From Closing Offices to a Successful Exit in 7 Years w/ Wendy Barlin, CPA

Podcast

Summary

In this episode of Growing Your Firm, host David Cristello welcomes Wendy Barlin, a consultant specializing in helping professional service firms transition from frustration to freedom. Wendy shares insights from her decade-long experience in building her own remote firm, which she sold in 2021. 

The conversation delves into the importance of operations, systems, processes, and a fresh perspective on profit within accounting firms. Wendy emphasizes the significance of establishing firm boundaries to maintain control over one’s business and highlights the need for firms to adapt to these changes for long-term success. 

Tune in to discover actionable strategies that can help firms reclaim their freedom while enhancing their operational efficiency.

Guest Bio

Wendy Barlin is a distinguished consultant and thought leader in the realm of professional services, particularly within the accounting industry. With over a decade of experience as the founder of her own successful firm, 

Wendy has cultivated a unique approach to business operations that emphasizes efficiency, profitability, and the importance of work-life balance. Her journey from building a thriving remote firm to consulting with other firm owners showcases her commitment to transforming the way accounting practices operate.

Wendy’s career began with a vision to create a firm that not only delivered exceptional service but also prioritized the well-being of its team members. Over a ten-year period, she successfully established a fully remote firm that thrived without the traditional constraints of a physical office. 

This innovative model allowed her to focus on what truly mattered: her clients and her team. In 2021, Wendy sold her firm, marking a significant milestone in her career and paving the way for her current role as a consultant.

As a consultant, Wendy specializes in helping professional service firms transition from frustration to freedom. She works primarily with firms generating less than $10 million in revenue, often with one or two partners. 

Her philosophy centers on the belief that effective operations, streamlined systems, and a focus on profitability are essential for any firm looking to achieve sustainable growth. Wendy’s approach is not just about implementing processes; it’s about fostering a mindset shift among firm owners to prioritize their time and energy on high-value activities.

Wendy’s achievements extend beyond her own firm. She has become a sought-after speaker and advisor, sharing her insights on operational excellence, team dynamics, and client management. 

Her work has empowered countless firm owners to reassess their practices, embrace change, and ultimately enhance their profitability. Wendy’s ethos is rooted in the idea that firms can achieve remarkable success by aligning their operations with their core values and the needs of their clients.

One of Wendy’s key contributions to the industry is her emphasis on proactive billing and client management. She believes that firms should not shy away from raising their prices and should instead focus on delivering exceptional value to their clients. 

This philosophy has led to remarkable profitability for the firms she works with, with some achieving profit margins as high as 75%. Wendy’s ability to identify and implement strategies that maximize efficiency and profitability has made her a trusted advisor to many.

Wendy is also a strong advocate for the importance of hiring the right people and fostering a culture of accountability within firms. She understands that processes are only as effective as the individuals who follow them, and she encourages firm owners to be proactive in their hiring practices. 

By always being one step ahead in terms of staffing, firms can better manage capacity and ensure that they are equipped to handle the demands of their clients.

Detailed Synopsis

Establishing Clear Boundaries for Client Meetings

Wendy shares the significance of establishing clear boundaries for client meetings emerged as a vital strategy for enhancing productivity and achieving a healthier work-life balance for firm owners. Here are some key insights from the discussion:

1. Defining Meeting Days

Wendy shared her experience of scheduling client meetings exclusively on Tuesdays and Thursdays. This decision was intentional, aimed at safeguarding her time and energy. By limiting client interactions to specific days, she created dedicated blocks of time for focused work on Mondays and Wednesdays. This structure enabled her to manage her workload more effectively and maintain a healthier work-life balance.

2. Protecting Personal Time

Wendy’s approach to time management involved being protective of her schedule. She noted that she never worked more than 30 to 40 hours a week, even during busy tax seasons. By setting boundaries around client meetings, she ensured that she had time for her own work and personal activities, such as golfing or spending time at the beach. This balance is crucial for preventing burnout and maintaining overall well-being.

3. Client Expectations and Adaptability

Wendy highlighted that clients will adjust their schedules if they truly value the services provided. While she acknowledged that she may have lost some clients due to her meeting restrictions, those who remained were likely more aligned with her values and work style. This shift not only improved her productivity but also allowed her to focus on high-quality client relationships rather than accommodating every request.

4. Internal Team Meetings

To further enhance productivity, Wendy scheduled internal team meetings on Mondays at 11 a.m. This allowed her to align her team and ensure that everyone was on the same page before diving into client work. By separating client-facing days from internal discussions, she minimized the mental load of constantly switching between different types of tasks, which can be exhausting and counterproductive.

5. Empowering Support Staff

Wendy also discussed the role of her virtual assistant in managing client communications. By delegating her email management, she freed up approximately 10 hours a week. This delegation not only reduced her stress but also empowered her assistant to handle client inquiries, allowing Wendy to focus on strategic work and client meetings without being bogged down by routine requests.

6. Teaching Clients How to Treat You

A key takeaway from Wendy’s experience is that firm owners teach clients how to treat them. By establishing clear boundaries and communicating them effectively, clients learn to respect those limits. Wendy’s virtual assistant was trained to handle urgent client requests, which helped manage client expectations and reduced the pressure on Wendy to respond immediately.

The Importance of Time Management and Structured Workdays in Accounting Firms

Wendy shares the critical role of time management and structured workdays in enhancing productivity and overall firm success. 

