300) BEI Annual Conference – Tanya Scott and Hutchinson and Bloodgood, LLP

Tanya Scott and Hutchinson and Bloodgood, LLP

Tanya: “I’m a CPA and I’d like to say I am a business growth and exit strategist and I’m a partner in a CPA firm in California. The name of our firm is Hutchinson and Bloodgood.”

Norman: “You and I talked a little bit off camera when I stopped and you have a formula that involves four ways to grow a business. Tell us about that could you?”

Tanya: “Well, we actually believe that even though there are lots of different strategies that you can do in a business, there’s really only four basic ways to grow a business. And they’re really basic but then the really clever part comes from the strategies and how you actually make it happen. Well, let’s talk about the first one. It’s pretty easy, we just need to get more clients or customers or patients, depending on what we do. But the key here is to get the client, a customer or client or patient that we want. All of us have these clients that really are not the right fit for us.”

Norman: “How do we know what we want?”

Tanya: “I think part of it is being able to analyze really, are they people that you like to work with? Do you have a good vibe with them? Do they pay your bills? Do they value you as an advisor or whatever it is that you’re selling to them? Do they value what you do? We know we’ve all heard about A, B, C-ing your clients. But A is who we want. We don’t want a whole bunch of Cs.”

Norman: “And you can help the business owner actually come up with that process to follow, the A, B and C. I’ve done a lot of A, B, C.”

Tanya: “It’s not new, the A, B, and Cs.”

Norman: “No, it’s not. You find out and you think about it a lot and you think, ‘Well, they’re not really a B, they’re more of C,’ and how do I decide and maybe I’m not using the same and maybe depends on how I feel that day.”

Tanya: “Right. Well, like in our business we often will think about, ‘does that plan actually make referrals to us,’ our good clients. And they may not be otherwise, they may not hit a category but that is certainly valuable C to us, and so that’s going to carry more weight when we look at them.”

Norman: “That’s one way to grow a business. What are some others?”

Tanya: “Well, the other one would be once you get the right kind of clients is you want them to come and buy from you more often than they do. So how do you incentivize them to come back and see you? We all heard about the blowout sale, right? That they’re having down the street. Well, it’s a way to get you back into the doors. So depending on what you do, whether you’re selling advice or selling a product, we’d like them to come back and visit us more often.”

Norman: “We get the right client, we get them to do more business. Okay, what else?”

Tanya: “The other thing is on that transaction we want it to be a higher value than what it normally is. And this is where being a CPA kind of comes in. If we can help understand which are your most valuable products or services, but surprisingly enough a lot of times the things we like the best may not be the most profitable. And so, you need to really understand what it is that where the profit comes in and how can we actually increase the average value of that sale or sell more in an average transaction.”

Norman: “More customers or the right customers?”

Tanya: “Yes. More times you want to see them and increase the average value of the sale. And finally, this is probably what you think would be the first thing I would is, ‘oh, let’s cut expenses.’ I never would mind of having expenses unless they’re extraneous expenses, but what we really are trying to say was improving the process. How do you actually improve the process or even create or document processes in your company that are replicable? That’s what adds value to a company. If you want to come by my company, if you can’t figure out what I’m doing, how I’m doing it, I’m a very valuable company. So it’s really helping to document and understand your process.”

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