life the way you always wanted.
If you give your staff great quality systems, they’ll give you better results. Teaching your staff how to work with these systems will drive their motivation. What drives your employees is allowing them to excel in their knowledge. You have to show them that there’s a bigger purpose for what they’re doing.
Anti-Timesheet
In 2018, Reza adopted the anti-timesheet style of workflow for his firm. This approach to the working environment allows people to work whenever, wherever, and however, they want. Through this style, employees don’t have set hours. Employees get this freedom as long as they get their work done.
Reza followed a hands-off approach following this style of work. He and his team have once a week meetings to check in and inform each other about key areas in the firm.
Reza says to give responsibilities to client management. Some of those responsibilities include:
- Making sure deadlines are kept
- Client queries get responses
- Maintaining services
- Getting the job done
Reza follows a four-pillar framework:
- Pricing
- Positioning
- People
- Process
Pricing and positioning are strategies to bring more revenue in and specify who you serve.
Reza also says to find your niche. By finding a niche, you can better focus on a smaller area and get your name out there in a more effective way.
Mentoring
Reza offers a seven month long course in power positioning. Reza kept hearing the same challenge: “How do you get more clients?” Reza decided, with all that he had learned over the years, he could help other accountants grow their firms.
Some key aspects that Reza mentioned that can help your practice are:
- Find your niche
- Double down
- Create a website
- Have your central message displayed in the center of the website. Most people look at a website for only 30 seconds. If you can say something that will stand out to people, you’ll reach your target audience.
Even though Reza started his firm in bad shape, he was able to improve himself and succeed.
Now, Reza coaches other passionate accountants and helps them flourish in their respective industries.
To listen to more of Reza’s advice, check out the full Growing Your Firm podcast above. If you enjoyed this information, leave a five-star review and/or share this podcast with a fellow firm owner who needs to hear Reza’s story.