Wendy shares her personal journey of transforming her work habits and the significant impact it had on her firm.

Key Takeaways

Establishing Thematic Days :

1. Wendy implemented a system where she dedicated specific days to different types of work. For instance, she reserved Mondays and Wednesdays for her own tasks, while Tuesdays and Thursdays were set aside for client meetings. This structure allowed her to focus deeply on her work without the constant interruptions that come from a mixed schedule.
2. By clearly defining these days, Wendy was able to protect her time and engage in strategic thinking and planning without the distraction of client meetings.

The Power of Boundaries :

1. Wendy emphasized the importance of setting boundaries with clients. She communicated her availability clearly, which allowed her to manage client expectations effectively. This approach not only helped her maintain her schedule but also taught clients how to interact with her firm.
2. She noted that while she may have lost some clients due to her new schedule, those who truly valued her services adjusted their schedules to meet her availability. This shift in mindset reinforced her belief in her worth as a service provider.

Delegating Email Management :

1. One of the most transformative decisions Wendy made was to delegate her email management to a virtual assistant. This change freed up approximately 10 hours a week, allowing her to focus on higher-value tasks that required her expertise.
2. By handing over her inbox, Wendy not only regained time but also reduced the stress associated with constant email management. This delegation allowed her to concentrate on strategic planning and client-facing work, which are crucial for firm growth.

Creating a Supportive Team Environment :

1. Wendy highlighted the importance of having the right people in the firm. During her transition to a more structured work environment, she experienced some turnover. However, she viewed this as an opportunity to find team members who were aligned with her vision for the firm.
2. She encouraged firm owners to assess their team dynamics and ensure that everyone is on board with the changes being implemented. A supportive team is essential for successfully executing new processes and systems.

Continuous Improvement and Flexibility :

1. Wendy acknowledged that implementing new processes is not a one-time event but rather an ongoing journey. She encouraged firm owners to be open to feedback and willing to adjust their systems as needed.
2. By regularly reviewing and refining processes, firms can ensure that they remain efficient and responsive to both client needs and internal challenges.

Always Be Hiring: Maintaining a Staffing Buffer for Capacity Management

In the competitive landscape of professional services, particularly in accounting and consulting firms, the ability to manage capacity effectively is crucial for sustained growth and client satisfaction. 

One of the key strategies discussed by Wendy is the concept of “always be hiring.” This proactive approach to staffing not only helps firms manage their current workload but also positions them to take on new opportunities without overwhelming their existing team members.

The Importance of a Staffing Buffer

1. Anticipating Turnover : Wendy emphasizes that turnover is a natural part of any business. Employees may leave for various reasons, including personal life changes or career shifts. By maintaining a buffer in staffing, firms can mitigate the impact of unexpected departures. This ensures that the workload can be managed effectively without putting undue stress on remaining team members.
2. Planning for Growth : Having an extra team member on hand allows firms to be agile and responsive to new business opportunities. Wendy suggests budgeting for an additional hire, even if that person may not have immediate tasks. This foresight enables firms to capitalize on new client engagements or projects without the risk of overloading their current staff.
3. Maximizing Productivity : When firms are at or near full capacity, it can lead to burnout among team members. By hiring in advance, firms can distribute workloads more evenly, allowing for better focus on client work and internal processes. Wendy notes that having an additional person can help with various tasks, such as reviewing work or providing backup support, which ultimately enhances overall productivity.
4. Enhancing Client Service : A well-staffed firm can respond more effectively to client needs. With a buffer in place, team members can dedicate time to high-quality client interactions rather than being bogged down by excessive workloads. This not only improves client satisfaction but also fosters long-term relationships, as clients feel valued and attended to.
5. Creating a Culture of Preparedness : By adopting a mindset of always being on the lookout for talent, firms can cultivate a culture that values growth and adaptability. This proactive approach encourages team members to think about the future and how they can contribute to the firm’s success, fostering a sense of ownership and engagement.

Practical Steps for Implementation

• Budget for Additional Hires : Firms should allocate a portion of their budget for potential hires, even if they are not immediately needed. This financial planning can help ease the transition when new team members are brought on board.
• Develop a Recruitment Strategy : Establishing a consistent recruitment strategy allows firms to identify and engage potential candidates before a vacancy arises. This could involve networking, attending industry events, or leveraging online platforms.
• Utilize Part-Time or Contract Workers : For firms that may not have the resources for a full-time hire, considering part-time or contract workers can provide the necessary flexibility to manage workload fluctuations.
• Regularly Assess Workload and Capacity : Conducting regular assessments of team capacity and workload can help identify when it’s time to bring in additional support. This can be done through team meetings or performance reviews.

By anticipating turnover, planning for growth, maximizing productivity, enhancing client service, and fostering a culture of preparedness, firms can position themselves for success in an ever-evolving marketplace. 

Wendy’s insights highlight the importance of proactive staffing strategies in achieving operational efficiency and long-term profitability.

Timestamps

[00:01:37] Helping firms achieve operational freedom.

[00:06:14] Time management in business success.

[00:09:24] Client experience and expectations.

[00:13:57] Client meeting scheduling preferences.

[00:17:44] Client list categorization exercise.

[00:19:57] Systems before software selection.

[00:24:51] Processes and people linked.

[00:28:39] Proactive billing for profitability.

[00:30:19] Always be hiring.