I didn’t expect the prediction to come true so fast, so I’m raising the bar.
There has long been a legend in the tech world that the first company to reach $10 billion with only 10 people is only a matter of time. Some even predict a $100 billion 10-person company is on its way. I think the same type of opportunity is coming to professional services, and it should serve as inspiration for anyone building an accounting firm right now.
The $2 million, one-person firm would be an extreme outlier, and it won't happen overnight. There won't be a fresh accounting grad leaving college that builds a $2 million firm before 2027. But, if you already have momentum and the right resources, the climb is possible. Maybe you have a really strong network in a certain niche. Maybe you have the capital to buy another firm and turn it around in less than a year with AI. Maybe you already run a firm with a few people that you won't mind separating from and run the business on your own with agents. Maybe you just left a Big 4 job and are ready to scale your own business.
So, what actually goes into building the $2 million, one-person firm? There are five key attributes:
First and foremost, a belief mindset. I've posted about the $2 million, one-person firm before and faced a lot of skepticism. I got all sorts of excuses or reasons why it wasn’t possible in theory. This might sound corny, but that’s not a winner’s mindset. We live in a different universe now compared to when most accounting firms started (unless you're starting one now). That means accepting there are new rules to the physics of growing a business. And there are a lot less rules than you think.
It takes courage and risk taking.
Expect 60-to-70-hour work weeks (or more) for a long time.
Levers to pull:
- Get more clients (better top of funnel marketing, higher conversion rate with better offer structure and lead management process)
- Higher annual contract value (upsells, continuity offers)
- Better retention (customer experience is No. 1)
- Lower cost of goods sold (automate as much as you can)
Only work on the business not in it.
Relentlessly pursue higher-leverage activities. No low-value clients. It doesn't matter if they're friends or family. Don't do machine work. Focus on 10X bets.
If pursuing the $2 million, one-person firm dream is not your goal, that’s totally fine. The dream is not for everyone. However, you can use everything I’ll share at PICPA’s Artificial Intelligence Conference to help you reach whatever business goals you do have.
If you would like to learn more from Toni Witt, be sure to attend PICPA’s first-ever Artificial Intelligence Conference on Sept. 21. Toni will speak on a host of issues, including building a strong AI foundation, mastering Claude and modern AI assistants, applying AI across core firm functions, and more. Time is running out to register, so sign up today!
Toni Witt is the co-founder and CEO of Sweet. He is the Fractional AI Director for dozens of accounting firms and builds AI systems that help firms win real hours back. He has been building AI tools for accountants for over three years and has trained over 2,000 accountants in AI skills.
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Statements of fact and opinion are the author's responsibility alone and do not imply an opinion on the part of the PICPA's officers or members. The information contained herein does not constitute accounting, legal, or professional advice. For actionable advice, you must engage or consult with a qualified professional.