Can you buy market share for your business?To an extent, you can buy market share but there are problems associated with that strategy.
When I first started my practice, I had the bright idea to price my fees to such a low level that I would be certain to attract enough clients to fill my billable hours to capacity. Did it happen? No. Instead, people kept asking basically the same question. "Are you sure?". I also spent a significant portion of my time being grilled about my knowledge of tax law since potential customers figured something had to be wrong with the price being so low.
So, the work I did take on didn't generate me enough cash flow to grow. After a time, I needed to increase my fees to allow growth and upgrades in technology. There was a loss of clientele but my bottom line still improved regardless.
I suppose a business owner needs to decide if they intend to generate mad money on the side of what they make as someone's employee somewhere or to make enough to fund their self employment enterprise and be there for the customers for many years to come.
I am a CPA in San Antonio and provide bookkeeping, payroll, taxes and more. We offer a free initial visit and look forward to serving your business needs.
Richard J. Garcia | 09/19/2010