By definition, they’re not for the faint of heart—a risk means trying something that may not work. But if you want to run a successful firm you can't afford not to take risks. Ron Baker, author of Implementing Value Pricing, says it best:

Baker is saying that some of your greatest losses are coming from the risks that you are failing to take. That's how important risks are to your firm.

An example of risk

Here's an example of a risk we've taken at my own firm, Blumer & Associates CPAs. Our firm is fully virtual. Because we have no offices we get to hire the best accountants from anywhere in the country—accountants who couldn’t work in our firm without this model. They are incredibly gifted in their work and do not need to be managed.

Each client is assigned to a CPA who is responsible for leading that relationship. We call this CPA a Customer Ally. We feel this gives our firm a differentiating position and allows our team to focus on just a few clients at a time (each CPA can handle about 10 to 12 clients).

Our team has to be autonomous and super smart to be able to work like this—they’re effectively on the front line serving our clients. We take the risk making them the exclusive servers for our clients.

In mid-2014, we had to let one of our CPAs go, which caused big problems. Under our model, the unexpected departure of a CPA inevitably leaves clients without service. While most clients were understanding as we searched for a replacement for this team member, we lost a few good clients because of the fiasco.

But this risk also brings huge rewards. It allows me, the owner, to avoid doing any accounting, tax or payroll in our firm. I can focus on growing the firm and consulting with clients because of the great rewards of our strong team.

Risk is the foundation to innovation

We still operate our firm under this model of Customer Ally service. "Are you crazy?!”, you might ask. Yes, we've been burned and lost clients because of this heavy risk we bear. But, we had to look at the rewards we receive as a result of this business model.

We asked ourselves: are the rewards we are receiving worth the risk we are bearing? In fact, this is a question all accounting entrepreneurs must be asking themselves.