The big problem with partnerships is that while individual partners have diverse talents and strengths, these are often under-utilised in the firm. This can lead to limited growth opportunities for the firm and demotivation among partners who are often caught in the day to day running of the firm instead of maximising their talents or doing the work they’d prefer.
The basic solution to this problem is to turn these strengths into scale-able revenue streams.
A definition of “scale-able revenue streams”
‘Scale-able revenue streams’ are achieved when several value-add service offerings are bundled into a product that can be repeated to multiple clients. This means that each revenue stream can be scaled easily by repeating a set process to achieve a consistent end result for the client.
More often than not, value add services are offered reactively, such as when a single client makes a request for an issue to be fixed. The accountant then takes this on as a project. This means a service has to be designed and scoped, and tools must be designed to achieve the end results. (See TA48 Are Projects Killing Your Business?)
How to turn Partner Strengths into a Scale-able Revenue Stream
Let me explain how I approach this task with my clients, and then share a process you can adopt to begin maximising the strengths in your partners.
When I approach this as a consultant, we sit down with the partners and explore their individual strengths while reviewing previous successful projects. This allows me to work with the partners to outline 3-5 scale-able revenue streams. “That’s right all the one off projects you do for your clients will create 3 plus scale-able products”.
Questions for each Partner to consider when creating Scale-able Revenue Streams
For now, start the process by getting each of the partners to complete the following questions.
- What work do you love doing that clients have previously paid you to do?
- How many times have you completed this type of service for various clients?
- Are there more clients that would benefit from this service?
- Have you taken the time to create a system and the tools for this service?
- Have you designed a one page flyer to show how the service works?
These questions indicate 1) If your firm needs to create products and 2) begins the process of creating value-add products.
Tips for getting the most out of this process
Use these tips to maximise the impact of the exercise and ensure your firm benefits.
- Ensure each partner schedules time to answer the questions.
- Schedule a specific meeting with the entire leadership team to discuss the outcomes of the questions.
- Use the results to design a product offering and set up a system for your team to follow.
- Create a 90 day plan, with weekly sessions to allow for development, training and implementation of the product.
- Identify clients to approach and convert.
Turning individual partner strengths into scale-able revenue streams is one part of my Chairman’s Program. We’re still working on the details, but the program is due to launch next month.
Since we are still busy putting it together I’m not booking sessions just now… (Watch this space for updates.)
Andrew Robertson | TwentySix Group