Like any business, your accounting business sees seasonal highs and lows. So, how can you make the most of each to gain more clients, increase revenue, and grow your accounting business? Here’s a closer look at how you can use working capital during these times.
1. Expand Your Website
You might already have a website for clients to find you. However, is it as strong as it could be? Your accounting business’s website needs to utilize the right features and tools to beat the competition in search rankings. With extra capital, you can invest in:
- Thorough branding, which will allow clients to immediately recognize your business.
- Search engine optimization (SEO), which can improve your position on page 1 of Google.
- Simpler navigation and website speed, which can keep clients on your website for longer.
- Analytics and reporting, which can tell you who is visiting your website, how they got there, and when they left.
- And more!
If you’re not sure how to expand your website, consider hiring a full-time or contract web developer to help.
2. Cover Operational Expenses
Whether during your seasonal high or low, you can use extra capital to cover operational expenses. These can range from payroll and inventory to utilities and more. During your busy season, you can use a small business loan to take on more clients by hiring extra staff and expanding your hours. During your slower season, you can use this funding to help cover cash flow gaps.
With the right funding, you can plan expenses ahead of time. You can create expense sheets you’ll need to handle year-round, leaving room for unplanned expenses. Let’s say your office is busier during January through April. You’ll need to ensure that your equipment and software are up to date before you take on a larger workload.
3. Expand Your Offerings
During your seasonal lows, you might wonder how to keep up with bills, payroll, and general expenses. One approach to consider is diversifying your services or offerings. With extra capital, you can build upon current services and invest in the tools to offer new ones. Diversifying your business can help keep a steady revenue in your accounting business’s bank account year-round. It also can improve client relationships because clients can receive more services in one place rather than having to jump around to different businesses.
If you’re not sure how to expand your accounting business, here are four options to consider (if you’re not already implementing them):
- Strategic business planning:Help your clients roadmap their business, perform market research, or take advantage of expansion opportunities. You can let them know which ideas are doable and which may hurt their budgets.
- Cash flow management: Not all business owners are financially savvy, and this is where you come in handy. Become an advisor for small business owners when they face cash-flow issues, by developing cash flow projections to help them plan their budget – or even direct them to lenders.
- Succession planning: For clients with family-owned businesses, it can be an awkward transition when the next generation takes over. Estate taxes and even familial disputes can make the process chaotic, but you can help clients create a succession plan for future generations to avoid the potential drama.
- Referral program: You can even add a referral program for your clients. Offer your clients discounts on services when they refer a certain number of clients to your business. Referral programs help build a loyal consumer base and are a great form of word-of-mouth marketing for your business.
4. Increase Your Marketing Spend
Marketing is essential for any business. To beat the competition, you need to reach the right audience and convince them to choose your business. If you haven’t spent much time focusing on your marketing strategies, now is the time to do so. With a line of credit, you can hire an in-depth strategic marketing team, purchase analytical tools, invest in customer-relationship management (CRM) tools, and more.
When you evaluate a marketing campaign, you need to spend time to research your audience, evaluate how well you’re reaching them, develop a new idea, and promote your campaign across all marketing channels. The right marketing campaign can help you gain new clients throughout the year and can get word about your new services out there much quicker.
5. Invest in the Right Tools
Your accounting business needs the right tools to take care of clients, boost productivity, run your business more efficiently, and more. Extra capital can help you acquire the tools you need to make the most of your business. Whether it’s upgrading to a better package, purchasing new applications/tools for client engagement, or renewing a pricey annual tool, you can invest in your business’s success with additional funding.
However, these tools aren’t just limited to software applications. If you’re not doing so already, consider allocating funds toward tools that help with time management, data/document sharing, scheduling (both meeting and social media posts), and other tasks.
Are you already using working capital to take these steps in growing your accounting business? If so, please share your experiences in the Comments section below.