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*Want one piece of business strategy delivered daily to your inbox?* Subscribe here: geraldinecarter.com/subscribe How can CPAs grow their accounting practice when they’re over capacity, underutilizing their talents and not providing optimal client support? Many CPA firms still rely on the hourly billing business model, where the firm has to log more work hours providing services to increase revenue. It focuses on hours and deliverables, not on results and value. A compelling alternative is the subscription business model, where the provider enables serial transformations to the buyer, and continually adds value to the experience. The subscription model creates an opening for predictable, recurring, higher margin revenue. In this week’s episode, I talk about the subscription model with my guest, Ron Baker. Ron is the founder of VeraSage Institute—the leading think tank dedicated to educating professionals internationally, and is a radio talk-show host on the www.VoiceAmerica.com show: The Soul of Enterprise: Business in the Knowledge Economy. Ron has authored seven best-selling books, including: The Firm of the Future; Pricing on Purpose; Measure What Matters to Customers; and Implementing Value Pricing. His latest book, co-authored with Paul Dunn, Time’s Up!: The Subscription Business Model for Professional Firms, was published in November 2022. In this two-part conversation (episodes 233 and 234), we talk about: Sale prices and multiples How AI can help scale businesses Disney and other big businesses using the subscription model Ways to “plus” your offer How CPA firms can shift to subscription model Highlights: — “We need to stop charging for the means and pricing the end.” — “Strategy is about what you don't do. It's about the customers you don't have, the services you don't provide. It's all about trade offs. You simply can't be all things to all people.” — “It's very difficult for a business to disrupt itself.” — “CPAs have the ability to enable transformations. It's a privilege and a duty to help our customers, to make that impact on their life.” Connect with Ron: Website: https://www.thesoulofenterprise.com/ Ron’s book: Time's Up: The Subscription Business Model for Professional Firms https://www.thesoulofenterprise.com/timesup Episode mentions: Subscription Business Model: Build Greater Wealth in Your CPA Firm, with Ron Baker https://businessstrategyforcpas.com/147 Time to Rethink Your Pricing Strategy?, with Ron Baker, Founder of VeraSage Institute https://businessstrategyforcpas.com/081 Breaking Away from the Mainstream Medical Model with Dr. Lewis Weiner https://businessstrategyforcpas.com/206 Selling Summit CPA for Multiples, with Jody Grunden https://www.businessstrategyforcpas.com/225 Hold My Beer and Watch Me Niche, with Josh Lance, CPA https://businessstrategyforcpas.com/212 Book mentions: Uncommon Sense, Common Nonsense by Jules Goddard https://www.amazon.com/Uncommon-Sense-Common-Nonsense-Organisations/dp/1846686024 Built to Sell: Creating a Business That Can Thrive Without You by John Warrillow https://www.amazon.com/Built-Sell-Creating-Business-Without-ebook/dp/B004IYISQW
*Want one piece of business strategy delivered daily to your inbox?*
Subscribe here: geraldinecarter.com/subscribe
How can CPAs grow their accounting practice when they’re over capacity, underutilizing their talents and not providing optimal client support?
Many CPA firms still rely on the hourly billing business model, where the firm has to log more work hours providing services to increase revenue. It focuses on hours and deliverables, not on results and value.
A compelling alternative is the subscription business model, where the provider enables serial transformations to the buyer, and continually adds value to the experience. The subscription model creates an opening for predictable, recurring, higher margin revenue.
In this week’s episode, I talk about the subscription model with my guest, Ron Baker.
Ron is the founder of VeraSage Institute—the leading think tank dedicated to educating professionals internationally, and is a radio talk-show host on the www.VoiceAmerica.com
show: The Soul of Enterprise: Business in the Knowledge Economy.
Ron has authored seven best-selling books, including: The Firm of the Future; Pricing on Purpose; Measure What Matters to Customers; and Implementing Value Pricing. His latest book, co-authored with Paul Dunn, Time’s Up!: The Subscription Business Model for Professional Firms, was published in November 2022.
In this two-part conversation (episodes 233 and 234), we talk about:
Highlights:
— “We need to stop charging for the means and pricing the end.”
— “Strategy is about what you don't do. It's about the customers you don't have, the services you don't provide. It's all about trade offs. You simply can't be all things to all people.”
— “It's very difficult for a business to disrupt itself.”
— “CPAs have the ability to enable transformations. It's a privilege and a duty to help our customers, to make that impact on their life.”
Connect with Ron:
Website: https://www.thesoulofenterprise.com/
Ron’s book:
Time's Up: The Subscription Business Model for Professional Firms
https://www.thesoulofenterprise.com/timesup
Episode mentions:
Subscription Business Model: Build Greater Wealth in Your CPA Firm, with Ron Baker
https://businessstrategyforcpas.com/147
Time to Rethink Your Pricing Strategy?, with Ron Baker, Founder of VeraSage Institute
https://businessstrategyforcpas.com/081
Breaking Away from the Mainstream Medical Model with Dr. Lewis Weiner
https://businessstrategyforcpas.com/206
Selling Summit CPA for Multiples, with Jody Grunden
https://www.businessstrategyforcpas.com/225
Hold My Beer and Watch Me Niche, with Josh Lance, CPA
https://businessstrategyforcpas.com/212
Book mentions:
Uncommon Sense, Common Nonsense by Jules Goddard
https://www.amazon.com/Uncommon-Sense-Common-Nonsense-Organisations/dp/1846686024
Built to Sell: Creating a Business That Can Thrive Without You by John Warrillow
https://www.amazon.com/Built-Sell-Creating-Business-Without-ebook/dp/B004IYISQW
Business Strategy for CPAs: work less and make more. You know how to be an accountant – it’s running your business you need help with. With guests interviews and solo episodes, you will get business strategy every week to help you simplify your practice, get out of the compliance trap, get your time back, and command higher fees. Stop missing out on life: start working less while adding the next six figures of income. Business Strategy for CPA's is the show for you!