More than 6,000 and 3,000 CAs or firms provide their services in Tier I cities like Mumbai and Bangalore, respectively. The number is comparatively less in cities like Pune and Kolkata with around 2,500 and 1,300, respectively.
Growing a new CA firm can be challenging owing to severe competition in such locations or any other metropolitan city.
Overview of CAs as per ICAI stats –
- Fellow CAs – 77,000+ in full-time and part-time practice.
- Associate CAs – 54,000+ in full-time and part-time practice.
- Total CAs – 2.8 Lakh.
Following a step by step guide to starting a new CA firm can benefit you exceptionally. While expanding, you can keep in mind a few tips and tricks to quickly grow your firm and expand your operations.
These include –
1. Provide complimentary services
Offering complimentary services may not be beneficial for you, but it can help you avail clients more quickly. Providing your customers with additional services without any charge creates goodwill; clients may also recommend your firm to other individuals in such cases.
Make sure to have a look at what your local competitors are offering and against what fees. Knowing the same can help you to align your premium services with the complementary ones more comfortably and without much loss.
2. Invite new partners
Expanding your partners is one of the ideal ways to grow your CA firm. Adding a new partner can also expand your client base bought by him/her.
However, one of the recurring problems that CA firms face when adding new partners is revenue sharing. Conflicts will arise among partners if there is no unanimous revenue sharing model.
Hence, prepare a model based on the current client base or position of your company. For example, you can agree to share the profits if your firm is new since the revenue will be comparatively low. On the other hand, you can share profits along with retainers if your firm has an acceptable vintage behind it.
Do remember that one of the essentials of a CA firm is to add more partners to expand it quickly.
3. Expand to a more prominent location
Your firm may not be able to increase clientele owing to your location. You may be located in an area where potential customers find it cumbersome to reach.
Hence, relocating to a prominent location can give you more advantage. Note that renting or leasing an office space can be expensive in such areas. Opting for a coworking space can be beneficial in such cases as you will not have to invest much. Make sure to know what is coworking space to have the concept cleared.
On the other hand, you can opt for external financing if you want to move to a satisfactory office space. Make sure you know how to apply for a loan for chartered accountant beforehand.
4. Create a strong online presence
The ICAI prohibits CAs and CA firms from soliciting clients directly or indirectly. Hence, you can make an online presence to reach your target audience and expand your customer base.
Starting off with a local business listing website is more beneficial. The majority of individuals, searching for services online, end up in such websites to know the best and closest business. Almost all local business listings offer their services for free; you may have to make payments to avail more features.
Apart from such websites, you can take the help of social media websites. Create profiles and reach out to individuals online to create leads. Additionally, create engaging posts that generate awareness about your firm.
Following simple steps can help you to grow your accounting or CA firm easily. Make sure to keep these tips mentioned here when doing the same. Refer to external financial assistance when you need them and consider them as an investment towards better revenues in the future.