It is common knowledge that the three most important considerations in building for the success of a CPA firm are location, location and location. That is, whether the CPA firm is a startup or a new office for an existing firm, it is necessary to be where there are sufficient clients and prospects to drive business development.
How does one determine what geographic areas and cities might be ripe for an accounting rainmaker requires that the firm have a good understanding of its present client base; a better understanding of the kinds of individuals, non-profits and businesses it wants as new customers, and some data to identify likely places to look first. The first two fall to the new3 business development team for the firm.
For the third, we draw on the research conducted by WalletHub. Evolution Finance launched Wallet Hub in February 2012 as a one-stop destination for all the tools and information consumers and small business owners need to make better financial decisions and save money. It is a financial social network that enables consumers to do three things: 1) search, compare and review financial products, professionals and companies; 2) share with and learn from a diverse community of individuals and companies as well as organize around your favorite financial topics; and 3) customize financial news from blogs, major news outlets, and experts.
For 2015, WalletHub evaluated 150 American cities across 13 metrics that ranged from ranging from 5-year survival rate and the affordability of office space to the educational attainment of the local labor force. These metrics generated scores for access to resources and for overall business environment, resulting in the ranking of each of the cities from best to worst.
Worth noting is the relationship of thriving businesses to thriving CPA Firms – that is, firms that survive and profit need accounting services, and therefore provide a target-rich environment for new business development.
While the data helps to identify potential sites for new and expanded CPA offices, it is still critical, that partners and decision makers remember the other two factors – the present client base and skill sets held by the firm, and the types of new clients the firm wishes to acquire.
WalletHub does not directly address the CPA market, but does have some interesting data on the differences in earnings for accountants and auditors by state. We will take a look at that data in a future post.
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Tags: Firm Management, Marketing, Small Business
