Owning an IT Business is the Perfect Way to Grow Your Accounting Practice
IT Support – running a managed IT service business – is a directly related career that can pay off in a big way
If you want to grow your accounting practice, the standard advice goes like this: build strong relationships, network in your community, invest in the right tools, and so on. But if you’ve built a successful business, you’ve already done that.
It’s time to think outside the box. If you want to grow your accounting practice, invest in an IT business.
You might be thinking, “An IT Business? I have no experience in IT.” The truth is that the link between an accounting business and an IT business are far closer than you might realize. Both are consultative, customer focused businesses that require helping small business owners understand complex issues, and proposing solutions that will make their businesses more productive, efficient and secure.
It’s fair to say that right now, your existing client base is relying on some sort of IT support, and their reliance on IT will only continue to increase. By not adding an IT business to your portfolio, you are leaving money on the table, and your clients are spending their money somewhere else.
The relationships that you’ve already cultivated with your clients are worth more than simply profiting from one line of service. An IT business will give you the opportunity to become a knowledgeable resource to your clients on a subject matter where a trusted vendor makes an enormous difference. You will also stand to benefit from a retainer-based business model that allows you to flex your consultative skills, broaden your business horizons, and yes, increase your earning-potential.
How Can an IT Business Make Your Accounting Practice More Profitable?
While accounting practices are usually profitable businesses, the reality is that many accounting practices aren’t as profitable as you would expect. An article published by Evergreen Small Business reports that the average owner of an accounting firm makes a “job-like salary,” and that “70% of all accounting firms generate less than $200,000 in revenue.” In fact, only 20% of independently owned accounting firms make a six-figure salary.
“In short, the typical single owner CPA firm produces a bottom-line net income roughly equal to the salary and fringe benefits enjoyed by an experienced senior accountant,” Evergreen Small Business reports. “And then remember of course that half of the single-owner firms are actually making less than whatever that median value equals.”
The hard work you’ve put in to acquire the skills necessary to open an accounting practice are more valuable than you realize. You can take the same skills that work in your accounting practice and leverage them into a retainer-based Managed IT Services business that serves the same base of customers: small business owners.
Before we go any further, let’s explore what Managed IT Services businesses do:
While Managed IT Services was once a niche segment of the larger IT Services industry, it is rapidly becoming a dominant force. According to a report published by Grand View Research, Managed IT Services is expected to reach $120.44 billion by 2025. The firm reports that small- and medium-sized businesses are creating much of the projected growth:
“Small and Medium Enterprises (SMEs) are increasingly using these services to make use of its numerous advantages. For instance, controlled IT costs, increased efficiency and competitiveness, and reduced risk, among others,” the firm writes in a press release.
As a CPA, the reasons that small business owners hire Managed IT Services providers should sound familiar. You’re already familiar with helping your clients control costs, increase efficiency and find solutions that offer a competitive edge.
A Managed IT Services Business is Essential in a Post-Pandemic Economy
If you were in business during the pandemic, one thing was made clear: a business that provides an essential service is not only recession-resistant, but also is able to thrive during a time of uncertainty.
Some of the changes that we have made to prevent the virus from spreading will stay with us for the foreseeable future. Nowhere is this more evident than in small- and medium-sized businesses who had to transition quickly, and make significant changes to their infrastructure, to allow their employees to work remotely. The savings provided by not having to rent an office, coupled with the fact that safety is a top priority means that working remotely will continue to increase.
TeamLogic IT is the brand that small- and medium-sized businesses rely on for their IT needs. As one of the leading brands in the rapidly growing Managed IT Services segment, TeamLogic IT stands out by delivering a comprehensive, consultative approach to IT solutions that eliminate downtime, help improve efficiency and profitability, as well provide security against cyber attacks. In these uncertain times, having a partner that is there 24/7 to provide assistance in a customer-friendly way, is something that small business owners are going to need.
For Todd Harrell, owner of a TeamLogic IT franchise in Central New Jersey, these last few months have been some of the busiest he’s ever had.
“Our phone has been ringing off the hook,” Harrell says. “These last few weeks, we’ve been extremely busy. Our clients have had to react quickly to working from home, and all of the end users have needed help. We help them make the transition in a secure way, and we’re helping them to continue to operate smoothly and effectively.”
Why Investing in a TeamLogic IT Franchise is a Wise Choice
TeamLogic IT was created to become the go-to IT team for small- and medium-sized businesses. We offer fast responses to IT challenges; but more importantly, we act as an IT advisor to our customers, monitoring their vital IT systems to prevent problems and eliminate downtime. We also analyze their businesses to recommend specific technology solutions that can help them grow. We’re not just the people that business owners call when something breaks; we are business partners who provide guidance and access to new technologies that can help make our clients more efficient, more profitable and more secure.
“Our sweet spot, and where we do well, is in working with the companies that have outgrown their local IT service provider but are still too small to work with an enterprise IT service provider,” says Chuck Lennon, Executive Vice President with TeamLogic IT. “In reality, every small business in the U.S. needs us to some degree. Business owners have never been more sensitive to their dependence on IT; IT drives productivity and, ultimately, profitability. We tend to talk very little about technology with our clients and a lot about business. What happens when their technology fails? How much will business be affected? We help our clients leverage technology to run their businesses better and more productively, and ultimately more profitably – this is a services business, and customer service is king.”
According to our most recent Franchise Disclosure Document, the top 3 TeamLogic IT franchise owners generated almost $2 million in average gross sales, equating to $393,000 in average net owner compensation. This is why TeamLogic IT is continually ranked on Entrepreneur Magazine’s “Franchise 500,” list of the top franchise brands to invest in.
“We exist to ensure that our owners have the ability to run profitable and growing businesses,” Lennon says. “We’ve been growing comp sales in the double digits for several consecutive years in a row. Our existing franchisees have grown their revenues significantly. It’s proof that our business model works, and that we have some of the most passionate and dedicated franchise owners in the industry.”
Don’t Be Intimidated By Tech: a Managed IT Services Business Requires the Same Skills You Already Have
As a TeamLogic IT franchise owner, you will run your business like a CEO. This means that you will hire the best technicians in your market to handle the IT support, while you focus on high-level strategies such as sales, networking and communicating with your clients.
“I didn’t have experience in the IT industry before I franchised with TeamLogic IT,” says Andy Hackett, owner of a TeamLogic IT franchise in Boston, Massachusetts. “To be honest, I’m not even a technical person. What I’m good at doing is understanding what a business owner’s problem is, and meeting that need on our end. I rely heavily on my technicians to come up with a solution. I’m the conductor of the orchestra, I keep the clients happy, and I keep my employees happy. That’s really an important part of the job.”
The success of a TeamLogic IT franchise business requires the skills that you already have:
- High-level consultative and selling skills
- High-level management skills
- Strong leadership skills
- Ability to develop relationships
- Ability to explain complex concepts
- Ability to collaborate and work together
“There’s no question that we’re in the customer service business,” Lennon says. “What makes us successful is that we talk the language of business, and not the language of technology. If a customer wants to reduce their overhead costs or become more efficient, we help them find the right solution to fit their needs. By hiring us as their Managed IT Services provider, we give them peace of mind necessary to focus on their business, knowing that they have someone who is watching out for their best interest.”