G.D.I.’s

As a college undergraduate more years ago than I want to recall, my alma mater, unofficially of course, classified the student body into two distinct factions – the Greeks, those who pledged and were members in good standing of a fraternity or sorority – or what they termed G.D.I.’s – an acronym for God D….d Independents.

Outside of occasionally hosting beer and grain alcohol-fueled mixers with members of an attractive sorority house, I never quite saw the benefits of going Greek, so I remained part of the latter group during the four years I spent on my parents’ tuition payroll. 

For those keeping score at home, I did manage to attend some of the above-mentioned parties without having to endure a month’s worth of hazing. But I digress.

I recalled this collegiate and social caste system when I was recently posed a question that read something like this: how does a CPA firm remain independent over the next 5 years or so without having to merge up?

With a still uncertain economy, which has made traditional organic growth sometimes as difficult as trying to put toothpaste back in the tube and the fact that someone in the U.S. turns 65 every eight seconds – and no, that’s not a misprint – that was an answer I had to ponder for a while.

So I came up with two-part strategy (feel free to add your own as well).

The first is to have a bona-fide internal succession plan in place, whether it triggers in 5 years or even 10. Firms who have procrastinated in this critical strategy, or those who have largely ignored it altogether, are traditionally the ones forced to enter a merger in the 11^th hour or worse yet, close for good. Find the potential leaders of your firm early in their careers and make them part of the strategy sessions. If you don’t, then another firm surely will.

The second is to have a strong business development program. I know that sounds easier than it is, but in a competitive market with scant organic growth, I can’t stress enough the importance of distinguishing yourself from the competition.

If your competitor down the block offers tax, audit and financial planning, then you should offer all three plus say, business valuations or lit support. With regard to clients, find out which categories are underserved in your market – it may be restaurants or auto dealerships. Then make someone in your firm the champion of that niche and begin the process of building it out.

Make no mistake, you won’t see double digit growth overnight, you may not see it for several years, but if executed properly it will happen.

And then you would be able to proclaim your firm as a G.D.I.