Last month, I shared an update on our recent restructuring efforts, emphasizing the importance of introspection during this phase. Our break from routine allowed us to strengthen our practice's foundation, particularly during the demanding COVID-19 period when our focus was heavily on client support. This dedication, while noble, led to neglected internal efficiencies, resulting in financial strain and the need for a business loan.
We responded by tightening financial controls and rigorously monitoring our Key Performance Indicators (KPIs), specifically focusing on KPIs for bookkeeping firms to realign with our goals. This process has ushered in a refreshed approach to our business and newsletter, promising a more engaging and reflective format. As we continue this journey, I'll delve deeper into our experiences, hoping to foster a dialogue about the challenges and recovery processes that many of us face but seldom discuss.
As we ventured into the COVID-19 era with $195K in our business savings, we aimed to emerge stronger. Adopting the philosophy of "build it and they will come," we refined our definition of an ideal client and made the decision to let go of $10K per month in recurring revenue that no longer fit our client profile. To add to this, we hired two full-time offshore bookkeepers, focusing heavily on their training and development. This meant allocating significant time for their continuing education, with the expectation that this phase wouldn't last long.
To manage this new team, we promoted an existing team member to a management role and shifted our marketing personnel to focus solely on sales. In retrospect, these shifts exposed a critical oversight: I assumed my core team was well-prepared and that the new dynamics would naturally fall into place. This assumption led to my first significant mistake—insufficient communication. Transitioning to full-time remote work exacerbated this issue, as the need for constant communication wasn't as evident with our smaller, more familiar team.
The expanded roles and new expectations required much more communication than I had anticipated. Increased dialogue wouldn't have been micromanagement but rather necessary support to set the team up for success. This realization underscored a pivotal lesson: clear and consistent communication is essential for success, especially during periods of change. When paired with tracking and improving KPIs for bookkeeping firms, communication becomes a powerful tool for navigating growth and transformation.
This experience has been a valuable lesson in leadership and adaptability. It reinforced the importance of refining our internal processes and consistently reviewing our KPIs to ensure we remain aligned with our values and objectives. These insights are helping us evolve into a stronger, more resilient practice.
Until next time,
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