Looking to expand

Fireraiser

I've just survived my first year running a part-time practice and proved to myself that I can do it. I'm now thinking that picking up an average of 1 client a month is not going to allow me to ditch the day job (which I hate with a passion) any time soon. So I need get a growth strategy.

I've seen buying fees mentioned on here a few times. what's the best way of finding fees for sale? Google hasn't been its normal, helpful self on this, but has pointed me at a couple of brokers. Are any of them any good?

jamesm96

Some of them can be, but not all. I'd say if you're going to use a broker then you want to use one who's been recommended to you.

Acquisition is definitely a phenomenally quick way to grow a business (though the pitfall is managing that growth); my father-in-law was a director of a small Ltd company called WSP which had 12 employees in the 1980s. They adopted a strategy of growth through acquisition... Google them now!

I think my main concern with purchasing blocks of fees is the motive of the seller; there's a risk that you'll end up buying a whole bunch of clients who are habitual late payers, constantly arguing over fees and always on the phone asking for this that and the other to be done yesterday. (BMW clients, as I call them).

So, due diligence is critical. If you find a firm / sole practitioner with a genuine reason for selling clients (perhaps because they are rationalising their client base and shedding those that they just can't serve very well, or maybe the practitioner is retiring) then you're on to a winner.

As an alternative means of growth, I know that some on here have had some success with a Google Ad-Words campaign, but I've no experience of that myself.

RAS

I know someone locally who purchased a block of fees several years ago and it has turned out quite well. I think the difficult part will be having sufficient capital or the ability to raise finance to purchase them in the first place. Expect to pay up to x 1 of gross recurring income. Dont think it is something I would do, but everyone is different. Why not look to replace your day job with something more part time or try subcontracting to local practices, allowing you to slowly build up yout client base, rather than jumping head first into it. Good luck with it all.