Do You Have a Dependency Problem in Your Business?

I had a fantastic session with my members today inside The Bookkeeper's Academy where we were discussing Owner Dependency Risk. 

It's one of those things that often doesn't feel like a problem...until it is. And by then, the impact on you and your business can be significant.

So what exactly is owner dependency risk? In simple terms, it is the degree to which your business relies on you personally to function. If you stepped away tomorrow, for a week, a month, or longer, what would happen? Would your clients be looked after? Would your team know what to do? Would your revenue continue?

For many bookkeeping business owners, the honest answer is uncomfortable.

We build our businesses on the strength of our expertise, our relationships, and our reputation. And while that is something to be incredibly proud of, it can also become the very thing that holds the business back. When everything runs through you, you become the bottleneck. And a business that cannot operate without its owner is not really a business...it's a very demanding job!

If you are a bookkeeping business owner, here are a few questions for you to consider:

• Do your clients contact you directly for everything, even if you have team members who could assist them? 
• Are your systems and processes documented, or do they live entirely in your head? 
• If you were unwell for a month, does someone in your business know enough to keep things running? 
• Is your revenue tied to your personal hours and availability?

If you found yourself nodding to any of those, you are not alone. Owner dependency is one of the biggest challenges most bookkeepers that I speak to struggle with.

Even if you're a sole trader there are practical steps you can take right now to start reducing this risk in your business and it doesn't mean running out to hire a team overnight. It starts with awareness, and a methodical approach to reviewing and changing 7 Key Focus Areas that I have identified as "Dependency Areas".

Inside The Bookkeeper's Academy this month, we are working on how to identify where the risk sits in your practice, and how to begin mitigating it in a way that is realistic and achievable for where you are right now.